Overpaying mortgage with LLoyds TSB?

frugallady_2

Hi

Is anyone else overpaying their Lloyds tsb mortgage? (Cheltenham and gloucester?).

I've just called up to check what effect the overpayments we've been making over the last year have had, and am bit disheartened.

I had a fancy spreadsheet and assumed we'd be saving on interest for the rest of the term, but it looks like we're not. The lady I spoke to said the £3.3k overpayments we've done equate to about 7 months mortgage, so the term will be about 7 months less at the end, but they don't adjust the term as they go.

Worked it out that the £3.3k is about 7 months of our regular mortgage cost, so it looks to me like they'll be earning the interest on our overpayments over the rest of the mortgage term and still charging it to us!

Any advice?

Thanks
frugallady

greent

We're with them. They don;t adjust the term as you go, no - this was 'standard practice' for mortgage lenders, as change of term wasn't covered in the loan paperwork (change of payments was) They aren't charging you extra, nor are they earning int on your OPs. You are benefitting. It's hard to see sometimes, esp if your mtge is large/ term is short, but you get to see the difference on your annual stmt. There will be what your mtge payment 'should' be to pay it off for the original end date. This will be less than last year (even assuming int rates stay the same throughout, eg fixed) because you have OP'd.

frugallady_2

Thanks for that, we're still waiting for our annual statement so maybe I'll feel more hopeful when I look at it!

frugallady

greent

We're awaiting ours too. Wish they'd move into the 21st century and allow online viewing of it all!!

frugallady_2

That would be good!

lily288

greent wrote: »

We're awaiting ours too. Wish they'd move into the 21st century and allow online viewing of it all!!

We are also with Lloyds tsb, I did ask this question about 6 months ago if they were going to do the online thing, she said it was in the pipe line but no idea how long it would be.
As I say this was about 6 months ago so you never know might be soon :j but then knowing C &G maybe another year :mad:

ryan86uk

Can you overpay on a C&G mortgage online via Lloyds TSB? and/or Can you overpay on the phone to C&G?

Thanks.

The_Doctor_3

My overpaying experience may be useful here. I send chunks of cash via Bank Transfer to the C&G account for my mortgage. Usually acknowldeged the same day or the next day if you call up to confirm receipt.

I have never tried to pay by bank card over the phone - probably best to pop into your branch for this is my guess.

Brodiebobs

I have a c&g mortgage and we went on the website theres a overpayment form you can fill in and post to them if you want to pay the same every month, they seem to reduce the interest amount when overpayments are applied in my case.

Or alternatively when we have a 'spare' amount to pay i put it all in a savings account, like a virtual piggy bank, then write a cheque out to the mortgage account number and post that to them.

I know you can also do this in branch but my local lloyds where i took out the mortgage stopped servicing c&g mortgages for some reason and the next closest one is 20 miles away!!!

Hope that helps. x

mfwin2019

I am with C & G & I make extra repayments over the phone from my debit card, you can specify if you would like the payments reduced or the term. I find this much easier than posting a cheque to them & have never had any problems. They send you a confirmation letter within a few days so you know it has all gone through OK.

I too have asked about online mortgage repayment & being able to view balances etc but they say it is in the pipe line but there is no firm date for it

ryan86uk

Brilliant, thanks for the replies! Appreciated!