Mortgage company won't accept monthly overpayments

Maunite

Gentlemen,

I have a mortgage with mortgage express with 14 years remaining. I would like to increase my monthly payments in order to reduce the term and accordingly requested from the company in indication of what the reduced term would be with a monthly overpayment of £100.
I was consequently informed that Mortgage Express do not accept this type of overpayment. The only way would be for me to manually send a cheque to them every month (for £100) with a covering letter stating that the enclosed cheque should be credited to my account. They in turn would then write back to me, every month, with a revised balance on my account however with no reference to any reduced period.
This I felt was unacceptable particually when having checked, I cant see any other company that restricts this facility.
Any help or advise on this matter would be gratefully appreciated.

Kind regards

Mauntite

Thrugelmir

Mortgage Express is part of Bradford & Bingley, which was nationalised in 2008. Now forms part of NRAM.

No longer functions as a normal lender as its role is to run the mortgage book out to closure.

So your only option is to accept what they are offering.

Leon_W

It depends on what your original mortgage contract stipulates. They will either allow overpayments or they wont so you'll have to refer to that.

Lenders to this day will not allow overpayments on some of their mortgage products so it is not as uncommon as you think.

Catslovelycats

That's frustrating for you, but you do have the option of posting a cheque each month, so as I understand it, you can overpay, it just has to be done 'manually'. Not ideal in today's technological age, but I don't think there's much you can do is there??

pinkteapot

Well, OP could move mortgage to another lender, but obviously that depends on LTV, early repayment charge, terms of existing mortgage, etc.

OP - if (or when) you do look at changing mortgage, check the restrictions on overpayments in terms of (a) size and (b) how they can be done. Every lender is different in this regard.

beecher2

Were you wanting the company to assume that you'd make a £100 overpayment every month and cut the term accordingly? I don't think any lender would do this, but you should be able to do it the other way, ie cut the term down to a length which adds £100 to your bill. It does mean that it won't be flexible but is an alternative way of doing it.

Oneday77

Why don't you allow your monthly Direct Debit to come out automatically each month, say the 1st and then send £100 by standing order on the 2nd.
You might be finding they will accept over payments but they will not raise your DD, hence the cheque suggestion.
By over paying your balance will reduce, less interest will be paid and in the long term the mortgage free date will creep closer automatically. The lender doesn't have a contract saying you will pay £100 extra each month for x months\years so they can't quote how long it will take to clear officially.