GUTTED! Overpayment to Bank of Ireland???

ViolaLass

You can probably earn more than 2.68% on your savings and would therefore be better off not making overpayments at all.

Also, are you paying into a pension?

Unicorn_cottage

Hey ViolaLass

Yes I can earn more on savings BUT I know me and any payments into reducing my mortgage will be money I don't spend on other stuff. Not frivolous stuff but ya know a new kitchen etc!

I am great at paying off debt but unfortunately bad at saving.

Do I have a pension - hmmmm of sorts. A little here, a little bit there - nothing much to speak off but I come from a background where the pensions you pay into for a lifetime don't end up being what you expected.

ViolaLass

Unicorn_cottage wrote: »

Do I have a pension - hmmmm of sorts. A little here, a little bit there - nothing much to speak off but I come from a background where the pensions you pay into for a lifetime don't end up being what you expected.

I can understand that you may have heard some horror stories but if you don't pay anything in, you really won't get anything out. And then what will you live on come that time?

Unicorn_cottage

ViolaLass my father in law had part of his private pension taken and my mother in law is a WASPI. I can't trust them. I wish I could.

Thrugelmir

Unicorn_cottage wrote: »

ViolaLass my father in law had part of his private pension taken and my mother in law is a WASPI. I can't trust them. I wish I could.

What do you consider to be an alternative then?

Unicorn_cottage

I do have a small pension I just don't trust them and I think that is a reasonable stance based on my experience.

ViolaLass

Unicorn_cottage wrote: »

ViolaLass my father in law had part of his private pension taken and my mother in law is a WASPI. I can't trust them. I wish I could.

WASPI = state pension, not private.

I don't know what happened to your FIL, of course, but that's one story. One single story.

What will you live on when you retire?

A_Frayed_Knot

Unicorn_cottage wrote: »

My Keyfacts statement regarding overpayments says the below and as far as I'm concerned I should be able to make "lump sum" payments of £500+ and not have to endure affordability checks.

As far as I know - this would be correct - the only time you endure affordability checks is when you change/re mortgage your mortgage.

"Overpayments are permitted on this mortgage. Yay !!!
A lump sum overpayment can only be made by cheque and is any amount that you pay to us in addition to the monthly payment due. When we receive a lump sum overpayment, we recalculate the amount you owe and the amount of interest you pay with effect from the following day. This means you get the benefit of paying less interest straight away.

Sounds good to me - you o/p say £500 - you want this to come off straight away, so you pay less interest from day 1 from o/payment.

Regular overpayments can only be made by standing order and are amounts that you pay to us each month in addition to the normal monthly payment. When we receive a regular overpayment, we recalculate the amount you owe and the interest you pay from the first of the month after we receive the overpayment. The amount you owe will not be reduced immediately.

That one a bit strange - seems you are better o/p now and then rather than the same amount each month - unless I've read it wrong."

I do think you seem to be worrying too much - I could be wrong - but were you thinking along the lines that for each o/p you made that the term would be reduced? or are you mad that they are reducing your payments each month - I know mine didn't until my fix rate finished, they then recalculated my monthly mortgage payment (reducing it :mad:) to make sure I still had the same amount of years to go :mad:, so I remortgaged and reduced my mortgage by 6 years :j - that'll teach them to take into account all my o/p's I had made previously
Usually they wait until your fixed deal is ending, that's when you can decide to reduce the years (because they won't - not beneficial to them) and if you reduce your years - up your payments and go into a new deal that's where the affordability will come into it.

At least that's what happened to me - that said - I'm not with the Bank of Ireland.

Having said that I do know your train of thought and did wonder if I had missed a trick :eek: but on second thoughts - I think not.

Tropically

That's the kind of thing I will be doing A Frayed Knot. The annoying bit is the emotional response to paying off £500 from the mortgage, and instead of seeing the term go down, you just see that your payment is reduced by a few £ every month. It takes some of the satisfaction away.

It does also mean that you do pay more interest than if the term was reduced, but it is a very small difference.

Unicorn_cottage

A Frayed Knot - I know I am overly worrying and need to crack on based on all the good advice above. It's just I have had a few issues recently with other companies recently (not mortgage related) and the amount of poor/incorrect advice you get from customer services has been appalling. I wonder how many people actually just give in? Tropically is correct too regarding the emotional response sometimes you just want to feel like you are "winning" and building a better future for yourself.