Overpaying. Advantage of bank fixing monthly payment?

KTF

Hi all...

I have just switched my mortgage from Halifax to HSBC. Previously I was paying Halifax by standing order as everytime I made an overpayment they sent me a letter saying that my monthly payment had gone down as a result (which changed the direct debit amount every month) as their system couldnt 'cope' with the overpayment and recalculated my monthly payment instead.

Having switched to HSBC and asked them to keep the monthly direct debit payment fixed (which they said they had done), I made an overpayment and the other week received a letter to say that my direct debit had been modified as a result

So my question is, is there any point in calling them up again and getting them to (try) to fix the direct debt amount as I will be rounding it up with the overpayment so I end up paying the same amount every month anyway.

Other than me having to manually change the amount I overpay each month to keep the total the same (assuming they keep reducing the direct debit with every overpayment) is there any other advantage to them fixing the direct debit amount?

redapple1

Interesting to know thats what Halifax do.
I want to overpay my mortgage (once it starts) and want to reduce the term not the monthly payments. Seems I might have trouble.

dimbo61

I have a static mortgage payment with YBS every month and overpay more every single month

james3333

redapple1 wrote: »

Interesting to know thats what Halifax do.
I want to overpay my mortgage (once it starts) and want to reduce the term not the monthly payments. Seems I might have trouble.

i have a halifax mortgage and have never had this issue.
phoned once and job sorted.:money:

SandC

Me too, I overpay by standing order to my mortgage account to Halifax. That way I can vary it, lower it, cancel it without affecting my ordinary monthly direct debit payments, which stay exactly the same and I can see my outstanding balance reducing when I look online.

20vt-rs

I'm with HSBC, I have asked them to keep my monthly payments at a fixed amount every month, they amended the DD and now my payment is the same every month, is that what you want? I'm overpaying at the moment and on a tracker, so if the BOE rate goes up the payment will stay set where I have it and the overpayment will just be less. It only becomes an issue if the BOE rate brings the total monthly more than what I have set (which would be if the BOE is @ 2.5%), then I'd revert to the standard min payment. Hoping it will stay below 2.5% for a while! (I set this up via the call centre by the way).

KTF

Yes, I would like them to keep the DD the same so that I can fix the overpayment amount each month as well instead of having to manually adjust it each month.

They did offer to amend the DD to whatever figure I liked so I didnt have to manually add on the overpayment but that gives less flexibility.

I guess I have to ask them to fix it to the original amount as thats how they get round it.