Overpayments

Debtslayer

Hi
Sorry if this is a daft question. But, when requesting to increase your monthly mortgage payment (monthly overpayment) do lenders do another credit check / affordability check or do they just increase as per your request?

betmunch

If you are requesting an increase to the contractual payment you should be subject to an affordability check.

If you set up a standing order to make overpayments you should not

AnotherJoe

As said in the first reply, you should simply be able to set up a standing order to overpay. Check there aren't any penalties for doing this, eg there may be a maximum amount per year you can overpay.

Also, check or arrange that the overpayment doesn't reduce the monthly DD payment otherwise you'll have to increase your overpayments to compensate.

The big benefit of doing it by standing order as an overpayment is flexibility. If you arrange with them to change the terms and get into financial difficulty and wish to go back to how you were that it will be far harder than simply stopping a standing order to which you are not committed !

saraside1621

I've been thinking about doing this and wondered the same thing so good to know.

densol_2

I just called up Nationwide and asked to make £500 overpayments. They amended my direct debit and sent a letter confirming and stated this can be cancelled at any time. I also elected to reduce the term for each overpayment.

Mahsroh

I've made overpayments both by standing order and by increasing my monthly DD and never have by bank (Halifax) done a further credit check on me.

I find standing orders better though as it's easier to cancel / amend at short notice should you need to.