Overpaying with Santander

edited 21 June 2013 at 9:10PM in Mortgage-Free Wannabe
2 replies 373 views
NikkitalouNikkitalou Forumite
1 Post
edited 21 June 2013 at 9:10PM in Mortgage-Free Wannabe
Hi,
Hoping for a little advice regarding the following. We have just moved house, closing our mortgage with Nationwide and taking out a new one with Santander. Our current mortgage is £1034 over 30 years, we took out the mortgage over this term with a view of paying it off in 15 years, but without the tie of higher monthly repayments should our circumstances change.
We are looking at overpaying £100 for the next 12 months, and then £550 per month after this. Last month was our first payment and we paid the mortgage payment and then the £100 extra. Upon us paying this we received a letter from Santander stating that because we havent paid enough to reduce the term they would be lowering our monthly mortgage repayments to £1033.46. I know this is only a small amount but over the years this basically cancels out our £100 overpayment.
I phoned them and asked that they leave our direct debit at £1034 as previously arranged but was told this was not an option. She also informed me that £100 a month was not going to make much of a difference (ridiculous as this actually reduces our mortgage by 4 years!!). She also advised that we save up the money for a year and pay in one lump sum, I stated I was not happy to do this as we effectiviely miss out on a year of reduced interest, she advised that I would earn equivilent banking the money ( I worked this out to be around £1000 so not very likely).
Has anyone else had the same problem with santander? with Nationwide we just overpaid however much we wanted each month, the direct debits stayed the same, and then at the end of the product term they would take any overpayments into account.
The way santander are reducing my payments, means that the overpayment effectively counts for nothing and each £100 I make looks like it will be lost in their calculations. They were unable to tell me exactly how much of an overpayment I would need to make in order to bring it down by a month and keep the direct debit the same.
HELP!!
Nikki

Replies

  • elantanelantan Forumite
    20.5K Posts
    Part of the Furniture 10,000 Posts
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    Could you maybe add to the £100 the difference of what they take off ? A bit of a hassle I know ... I'm with nationwide and wouldn't change from them as they are user friendly ( well for me anyway)
    march 2011-july2019 8 years and 4 months ... or 100 months and counting
    "what would you do if you knew you couldn't fail.... enjoy the adventure" " to my own self be true"
  • SG27SG27 Forumite
    2.8K Posts
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    Call them again. You might speak to someone else who actually knows what they are talking about!
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