Overpaying Woolwich Mortgage from Barclays?

Kantankrus_Mare

Yes thats the way I think Im going to do it because then if circumstances change..........mortgage will be more affordable.

Have worked out how to overpay from my Nationwide account and can vary the over payments.

Have two parts to my mortgage as we took extra for deposit for rental.

First mortage is fixed till 30 sep 2015 @ 4.44%

Second is fixed till 31st Dec 2014 @3.87%

Im assuming I will be best paying extra off the first mortgage with the higher interest rate?

Not impressed with the bloke I spoke to on the Barclays help line as I asked him which I would be best over paying and he said the second one.

I didnt have all the details to hand at the time but have now got it to hand.

Maybe I just got a one off disinterested customer service person.

alfiesmum

We have a fixed rate with Woolwich. I overpay by cheque every time. Then when it shows as having gone from my account, I ring for a balance. I always opt for the automated service though, as I have trouble understanding the advisors, and they seem to have even more trouble understanding me (I blame Geordie parentage!). The automated service has a 'last payment' option, which will hopefully be your overpayment amount, and it also has a balance option, just to confirm it. Freephone number so very MSE too! 0800 022 4022.

My terms and conditions of the fixed rate state that overpayment do not automatically reduce the monthly payments, to do this you need to request at the time that it be used as a "capital repayment". It goes on to say that payments are re assessed in September, when statements are sent out. In reality however, monthly payments change every time you make an overpayment, UNLESS you request otherwise. Make this request, in writing, as clear, as clear as you can.

Having received such terrible customer service from Barclays/Woolwich is one of the driving factors in paying our mortgage off as soon as we can manage! Hopefully that'll be December, 19 years ahead of schedule.

getmore4less

Most likely it will be the one with the highest rate.

What are the followon rates on each? It could make a difference if one is much lower than the other.

Kantankrus_Mare

getmore4less wrote: »

Most likely it will be the one with the highest rate.

What are the followon rates on each? It could make a difference if one is much lower than the other.

Hmm good point.............will check on that.

So just awaiting for my card reader from Nationwide to make one off payments to Barclays and then I will commence.:T

Will make a small payment first just to make sure it goes through ok then I can make a one off payment of 1000.

After that it will be approx 60 a month unless I make some extra money from somewhere.

Not a huge amount compared to what some over pay on here but its a start in the right direction and hoping once OH sees how much interest we might save.......he will come on board as well.

He leaves it to me really and Im sure would rather find another home for any spare money we have.

Well he's not having it!! :rotfl:

Just one other question.

Is there a best time of the month to make an over payment?

Same time as normal mortgage payment is taken or is some other time better?

Thanks for everyones help.

Cuidadosa

OK, I'm on the same boat! And I'm not fully following the discussion, sorry!

Lifetime tracker (no offset so I can't see it online), we pay 600, we have the maximum term (I guess that means, minimum monthly payment).
I think that what we want to do is to leave that "minimum MANDATORY payment" as it is but start overpaying by 200/month (so 800 in total).
Is this the "default" option?
Basically, I don't want to end up finding out that I'm required to pay 800 if circumstances change and we can't pay those 200 extra every month.

How should I proceed? What should I ask for?

Cuidadosa

Kantankrus_Mare wrote: »

Just one other question.

Is there a best time of the month to make an over payment?

I think that because interest is calculated daily, it doesn't matter. It does matter if it's calculated monthly and particularly annually, but I'm quite sure Barclays calculates it daily.

Kantankrus_Mare

Cuidadosa wrote: »

OK, I'm on the same boat! And I'm not fully following the discussion, sorry!

Lifetime tracker (no offset so I can't see it online), we pay 600, we have the maximum term (I guess that means, minimum monthly payment).
I think that what we want to do is to leave that "minimum MANDATORY payment" as it is but start overpaying by 200/month (so 800 in total).
Is this the "default" option?
Basically, I don't want to end up finding out that I'm required to pay 800 if circumstances change and we can't pay those 200 extra every month.

How should I proceed? What should I ask for?

I just rang the helpline number and said I wanted to over pay.

He rattled off a few options but the one that works best for me is to pay one off overpayments by standing order from my nationwide current account.

If you ask they will give you a sort code and account number which is specific to your account.

Hope that helps?

Cuidadosa

Thanks KM,

What is the helpline number?

I think standing order is the way forward for me too. And actually, I've worked out that what I want to do is to "reduce the term", so I'm paying 800 every month and in case of emergency, we can always ask to extend the term back again

Cheers!

Kantankrus_Mare

Help line number is 0800 022 4022

getmore4less

Cuidadosa wrote: »

Thanks KM,

What is the helpline number?

I think standing order is the way forward for me too. And actually, I've worked out that what I want to do is to "reduce the term", so I'm paying 800 every month and in case of emergency, we can always ask to extend the term back again

Cheers!

But what if they say NO.