Why Can't I Manage My Mortgage Account Online?

Darlo_Gary

Hi Everyone

I recently visited family in Australia and started to compare how things work differently between the two countries.

When you take out a mortgage in Australia you can manage every aspect of your account online, you can see your current balance in real time, how much interest you are being charged daily and most importantly you are able to make additional payments there an then as your mortgage agreement allows, its like any other online banking account we are all used to from our current accounts.

You can also see when your mortgage is due to finish and any early repayment fees etc etc, the system also shows you what difference making over payments makes to the the amount of interest you'll pay and how much this would reduce your term.

My family have explained that because the system is so transparent and they can see every detail they have been able to actively keep an eye on their balance and whenever the opportunity arises can just dip in and pay a little more off the loan, it makes a huge difference in managing the debt.

How good would it be if we had this flexibility?

My view is that the reason we don't have this option is because the banks don't want us to, why would they want people paying off their loans any earlier than absolutely necessary.

We are so used to only receiving a mortgage statement once a year and I suspect the banks like it that way.

I'm probably not alone in sometimes wondering what my current balance is or occasionally when I have a little extra cash that I might like to pay it off the mortgage however in order to do this you are forced to dig out your papers, account numbers etc and physically call someone.

Isn't it about time the banks stopped taking us for mugs and provide this type of transparent service rather than keeping us in the dark on what is the biggest debt any of us are most likely to have

Any thoughts anyone?

kingstreet

So every lender in Australia offers that?

Some lenders in the UK certainly offer the things you've mentioned and I suspect inability to do so is more about technology issues than any deliberate attempt to stop people paying off their mortgage early.

How does the market for different products/rates compare in Australia? If it has a more simple market for products centred on a variable rate, no penalties (CAT standard here) life would be much easier technologically, but chances are the rates will be higher as a consequence.

Darlo_Gary

I obviously can't account for every lender in Australia, just my families experience, I did get the impression it was common practice though.

There are lots of complex products that can be managed online, why should mortgages be any different?

Banks bend over backwards to entice us online when it comes to most other types of accounts, its saves them having to have more people in call centers etc. I can do all sorts with my current account online including paying other institutions or bills to external parties, although I agree Mortgages can be quiet complex its just a case of doing the math, they don't have to worry about the added complexities of having to make mortgage accounts work with third parties

I don't buy the technology argument sorry

nidO

I'm not really sure what point you're making here as it seems to be based on 2 fallacies:

1) That every bank in Australia offers all these wonderous features
2) That no banks in the UK do.

I can't speak for the first but the second is most certainly not accurate, I have 2 mortgages with 2 different lenders (Nationwide and RBS, so not exactly small lenders) and both their online systems provide me with every feature you've mentioned with the exception of telling me in advance what reduction in interest making an overpayment would have (which is maybe 5 seconds with a calculator).

Maybe your lender's just awful.

pmartin86

I'm with HSBC, and while I dont get daily interest and real-time over-payment information, i can view my statement online alongside my current account, shows my monthly payment, monthly interest applied and allows me to overpay should I chose to. More toys might be nice, but aren't really needed, its easy enough to know "Overpaying = less interest"

Paul

Thrugelmir

Hinckley & Rugby Building Society offer an online service which I use. Not sure what the fuss is about. As very little account management can be done. Used to maintain a spreadsheet which was accurate enough month to month.

If it meant a cheaper product I'd prefer an offline service personally. As building and maintaining software applications isn't cheap.

libf

I can see my balance only, updated each day, and I can make overpayments. Not interested in doing anything else...

GoldenShadow

Natwest show it like a bank account and I can make an additional payment just like I can transfer money into our savings. Interest gets added on in a lump sum a week before our payment is due to go out. I can view policy details etc online too.

Not sure who you are with, but they aren't all behind the times.