Lump sum overpayment: which option will TSB default to?

Lungboy

I just paid a lump sum off my mortgage with TSB. However, due to their computer problems, I was unable to make the payment at TSB's end and instead had to send it from my other bank account. This meant that there was no opportunity for me to discuss what I wanted TSB to do with my mortgage after the lump sum. From their website, it says that the options are:

Keep paying your current monthly payment so that you repay your mortgage sooner. However, when we next re-calculate your monthly payment, for example at an interest rate change, we will set the new monthly payment to a level that will repay your mortgage over the current mortgage term.

Or
Ask us to re-calculate your monthly payment immediately, so that you get to reduce your monthly payments but still repay your loan by the end of the current mortgage term.

Or
If your mortgage is set up on a repayment basis, you can apply to change the remaining term. If you do this, you will need to speak to one of our Mortgage Advisors who will check that you can afford the monthly payments over the new term and advise you if this is right for you.

Does anyone know which option they will default to in lieu of speaking to me about which one I want? Or will they contact me to ask?

dimbo61

You need to ring them and ask.
However with the current mess that TSB find themself in I would have waited a week or two

Thrugelmir

I'd suggest that this is their default position.

However, when we next re-calculate your monthly payment, for example at an interest rate change, we will set the new monthly payment to a level that will repay your mortgage over the current mortgage term.

As totally machine based. Requires no intervention. Something that will be done as a matter of proceedure across all accounts.

Lungboy

Thrugelmir wrote: »

I'd suggest that this is their default position.



As totally machine based. Requires no intervention. Something that will be done as a matter of proceedure across all accounts.

That's the one we want to select anyway, so hopefully that's the case. I'll ring them in a minute and expect to speak to someone just after i leave work this afternoon

Lungboy

That was indeed the case. Interestingly, over the phone i was only given 2 options: reduce the balance and keep payments the same, or reduce payments.