Making an overpayment on my mortgage

minimadtrix

I recently had the good fortune of being able to make an overpayment on my mortgage. The T&Cs of the mortgage says that I can overpay 10% of the original loan taken out. So, I sent them a cheque and asked that as this was an overpayment, I would like to keep my monthly direct debit at the figure I have been paying for the last 2 years (I'm on a fixed rate mortgage).

I've now had a phone call saying that they can't do that. Basically, if I pay the money off, they will reduce the monthly payments so that my mortgage will still be paid off over 25 years. However, the reason I did it was to reduce the term of the mortgage.

Can they do this? I've looked in the T&Cs again, but can't see anything.

At the end of the day, I'm lawfully making an overpayment, surely this shouldn't interfere with my monthly payments should it?

Any help (especially from anyone working for a mortgage company) would be gratefully received.

sarkin

If they are being like that then shorten the mortgage term with them and see how that works.

gemma.zhang

I just recently did the same with Natwest, and asked to reduce the term instead.. and at the first they claimed is impossible.. after I insisted and insisted, those idiots told me , well, need to revise the contract, and pay 35 pounds admin fee... try to talk to them AGAIN AND AGAIN.. with luck, by talking to different idiots, u will get an answer..
good luck.

luckyfool

Call them and ask for the bank details and reference number to quote if you want to make an overpayment by online banking. then setup a standing order to overpay your mortgage by the shortfall every month. This avoids any admin fee the lender might charge for changing your term.

minimadtrix

Unfortunately I can't ring them because they don't open when I'm at home (its a 0870 number and I can't ring them from work as we're not allowed to and Iwon't use my mobile). So, I've written them a letter and asked where it says in the T&Cs that I have to reduce my monthly payment by making an overpayment.

Roll on Sept 08 when I can change companies!!! But then again, will I be allowed to do that because that will be one hell of an overpayment, reducing the term to £0