am I right in saying this?

t_kaay

About to start my overpayments of £150 per month on our mortgage. The mortgage is with santander and I need to go in branch and pay the overpayment every month as they can't set up a standing order for some reason. I have £110,000 outstanding with 21 years left. They told me to also call each month to make sure the money has been credited correctly.

Now, am I right in saying I should ensure the overpayment is credited to only the capital outstanding as opposed to the whole capital/interest?

Thanks all.

Mrs_justjohn

Any overpayment should come off the capital. Do you have a repayment or interest only mortgage?

Sepa74

It should be credited to the Capital, and you also need to make sure they reduce the term, not the monthly payments.

Best of luck with it all, and congratulations on starting your MFW journey.

diable

Cant you just do a bank transfer every month to your mortgage account?

t_kaay

its a capital and interest repayment mortgage with santander. i called them today to try and set up a standing order but they said the only way to do that would be to reduce the term permanently and increase my normal direct debit to the new amount. I want the option of stopping the overpayments if I need to.

Mrs_justjohn

t_kaay wrote: »

its a capital and interest repayment mortgage with santander. i called them today to try and set up a standing order but they said the only way to do that would be to reduce the term permanently and increase my normal direct debit to the new amount. I want the option of stopping the overpayments if I need to.

Then as suggested just make a bank transfer (not a standing order - although this can be cancelled if you need to) it will save you going into the baank every month to pay the money in and you will have an online record of the payment - much less likely to go wrong.