Overpaying Santander Mortgage

cuthbert_the_octopus

We have recently bought a house, and the mortgage is a 2 year fix from Santander with a 70% LTV.

It has always been our intention to overpay the mortgage, and it was sold to us on this basis. We took out the mortgage through a broker.

We had planned to set up a standing order to overpay every month.

However, we have not received details of the account to overpay
On Saturday we went into our local branch of Abbey (Santander) to try and get the account number and was told to overpay we have to write a cheque and take it into the branch to give to the cashier. They also said that the smallest amount we can pay off is £500.

I asked if I could set up a standing order, only to be told you have to come into the branch and if I wanted to increase the amount I pay every month I would need to decrease the term.

This seems ridiculous - are they trying to put us off overpaying. In this modern world, why on earth would I want to queue up in branch once a month.

Is this correct??
I had planned to overpay every month, but not necessarily the same amount (just whatever I could afford), and it would not be as much as £500. Maybe set up a SO for a set amount each month, and then top it up when I could.

We have been though all the paperwork and there seems to be no mention of this. The only rule being we can only overpay 10% per year.

Thanks for your advice...... it just feels that they are trying to put us off overpaying!

Moedot7

Hey, I bought a house in February 2010. I got a rate of 3.99% fixed for two years.

I was told could overpay by 10% each year.
I called 08000280064 (dont dial their expensive 084 numbers)
It always takes me straight to Mortgage department.

I asked them if i could make an online transfer into my mortgage account. They said yes, and gave me sort code and account number.

I transfered the money i was saving as a big lumpsum on December 23rd around £12k. On December 31st they returned it all back into my currecnt account again.

Whats going on, I dont understand. Do I have the same issue as you?


Did you manage to hear anything Cuthbert?

Thrugelmir

Moedot7 wrote: »

I asked them if i could make an online transfer into my mortgage account. They said yes, and gave me sort code and account number.

Do you supply information on the transfer, i.e. mortgage account number?

dobsoncrew

Phone up Abbey (Santander) and go through to morgage accounts, maybe number in post above, try first as 0800. Ask for the sort code and account number to make overpayments, they should be very helpful. They may say to phone them each time you overpay so they know that you are overpaying. As you are not the only customer overpaying

n90bar

Hi Guys

I had exactly the same problem as MoeDot7. Every month I would repay an extra £200 by standing order, only for the DD the following month to be reduced by that amount. When I finally managed to speak to someone (yes I got sent to the branch initially too but they said it wasnt their department) by phone, the advisor told me I could either make a debit card payment over the phone for ad-hoc overpayments or they could up the DD amount by a fixed sum. I decided to do this and the extra £200 has been coming out at the same time as my mortgage payment without trouble for the last 8 months.

I think if you want to overpay by varying amounts each month the n the best solution is to either ring them and pay by debit card over the phone, or set the money aside and ring up once every while and make a larger payment.

ben1con3

call the mortgage centre and they will take a payment from you or set up a standing order to the account on top of your direct debit.
just be aware you do NOT pay over 10% in the year (jan - dec) as you will have a charge!!!that is if you are in a fixed rate, tracker rate or any other rate that will incurr a charge, excluding the Flexible mortgage or SVR (PLEASE check your terms and conditions first)