Barclays Mortgage Overpayment confusion.

Hi All, 
I have spoken with Barclays on the phone a few weeks ago regarding overpayments but did not take full notes (memory not as it used to be).
Hope someone on here can help with my uncertainties as I cannot get through to Barclays, waiting time seems to be over an hour every time I try and webchat is for current account customers only.
Example figures:  Loan amount £100,000.  Standard monthly payment £600  - Repayment basis. Fixed for 2 yrs
1. I was told I can overpay up to 3 times original mortgage amount (therefore can pay additional £1800) without shortening term or affecting the 10% (£10,000) annual overpayment allowance.
Questions.
When does annual overpayment reset?
When I make an overpayment online, the figure £1800 is there as a maximum, I then pay say £600. My confusion is the figure of £1800 is still there if I go back one day later, a week later etc... Does this mean I could theoretically pay £1800 more than once in a month without it effecting term or early payment fee??
2. I was told that the up to 3 times over payments go in to an over payment fund which is taken in to account when calculating interest, fair enough. Then I was told that I could withdraw funds from this if I wanted to. Amazing, sounds like an offset account. I forgot to ask how I would go about withdrawing the funds, not that I want to, just curious. If anyone knows please let me know. Thank you all for the time you have spent reading this.


Comments

  • caeler
    caeler Posts: 2,605
    Mortgage-free Glee! Photogenic Name Dropper First Post
    Forumite
    I think you'll need to check through the paperwork you originally received.  In mine (I'm with Nationwide) it is explicitly about the maximum amount I can over pay and what date each year that resets.  As for how the Barclay system displays overpayments I'm not sure but hopefully somebody who is with them may be around and will answer that for you.
  • Update. I found as much info as I could online and basically gambled with an overpayment of just under 10%. This was transferred (ref: overpayment) using Barclays sort code and my mortgage account number. The payment went through and has been deducted from balance owing and so far no penalty added to account. Yey.
    Now I have recieved a letter from Barclays saying they have received payment as a part redemption that will reduce both balance and monthly payment.(lets say previously £700 and now down to £600) Please contact us within 90 days if you'd like this payment to be applied as an overpayment instead (an overpayment will reduce your balance and your monthly payment will remain the same).
    I thought the payment reference 'overpayment' was clear enough. Obviously not.
    My question is; does it make much financial difference if I leave it as is 'reduce both balance and monthly payment' and I will overpay difference of reduction (£100) every month.
    Or am I financially better off if I somehow contact them to 'reduce your balance and your monthly payment will remain the same'
    All answers much appreciated.



  • caeler
    caeler Posts: 2,605
    Mortgage-free Glee! Photogenic Name Dropper First Post
    Forumite
    You will need to confirm your instruction, they won’t go on the reference you used on the payment. 
    It’s a very personal choice depending on your circumstances and what you are trying to achieve in terms of reducing the term or monthly payment. Personally I’ve always chosen to reduce the term. 

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