How do you make your overpayments?

barbarawright

big_mortgage wrote: »

This then causes me (others too) a problem as I can only repay 10% of the balance off each year without penalty, if the term doesnt reduce it means the actual overpayable amount each year. If the term is reduced (by paying the admin fee) the overpayable amonut would be larger each year . grrr thieving ********,

Are you sure it's 10% of the balance? I was told that it was 10% of the original amount borrowed?

Capricorn_One

In reply to the original question, I just send the Newcastle a cheque and make it clear that it's an overpayment of the capital.

I'd sooner not set up a DD as I'd rather not be overdrawn due to unforeseen expenditure.

Any bank that makes it awkward to make overpayments would prompt me to remortgage.

jackomdj

We have some (about £150 per month) that just comes out with our mortgage payment.

We have an offset mortgage, so the bulk of our "overpayment" just goes into an offset savings account & I manage it via an excel spreadsheet. Every quarter when our mortgage statement comes out I just reconcile between the statement & my spreadsheet & it is always just about there, always slightly out as I don't calc on a daily basis or take into account my current account balance so the two net themselves out practically.

Nicky

pointypenguin

After some of the responses on here I contacted RBS asking how I can overpay. Then sent me a letter with multiple options including:

• Paying in branch
• Online banking (they gave me the correct account number and sort code to use which is different to the one I see on online banking)
• Telephone banking (along as I had done this before online or in person something about setting up a path way)
• A cheque to the mortgage centre
• Setting up standing order
• Increasing my DD by a set amount
  

So a very large thank you to everyone who responded as it is easier than I first thought so hopefully I will be mortgage free quicker! :j