Santander - overpayment query

Farel01

frazell wrote: »

No, once they have your instructions as to what they should do with your payment you can make them whenever you like.

Hi Frazell, I was told I needed to phone each month which is a major pain. The only insstruction form I found talks about overpayments of over £500, do you overpay that much?

Thanks! Sorry to hijack your thread OP

frazell

Hi Farel01, generally I do overpay significantly more than £500 per month and I do know that Santander set a minimum that you are allowed to overpay.

The way I have set my payments up is that I have a £200 standing order each month that is fixed. From there I have a "faster payment" which I vary depending on how flush we are. Usually we pay all of my partners salary as an overpayment if we can.

A couple of months last year however I reduced the overall payment to £415 (£200 standing order and £215 faster payment) as things were tight. No issues with this.

I recently called them and asked about changing the overpayments to reduce the term rather than my monthly payments and the operator said that I would need to maintain a minimum overpayment of £110. This is obviously covered by my standing order and appears to be the minimum for me (not sure what its based on).

Give them a call and speak to them about what you want to do, they are generally pretty helpful and can tell you your ERC limit, 10% remaining, min monthly payment etc.

To be clear, I do NOT have to call Santander each month and apply the payment. As I stated above, once they have sent you the form which gives them your instructions as to how the overpayment is applied, it is fully automatic until you decide to change it.