Overpayments on mortgage

Hi, 

we have a mortgage of £84k, first time buyers and mortgage started end of jan 22. 

I have just signed up to Halifax online banking for our mortgage account and I was hoping that I could have used that online account to over pay every time I had spare cash each week. My silly thinking I could do that just like my very account 🙄. 

I can set up a monthly direct debt but was hoping not to do this specially when the Xmas months come around and I could do without a extra DD. 

I know I can call to make payments but not sure if this is ok to pay the odd £50 extra each week by calling and taking up their time for such a low amount.  I was hoping for a simpler way to do this. 

I was hoping to pay £100-200 extra per month without the direct debit set up and without calling, I know it’s not a massive overpayment but when looking at the overpayment calculator it can bring the mortgage years down by 9yrs or so. 

Any tips 

Comments

  • Cambs_Chap
    Cambs_Chap Posts: 31 Forumite
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    Does your lender provide an account nr and sort code to make payments via BACS?

    Mine does and I just need to reference my mortgage account number when I make a payment. 

    If you can find the account details it might be worth testing out first by making a nominal payment of say £1 to check it all works okay. You might need to wait a day or two for it to show up on your mortgage account. 
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  • Your lender should be able to provide the details to make overpayments to. Usually a sort code and account number with you quoting your mortgage reference number.

    You may also need to confirm with them if you want the overpayments to either reduce the term of the mortgage or monthly payment.
  • rose_T
    rose_T Posts: 109 Forumite
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    Thanks for your replies 

    I will call and ask if they have an account that can be paid into
  • microcristallina
    microcristallina Posts: 30 Forumite
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    edited 8 March 2022 at 4:28PM
    If you sign into your account. Click on overpayments. Scroll to the bottom and click on set up a regular over payment under overpay by standing order it will give you your account number sort code and reference. You can use those to make a one off payment rather than set up the standing order.

    Edit: Just realised its also under overpay a lump sum as well as set up a regular over payment.
  • rose_T
    rose_T Posts: 109 Forumite
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    I just found the account details under paying by standing order. 

    Thanks everyone for your help 
  • northwalesd
    northwalesd Posts: 1,157 Forumite
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    You can pay a liump sum (or as many as you like) to overpay your martgage in Halifax online banking, but only from another Halifax account.

    From the mortgage account, click on More actions > Paying your mortgage and you'll be presented with the option to 'Make an additional lump-sum payment'. As I say, you can only make the payment from another Halifax account, you can't pay by debit card from another account for example.
  • Martas
    Martas Posts: 36 Forumite
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    One piece of advice from me is: set a regular overpayment, even if it's only £50.
    Before I set mine, there were some months when I spent money on c**p and never made an overpayment. If it comes out of your account automatically at the start of the month,  I promise you, you'll not even notice it. I set up a regular overpayment in August last year and I just make extra overpayments when additional savings are made. 

    Good luck with your mortgage overpayments!
    We took £83795 mortgage in June 2018
    Left to pay on mortgage: £51821.20
    Original end date: June 2037
    Now: September 2033
    Target: pay off by December 2025
    Mortgage Free Wannabe 2022 #90 £13000/£11000
    Mortgage Free Wannabe 2023 #42 £999/£13000 no overpayments until 20.06.2023 when my overpayment allowance renews
    MFi3-T6 #42 January 2022 £70915, to reduce mortgage to £17000 by January 2025
    Love people and use things because the opposite never works
  • rose_T
    rose_T Posts: 109 Forumite
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    After a discussion we have decided to do that, we have a bit of decorating to do but once that’s done we are going to set up a monthly DD of £100-150 then top up extra when we can each month. 

    We are hoping to finish the decorating by end of April 
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