Barclays Overpayments

Ellen07886

Personally I would pay £1 in and when you're sure it's gone against the right account I would make more payments but in small amounts. The is a trick you can use with Barclays to pay off more than your annual over payment allowance without a) affecting the over payment allowance and b) reducing your monthly payment, if that's what you want to do.

If you're over payment is less than 3 times the amount of your monthly repayment it doesn't count as part of your over payment allowance and therefore won't reduce your monthly payments either. For example, if your monthly repayment is £1000.00 and you paid a lump sum of £2950 there is no impact on your monthly fee and your original over payment allowance remains the same, a day or 2 later you could make the same payment again.  I've been doing this for years and it's made a massive difference to my mortgage.  Towards the end of every over payment year I contact them and ask them how much is left of my over payment allowance and it's always the full allowance so I just pay that off before the over payment window closes.

Just beware that if you clear you full mortgage by doing this then they can  come after you for redemption fees so the solution is to not pay it all off before the term of your mortgage agreement, just keep enough on the mortgage to reduce your monthly payments to a few pound.

You can find more info here https://www.barclays.co.uk/help/mortgages/repayments-rates/overpayment-charge/