Overpaying Santander mortgage?

Snakey

I've just opened a 123 account, and set up my direct debit to pay my mortgage.

I have some spare money each month, which I would like to use to overpay my mortgage for the time being. I'd like to do this by increasing my direct debit, for the cashback. But the bumf I got with the mortgage says you can only make overpayments by cheque, and it looks as if any overpayments made by other means will just reduce the amount they take the following month.

Does anyone know whether it is possible to set up regular overpayments (capital payments) via direct debit? I did a search but the only thread it turned up was quite old and didn't really answer the question, plus I know these sorts of company policies can change over time.

[ETA: it belately occurs to me that this might be more about mortgages than about bank accounts. Wrong section of the board, in that case. Oh well.]

Skinto_7

Pretty sure my Santander Mortgage requires any overpayments to be a minimum of £500 each overpayment, so think you will struggle with this as DD!

The cashback is also capped (im sure its to a monthly value of £1000 on mortgaes) so this might affect you.

Think you will need to get your mortgage T&C's out and have a look at what is specific to your deal.

Cheers

Snakey

I took out interest-only with the intention of making capital payments when I could (but wanted the option of not having to make any if I didn't want to), and it's looking like I can manage £500 a month extra for the time being. I'd still be under the £1,000 a month.

The mortgage agreement looks standard - I can make overpayments each year up to 10% of the outstanding balance, and they have to be at least £500 a time, and they have to be made by cheque.

What I was thinking was, that since the T&C's look like they date from before the 123 thing came in, perhaps they do now offer the option of making regular overpayments by direct debit but it jsut isn't reflected in the T&C's. Wondered if anyone else had tried this or whether I'm the first! It's not huge amounts, but if I have a choice of (effectively) paying 99% or payng 100% I'd prefer the former! (Also, the only account I have which has a chequebook is not the account that my money comes in to, so that's a load of faffing around that it would be nice to avoid).

jozxyqk

I make occasional overpayments to my Sant mortgage but in the form of online faster payments. First I phoned to ask for the account number / sort code / reference required. I also have to phone them to have the overpayment applied to the capital (and choose whether to reduce monthly payment or the term). Obviously these payments don't qualify for cashback.

I suggest you phone their mortgage centre to discuss your options - my gut feeling though is that amending the direct debit means you're looking at a product change.

dprice

I've got a Sant mortgage. I make faster payments each month and call then to have it applied. They then ask if you want to reduce the term or monthly DD. They have now brought out direct debit for this overpayment, when you call them ask for a form to be sent out. Number is 0845 6000 346. I generally over pay by £50 a month. Disagree with the views its minimum £500.


I don't get cash back on this but for the small cash back it would be I am not bothered as it gives you the flexibility to pay as little or as much as you want each month.

jozxyqk

dprice wrote: »

I've got a Sant mortgage. I make faster payments each month and call then to have it applied. They then ask if you want to reduce the term or monthly DD. They have now brought out direct debit for this overpayment, when you call them ask for a form to be sent out. Number is 0845 6000 346. I generally over pay by £50 a month. Disagree with the views its minimum £500.

Their literature states minimum £500 for overpayments but I've made several smaller payments (£100) over the past two years without any problems.

LittleMissGiggles123

I have just started making overpayments & when I spoke to an adviser I wrote everything down that they told me.


I can make payments online through my bank account but it can't be done on the 10 days before the DD comes out. So basically I'm ok to make an overpayment from day 1 to around day 17-18, but after that any money paid would be classed as part of the normal payment so it would just reduce the DD amount taken.


As well as that, when I make an overpayment I have to ring them to tell them it is to come off the capital.


I have had the form sent to me to complete so that I don't have to make the phone call every month, but this states in the small print 'minimum £500.00', so at the moment I'm sticking to the way I do it. I do keep meaning to query it with them but keep forgetting!


You won't get cashback though as it's only on the Direct debit payment that the cashback is earned. It is also only paid on amounts up to £1000, but my mortgage plus overpayment is below this anyway so if they ever do allow the DD facility on overpayments hopefully I'll earn some cashback on that too..

seb66

I have an issue that may/not have effected a few people on this thread.

I chose to overpay on my mortgage (as advised by mortgage adviser from abbey now Santan, as little as 50£ p/m, what ever was left over each month)

At no point does it state Min500£ in my terms. I have just seen this thread now & their updated terms/cons. It now states 500£ per overpayment deposit? but is unclear, could this be divided up in 10 monthly payments of 50£ for example? there is no information on their website and is not in my paperwork.

However, now, having over payed one month 300£ (two deposits of 150£ each time) of off the capital having notified them over the phone, in turn reducing the term, my monthly repayments have gone up, from 817 to all future payments of 820£. At no point did they state 'you cant deposit lower than 500£ in one transaction or that i need to make 500£ PCY'

What is going on here? has anyone else experienced this? I intend to call them Monday...What are the Min charge penalty if there is one? again there is nothing stating the repercussions....

Any info would be much appreciated.

anoncol

The pound sign goes in front of the amount btw, not after.

tommer82

Just got off the phone with them:


£500 a month or over.
£500 is the minimum per month if you want the money taken out of the capital.

If you pay £500+ you have 2 options... you either pay it and phone them each time and tell them you want this money to be used against your capital or request a form that will state you wish every £500+ payment be used against the capital. This payment must be made at least 10 days before the mortgage direct debit is taken. E.g. mortgage DD is taken on the 20th, make sure you get the overpayment in by the 9th.

Under £500

When you pay in under £500 this overpayment will be used as a credit note to your next mortgage DD.

What you could do is if you were planning to over pay £100 a month, just save it up for 5 months then pay it in (and then call them or fill in the form as mentioned earlier).

My scenario, i was planning on overpayments at £300, so I can just pay in £600 every two months instead.