RBS mortgage overpayment in suspence account.

Ransoman

Hi,

On Friday I overpaid £400 into my mortgage account (RBS) in order to get my Loan to Value to drop to 70% in time for my deal change at the end of the month (fixed term ends). I did this in branch from my main account (all RBS).

I was told that the mortgage account cannot be paid directly into and the money had to go via a suspence account first. The teller at the bank said this would happen almost instantly and the account balance would be lower by the next day.

Checking today there is still no sign of the money in my mortgage account.

I will pop into branch tomorrow to sort this out but in the meantime, has anyone heard of this and do i need to give special instructions? I have googled suspence accounts and they seem to be a very American banking term and some sites suggest that the money doesn't get released untill the amount in suspence matches the monthly payment amount.

Thanks!

Thrugelmir

May well require manual intervention to process the credit. As it was the end of the month i.e. 28th . Most likely would have been very busy with people making overpayments.

Don't panic yet.

Dave_the_Ginger_Cat

Agree, and they probably get lots of folk doing this at month end. Your payment will have effect the day you paid it (value dated)

Ransoman

Thanks folks. I was a little concerned as I was thinking i would still be being charged interest on the full amount. I have yet to check my balance this morning so i don't know if it has gone through yet.

kingstreet

Did your lender ask if you wanted the overpayment credited to reduce the term, or to reduce the future monthly payments?

Some lenders do this, storing the funds in a suspense account pending instructions.

Scarlett_

If the funds are paid into a suspense account they are likely to be manually worked to apply it to your mortgage it can take up to 3-5 working days however when it is applied to the account it should be back dated to the date you made the payment. If you made the payment at the end of the month there will be a lot of credits to work through as most manual mortgage payers pay at the end of the month.

Ransoman

Thanks Folks. Checked yesterday afternoon and the funds have now reduced my capital so it has had the desired effect.

Of course i forgot about the interest payment on the 6th which will push it back to 71% LTV, My fix ends on the 1st of April so the new product should start on the 2nd? the next payment happens on the 1st so hopefully when I sign up for a new deal it takes the balance from the end of the fixed rate and not the current balance today.