Just About To Make Our First Overpayment

mark_curd

Hi All,

We are just about to make our first overpayment towards our mortgage. :j I just phoned Natwest our provider to find out how to go about doing it. I was under the initial impression that if we are in a position to make overpayments we are not wanting to have the monthly DD altered, but it seems that if we make overpayments it won't reduce the term amount it will reduce our monthly DD.

Can anyone tell me if their lenders are the same? is this to be expected?

Thanks in advance

Mark

Phelpsie001

When I overpay I specifically state that I want my repayments to remain the same and for my term to be altered.

I was under the impression that they are happy to do as you ask, however some operators get confused and just say what they think to be true, rather than what is actually true

mark_curd

So I should be able to have the overpayments alter the term? Are my lenders obliged to do this or can they turn round and say they will only make the change to the DD?

tiggerpud

I'm having this same problem with Bank of Ireland (was Bristol & West).

Despite being told on the phone it was all fine as long as I phoned each month to ask for the extra payment to be "allocated", things are going from bad to worse!

First they just sat on the payments and did nothing with them - even though I kept phoning.

Now, they have reduced my DD by the amount of the overpayment!

There is no contractual reason why I can't do it, I just can't get them to get the admin right! I'm now just going to stockpile money until I get a decent amount and then pay off a lump sum rather than a regular overpayment. Something makes me think they son't want the mortgage paid off early! I even put in a formal complaint and they paid me £50 for my inconvenience!:rotfl:

misscousinitt

I actually take mine into the Halifax - only had to tell them once.

Froggy-G sends a cheque and a letter with his to make sure that its allocated right. (the letter he writes is on his thread).

Hope you manage to get it sorted and welcome to the MFW board.

quintwins

wow i never relised it was this much hastle to overpay i just assumed you need it online like a transfer

*makes a mental note of making sure when she finally gets a mortgage that she checks a zillion times it's easy to make op*

mark_curd

Thanks for the replies.

I think I will pop into our bank to see if it can be done there and make sure they offset it against the term.

After this lump sum payment I am going to start a standing order each month for regular overpayment.

CathT

I'm with Halifax and I just told them once to ask them to reduce the term not my repayment amount.

I'm not sure which other MFW's are with Natwest to ask their advice but am sure someone must be.

mark_curd

So made our first overpayment today which I'm really pleased with. Was able to offset it against the term for a small admin charge to update mortgage term, so thats made me happy :j

Just got to wait now over the next week for the updated papers to come through which will show the new balance and term but they told me that it will reduce it by 4.5 years

I now want to make regular payments but there will be an admin charge each time if I want the term adjusted or no charge if it just adjust the monthly payment, so looks like I will have to pay a small charge once a year and get them to adjust the term. Anyone else with Natwest and can comment on this?

Mark

katsu

I am with santanduuur and they don't charge but require min £500 lumps. Check your mortgage docs to see what the written agreement is on OPs. Santander just wrote letters saying it had been applied and the full details came with our annual statement months later.