extra payment been taken off but as 2p credit!

kparka

I recently paid £50 off my mortgage as an extra payment & hoped santander would just take £50 off what we owe as a whole but it seems its been taken off as a 2p credit towards some payments instead i.e. 50 direct debits are now 2p cheaper... is this normal? seems odd to me. ive never paid extra befoe so wouldnt know if this is how it actually shows.
Thanks
Kerry

cha97michelle

It all depends on how your mortgage is set up. Mine i have the option online of telling them i want to reduce my term of my mortgage every time i pay off £500.

It is possible that you need to tell them you want a term reduction every time you overpay, as otherwise they just reduce your payment.

Queen-Bee_2

Hi Kerry, I had to tell the Nationwide each and every time that I wanted repayments to come off the capital owing, or they reduced my monthly repayment by a fractional amount. QB

Sayaka

I had exactly the same experience with Alliance and Leicester. Make sure you tell them it's to come off the term, not the repayments.

WestonDave

Abbey - now Santander need telling that you are reducing the term when you overpay otherwise they reduce the payments.

kparka

thanks folks, i went in to see them today & apparently if i overpay by less than £500 it will come off my payments, only overpayments of £500+ will come off the term.