Barclays overpayments X3 monthly direct debit every few days.

fletcher1985

Hi I have been trying to overpay my mortgage before it ends in October as I'm shared ownership and want to buy the last 20%. I was going to pay one lump sum to pay off my 10% but they have told me on the phone to pay X3 of my monthly direct debit amount. My question is they told me I could ring up now every day or so until I over pay the 7k I have saved. They said I won't get charged any penalty but now I'm think I shouldn't be doing this. Any advice please.

HampshireH

Whats the difference in paying it every few days compared to a lump sum?

I could understand if you could only overpay x a month/per payment but this above approach isnt that 

minimike2

The only difference is how the payment is treated - As an overpayment, or as a part redemption. Both have the same effect on your balance and amount you are charged interest on, but I believe it can make a difference to if it impacts the term, or the monthly payment. Either way, if you pay off the whole amount in one go, you can ask them for it to be treated either way.