Overpaying mortgage with LLoyds TSB?

pawlala

I paid off my first mortgage through C&G, limit over the phone is £5k per transaction, any larger sums have to be done in branch. So I did a large one in Lloyds. Very easy process either way though, which is why I am staying with them!

abouttimetoo

I'm with C&G too and I got my annual mortage statements (got more than one mortage with them) very early in January so maybe you need to ring them to find out what's happening?

I always make my OP's to them via interent banking, I send the money to them from a LLoyds account and it goes through the faster payments system instantly so that's great!

Regarding being able to see our mortgages on-line, I'd love this too but they told me more than two years ago it was in the pipeline

OP, hopefully the answers have convinced you C&G are not benefitting from your OP's they are definately reducing the capital so you are paying less interest; as for reducing the term, I know it might be nice to see in black and white but it's probably a bit of a pointless exercise as it will finish early anyway, keep up the OP's, you're doing well

The_Doctor_3

Hi all,

I understand that an overpayment cap of 10% of the capital amount remaining on your mortgage, as of the 1st of January each year, appears to be the rule applied to Fixed mortgage rate holders with C&G. During one of my recent phone calls with them, it was hinted that the 20% cap which exists (at least for SVE mortgage holders until March 2012) would stay and may even be raised.

My MFW spreadsheet relies on the 20% figure remaining in place for the forseeable future but I just realised that the monthly amount I am paying (the minimum payment) is likely to decrease by some amount once I drop to the SVR next year.

My questions to you all are:

Q1. Do we have any leverage over defining the amount of the minimum payment as I would like to keep it at it's current level (or even raise it??)!

Q2. I am expecting a NO to Q1 without me or C&G modifying the payment term of the mortgage. True or False?

Q3. Has anyone heard anything concrete from C&G regarding their intentions for the 20% repayment ceiling in 2012?

Many thanks in advance for your feedback and support. I love this forum.

The_Doctor_3

The_Doctor wrote: »

Hi all,


Just spoke to C&G and the news is fairly good.

I understand that an overpayment cap of 10% of the capital amount remaining on your mortgage, as of the 1st of January each year, appears to be the rule applied to Fixed mortgage rate holders with C&G. During one of my recent phone calls with them, it was hinted that the 20% cap which exists (at least for SVE mortgage holders until March 2012) would stay and may even be raised.

My MFW spreadsheet relies on the 20% figure remaining in place for the forseeable future but I just realised that the monthly amount I am paying (the minimum payment) is likely to decrease by some amount once I drop to the SVR next year.

My questions to you all are:

Q1. Do we have any leverage over defining the amount of the minimum payment as I would like to keep it at it's current level (or even raise it??)!

Q2. I am expecting a NO to Q1 without me or C&G modifying the payment term of the mortgage. True or False?

Q3. Has anyone heard anything concrete from C&G regarding their intentions for the 20% repayment ceiling in 2012?


Many thanks in advance for your feedback and support. I love this forum.

Answer 1:
The answer is yes. You can do this in a few ways. The most straighforward way is to formally change the payment term of the mortgage - more easily done for some products over others it seems. This can dramatically increase the payments but on the downside ties you in to making that payment each month.

Answer 2:
True

Answer 3:
It seems there will be no repayment ceiling for SVR mortgage holders - certainly for 2012. I could be wrong, but I think at the moment it stands at 20% for SVR mortgage holders.

One interesting point cropped up - it seems you can choose whether an overpayment is recorded as an "overpayment" or as a "capital payment". One major difference is that the capital payment route means no "buy ahead" option for future mortgage payments. Thus you are committed to meeting the minimum p[ayment each month. With an overpayment account, you can take a payment break and the bank will draw down on the money banked in your overpayment account to meet the minimum payment for that month(s).

So if you had a 100,000 mortgage and had 100,000 in your overpayment account, I was told the mortgage would be closed and paid off. Secondly, interest is only charged on the difference between your balance owing and your overpayment balance so the impact on interest charged is the same for a Capital Overpayment vs an Overpayment.

Does anyone know of the reason(s) to opt for a Capital Payment over an Overpayment when paying more than the minimum each month?