Santander Mortgage Overpayments

ashleypride

We have a fixed Santander Mortgage (was Abbey), originally our payements were £950 per month, but for the last 2 years we asked Santander to increase our direct debit so we could make a monthly overpayment.

With our mortgage you are allowed a 10% overpayment...

"Up to 10% each calendar year of your outstanding mortgage balance as of 1st January, without incurring an early repayment charge"

I phoned them up to make a one-off overpayment and to check it wouldn't go over the 10%, they said that because our monthly DD was increased, we still have the whole 10% overpayment we could use. I don't want to be hit with Early Repayment Charges - does anybody know if this really is the case. (Not that I don't trust Santander....:rotfl: )

Also, later on if we want could we reduce back down monthly payments back down to the originally agreed amount of £950?

Dave_Ham

I cannot believe this is accurate, I cannot say definitively as sometimes they do weird and wonderful things.

If your payment is £950, then unless they have physically amended the term (which would account for the above) then you can move back to this amount.

The only way you can verify this information would be to go into a local branch and ask the mortgage advisor..

ashleypride

Dave_Ham wrote: »

If your payment is £950, then unless they have physically amended the term (which would account for the above) then you can move back to this amount.

Thanks, my credit report shows the higher amount, so yes, the terms been changed. Not exactly what we wanted, we only wanted to over pay by direct debit as they kept making a mess of where the one-offs BTs/cheques went.
Wonder how hard it will be to get them to agree to lower it back down...

Dave_Ham

They are a bit of a joke at the moment, as I was typing the last post I did fear that they may have done this.

They are hard work to deal with at the moment, although I would give them a call and ask the question..

Good luck

cb4fwh

I have a Santander 5 year fixed product.

I can overpay upto £499 per month (without any penalty), and then an additional 10% of the mortgage balance in January of each year if I choose.

Therefore, it sounds as though what they are telling you is correct.