Advice please on overpaying Northern Rock mortgage

teapot2

We have a repayment mortgage with Northern Rock [fixed rate for 2 years] with 13 years to go and plan to try and make overpayments when possible [mortgage allows this]. This is our first mortgage and as we were both aged over 50 when we took it out, would like to be rid of it before we are pensioners!!!

Didn't have any spare cash to make overpayments in the first 2 years before we remortgaged so new to this, wondering when we make an overpayment do we need to specify that it goes towards reducing the sum borrowed rather than on interest [if this is possible]?

Any advice or experiences and anything else to look out/ask for would be helpful as we want overpayments to have the most impact they can.

TIA
Teapot

comping_cat

I have a repayment mortgage with the Northern Rock, fixed for 5 years (1 1/2 years into it) and i just pay whatever i can, whenever i can. It automatically takes it off what i owe, but also gives me the option to borrow back any monies that ive overpaid, should i need to. I started overpaying last March, and my repayments have stayed the same - i didnt have to advise them otherwise.
Not sure if you have the same type of mortgage as me, but if you have, its a really easy and convienient mortgage to have!!!

The interest will automatically be reduced when the amount owed is reduced.

teapot2

Hi Catowen thanks for the reply, sounds like the same or if not a very similar mortgage. We can also take back overpayments at some point but would very much hope to not be doing that! If its not too nosey a question, how do you make the overpayments? do you just send a cheque to them or are there other ways of doing it?

Hope to raid the mortgage pig, cat and cow later in the month and send off the proceeds :j

Thanks Teapot

chris123

I hope to start overpaying my mortgage soon and what I was planning to do was call the lender double check with them how to do it, then over pay each month through Internet banking. With Barclay's for example, once you have made one payment with a reference number, it will store it and you can just go back as and when you like, then every time you over pay it will go straight to your lender, my financial adviser told me tonight that if I overpaid by as much as £200 a month I will save my self £75.000 and repay 8 years early, frightening don't you think. Remember though you can only pay back so much a year so when you speak to your lender double check that as well.

regards chris

comping_cat

I have on line banking, so anytime i have anything to pay into my mortgage, i make a transfer from my account. If you phone Northern Rock, they will give you the sort code, account number and reference number you need. Like Chris, these numbers are now stored in my banking system (Lloydstsb), so its really easy.
I have unlimited overpayments, so dont need to worry about how much i pay in.

teapot2

Thanks to you both, have been thinking about setting up on-line banking so might look into that. Quite excited about the idea of making an overpayment [sad I know] and have got OH keen on the idea as well.....

comping_cat

The good thing about doing it on line, is that you can send as little, or as much as you like - i have sent £12 before!!!! But like Mr T says, every little helps!!!!