Overpaying mortgage charges

ptkloon

Hi guys,

I have a fixed rate mortgage with Cheltenham and Gloucester which is coming to an end. I have overpaid several times over the 3 year term, each time I overpaid it cost me £20 admin fee.

Does anyone know if I want to make more regular overpaymentswhen the fixed term ends if it will cost me £20 each time. The rate I am on is 5.85, but this will be changing to 2.5%(Standard variable rate) so I will be able to afford at least an extra £200 a month.
If I had to pay the £20 extra each month, would I be better just saving this £200 per month and making a one of payment, yearly for example,of £2400?

wiwo

very interested in how they justify 20 pound charges for an overpayment ( i know this topic was done to death in 2008, but are they still doing it now?). in the age of computers this really should not be costing them that much in human labour.

it is not mentioned on their web page (i'm not allowed to post links but you can search google for "cheltglos fees and charges" page)

before you take a decision about how to pay more in (bit by bit or lump sum) i would think you have grounds to question why it is not listed there, as if i took out a mortgage with them tomorrow and it was not explained and yet suddenly was being charged i would strongly object !

my own mortgage is a tracker with unlimited overpayments (with another bank). my bank are offering some "fee free" ones at the moment. if the 20 pound a time charge still applies and it doesn't suit your needs (i.e. you want to keep dripping small amounts of overpayment into the mortgage) then it might be worth considering changing product now that you are free of the fixed term, especially if you have a low LTV ratio.

i am by no means an expert on these things though.

kaych

that's outrageous! £20 each time? i make my overpayment online (HSBC), it's so easy. I just transfer whatever the amount I feel like, sometimes as low as £1...

How is your overpayment done? do you do it with cheque?

ptkloon

kaych wrote: »

that's outrageous! £20 each time? i make my overpayment online (HSBC), it's so easy. I just transfer whatever the amount I feel like, sometimes as low as £1...

How is your overpayment done? do you do it with cheque?

Yeah at the moment its by cheque but I was hoping to set up the direct debit to take out the extra each month. The first couple of overpayments I made over the phone, but then they said they stopped doing that and I had to send them a cheque each time which is a bit of a pain as I can never find my cheque book!!

originator

I pay by cheque to nationwide,there is no charge for any overpayment up to £500 per month,can't imagine why the method of payment would influence it tbh.

kaych

at work, when we need to make a payment to the environment agency, it costs £20 more if the payment is made by cheque or £5 by credit card...
anyhow I think making an overpayment by cheque and being charged £20 for doing that is horrible...
what is your LTV? can you move after your fixed?

pawlala

how do you know you're charged £20 by C&G? I made an card OP with them a couple of months ago and the letter I got didn't mention anything about charges. Neither did the operator.

ptkloon

pawlala wrote: »

how do you know you're charged £20 by C&G? I made an card OP with them a couple of months ago and the letter I got didn't mention anything about charges. Neither did the operator.

It says so on the form thatI have to send with the cheque

moggitymog

on our documents with C&G it states £10 for each overpayment, but when I asked on the telephone to them I was told there was no charge and they have never charged us anything

pawlala

well I have not been charge for the last two debit OPs I have made this year. I have never OPd by cheque. Maybe this is it?

£10 used to be the charge in 2009/10 for all type, maybe they have changed their T&C without telling people?

ptkloon

My fixed term comes to an end on 1st September. It goes from 5.85% to 2.5% so jumps down just over £200. (From £943 to £743) I would like to continue paying off at least what I am paying just now - but can afford an extra £200 on top, meaning I will overpay by £400 a month (while it stays at 2.5%)
I also have approx £5000 available as a one off payment - would this be better done now or when my existing rate expires?
My mortgage is currently approx. £122k and I have 17 and a half years left on it

Also, part of the mortgage is a sub account with only about £1000 to pay on it - can I close this when the fixed rate finishes so that I only have the one account. Why is there a sub account?