Woolwich Mortgage Payments

marlasinger

Hi all,

Just a quick question, as the Woolwich call centre is now closed.

We made a 10% overpayment on our mortgage two months ago, but the subsequent mortgage direct debits have not been reduced. When I ask for my balance, on the automated 'call-centre robot', the balance shows that my overpayment has been taken into account. Do I need to specifically ask them to reduce the monthly DD, or to reduce the term?

I'm just a bit concerned that the overpayment is sitting in some other pot, rather than reducing the capital. Is there some 'magic catchphrase' I have to tell them to get them to apply the overpayment against the capital (if they haven't already done so).

Thanks,
marlasinger

jonathanmiller

You have to ask them to make the amendment to the payments.

For calculation purposes, it is against the mortgage balance the moment it is cleared funds so you havent lost out. You've actually been making even more overpayments by them not reducing the direct debit for the last 2 months!

marlasinger

Thanks for this.

I shall get them to reduce the DD I think. I'm a bit worried that if I keep the DD the same, and will be therefore overpaying, I will possibly incur the early repayment charge, as I have already repaid the 10% I'm allowed to, in my lump sum repayment this year.

blueberrypie

marlasinger wrote: »

Hi all,

Just a quick question, as the Woolwich call centre is now closed.

We made a 10% overpayment on our mortgage two months ago, but the subsequent mortgage direct debits have not been reduced. When I ask for my balance, on the automated 'call-centre robot', the balance shows that my overpayment has been taken into account. Do I need to specifically ask them to reduce the monthly DD, or to reduce the term?

It's already been applied against your capital (and is thus automatically reducing the length of time it will take to pay off your mortgage). Woolwich recalculates your payments annually, so you wouldn't see a difference in your direct debit yet unless you phoned them and specifically asked them to recalculate your payments now.

blueberrypie

marlasinger wrote: »

Thanks for this.

I shall get them to reduce the DD I think. I'm a bit worried that if I keep the DD the same, and will be therefore overpaying, I will possibly incur the early repayment charge, as I have already repaid the 10% I'm allowed to, in my lump sum repayment this year.

If you want to make overpayments of more than the allowed 10%, ask them to shorten the term of your mortgage. This will increase the amount you pay each month but without incurring any penalties.

They'll even calculate on the phone what your new payments would be for various terms, so you can decide how much you're comfortable with.

You can increase the term back up to the original term anytime you want, so you're not stuck with the higher payment if you want to reduce your payments later.

marlasinger

Thanks blueberrypie, that is very helpful.

getmore4less

marlasinger wrote: »

Thanks for this.

I shall get them to reduce the DD I think. I'm a bit worried that if I keep the DD the same, and will be therefore overpaying, I will possibly incur the early repayment charge, as I have already repaid the 10% I'm allowed to, in my lump sum repayment this year.

Normal payments should not incur any charges