One off payment on mortgage

nobber85

Hi guys, 
 

Last year I borrowed £10000 secured against our property, the rate for this was on the standard variable rate. 

6 months ago I made a repayment of £5000 using a direct transfer from a current account to my mortgage account (same bank).

Today I’ve found out that the payment was split between my mortgage and my loan, with only £500 coming off the higher interest rate loan.

is this normal? Or should the highest interest debt be repaid first?

when making the payment I rang in advance to explain what the payment was for as I had to find out how to actually do it. 

They said I had to specify which part the overpayment was for.

They have rung back to say they will transfer the monies across to the loan but I’m unsure if they will adjust any interest incurred?

dimbo61

You did not make it clear you wanted the overpayment to come off the expensive loan rather than the mortgage.
Now unless the guy/lady can read your mind they will follow the bank process on overpayments.
You can but ask nicely if they will credit the money to the loan account from the day you paid it in.
Will this trigger any ERC,s ?