Mortgage Overpayment Worries

exhaustedbrit

I purchased my first home with my wife December last year, we are now approaching a year since the funds were drawn down.
The mortgage amount was roughly £230,000 over 35 years with a 5.89% fixed rate for 5 years. Overpayments are allowed up to only 10% of the outstanding balance per year, with a percentage fee for amounts beyond this. The fee is 3% for the first year, 2.5% for the second, 2% for the third and so on...

We are in a position to make a 10% overpayment this year to bring the balance down, we would like to do this because we would like to remortgage as soon as feasibly possible, and the 10% overpayment limit is based off of the balance at the start of each consecutive year. So it's almost a waste if we have the money to overpay this year but do not do so.

The trouble is, I have contacted the lender and have been told to expect communication in the mail as I am unsure how to make this overpayment, the lender has no real online platform to view balance or statements and only allows overpayments by card via a simple form by providing account number and card details for amounts up to £1k, but it has been quite some time now and I have been promised a statement twice and received nothing. I am anxious that I will not be able to make an overpayment until the year has elapsed, effectively losing out the chance to repay this 10% this year which would be a huge blow.

What can I do? Is there any recourse for me if I don't receive this communication promptly, is there any way I can put pressure on the lender? I'm worried they'll delay communication until it's too late and then the chance to repay 10% of the balance this year will lapse.

mortgagetakingages

Who's the lender?

exhaustedbrit

mortgagetakingages said:

Who's the lender?

Thanks, it's Bluestone

mortgagetakingages

This is taken from their guidance. Double check it by your own means but I would simply send additional payments to that. 

Standing Order or Bank Transfers

If you pay by Standing Order or Bank Transfer you’ll need to contact your bank and give them our bank

details and your new account number which you can find in your Welcome letter.

Bluestone Bank Details:

Account Name: Bluestone Mortgages Limited

Bank: Lloyds Bank PLC

Sort Code: 30­80­12

Account Number: 12532468

Of course your mortgage reference number will go in reference field. 

https://www.bluestone.co.uk/bluestone/media/Bluestone/Download/Customer-FAQs-0416.pdf

exhaustedbrit

Thanks so much! I struggled to find this on their website, I will make a small repayment via bank transfer and if all goes well and they confirm receipt of it I'll do the rest.

getmore4less

Whats your place worth?
What is the outstanding balance
With a rate of 5.89% you should have been overpaying as soon as the money was available.

IT is also going to be worth running purchase 0% CC to manage cash flow to get money off the mortgage sooner.

bradders1983

5.89!!!!!! 😯😯

exhaustedbrit

getmore4less said:

Whats your place worth?
What is the outstanding balance
With a rate of 5.89% you should have been overpaying as soon as the money was available.

IT is also going to be worth running purchase 0% CC to manage cash flow to get money off the mortgage sooner.

The place is worth £310k. We made a small overpayment via card before the pandemic to test the system but after things changed we figured it's better to hold on to the money in uncertain times. Now things are a little more predictable with work and we're saving more money due to not travelling to work so we're in a better position to make the overpayment and would like to do so whilst we still can, we also had a small amount of unsecured debt which we used for purchasing appliances, furniture and other things which is now paid off.

getmore4less

£230k on a £310k place is 75% LTV 

WHY are you on a 5.89% rate

if you have sorted out he problem that took you to Bluestone you may be into ditch the fix options.

MovingForwards

I do manual faster payments to them each month.
All the bank details were provided in the documentation I received from them.

You've over complicated this for yourself.

exhaustedbrit

MovingForwards said:

I do manual faster payments to them each month.
All the bank details were provided in the documentation I received from them.

You've over complicated this for yourself.

Thanks, the communication with them has been fairly slow and difficult and I was a bit anxious transferring a large amount of money without confirmation or acknowledgement from them, though I concede I might have wound myself up a little bit. I've made a small payment and will try and call later today to confirm receipt and then make the larger overpayments - should be simple!