Mortgage Overpayment advice

DiegoGarcia

Hi folks,


Just looking for some feedback on my current situation, I have a 70,000 outstanding mortgage with the Halifax. I went into the branch yesterday to make an overpayment of 4,000 hoping to reduce the term and not the monthly payments!!! This is also the only overpayment I have made this year (allowed 10%)
When asking the lady if this automatically reduced the term, she said she wasn't sure and would ask the mortgage adviser. The mortgage adviser came back to me and said I could make the overpayment today and book an appointment for a mortgage review in order to reduce the term. I guess what I'm really asking is, is this the normal procedure for making lump some overpayment? This is the first overpayment I have made and am quite excited about making some more for next year.

freida20

no - i make overpayments and have never been told to see mortgage advisor. i can make overpayments anytime i like but do need to contact them to let them know if i want reduced payments or reduced terms. now i've done it more than once it is set up on my account what my preference is.
I have made overpayments with my previous mortgage provider and my current one (santander)
I guess perhaps the amount of overpayment you have made and it being in branch your provider either want to make sure they are offering you the best service or they want to sell you one of their other products/investments!
Good luck with your overpayments - that is a fantastic start!

DiegoGarcia

Thanks for your reply Freida, I will ask my mortgage adviser next week if I can have my preference set up when I make an overpayment in the future. I am paying a very small monthly amount into my mortgage, but I would like to up my monthly payments by an extra £100 hopefully I won't have any hassle trying to do this.

Lokolo

https://www.halifax.co.uk/mortgages/mortgage-information/overpayments-underpayments/

Lump-sum overpayments

What are they?

Lump-sum overpayments are when you pay off part of your loan using a one-off payment.

How do I make one?

You can call into your local branch or write to us enclosing a cheque. You need to tell us if you want us to use the money to reduce the monthly payments by keeping the mortgage term the same. If you would like to permanently reduce the remaining mortgage term you will need to speak to a qualified mortgage adviser, who'll discuss your needs and circumstances with you.

Different providers will have different processes.