Using 1st as mtg payment date -additional cost

Dandytf · 23 December 2017 at 6:42PM

My standing order has been set 1st each month for quite some time.
Unexpected letter from Natwide recently advised I’ll be paying +5 for future mtg payments, whilst retaining my 2.49% fixed rate.
This was suprising, is this type of charge normal as I’ve been paying on time with what was a small overpayment amount included. In standing order amount,
From what I could read into the letter -does that mean if I change my payment date back to 28th then I’ll avoid this charge.

ViolaLass · 23 December 2017 at 7:13PM

Your mortgage is set to go up by £5 a month and you think this is connected to the date on which you pay?

Has the term changed? Have you been charged any penalties?

Thrugelmir · 23 December 2017 at 7:51PM

Dandytf wrote: »

This was suprising, is this type of charge normal as I’ve been paying on time with what was a small overpayment amount included.

If your contractual due date is the 28th of the month. Then you have not been paying to time. A standing order dated the 1st, will be arriving a lot later if the 1st falls on a weekend.

Dandytf · 23 December 2017 at 8:18PM

Thanks all replies.
My contractual paymenet is per month -think i’ll Amend S.O. To 28th each month.
I thought my overpayment reserve would have covered payments for s few days until 1st -forgot about weekend and back holidays etc -though I’ve had this mtg since 2009 though I think I did make change to S.O. Date when I went part time earlier 2017.
Best I sort it ahead of 2018 if there is still time, or is it best to cancel S.O. And start a new one for 28th Dec.

ViolaLass · 23 December 2017 at 10:52PM

You still haven't said whether you were charged penalties though. If your overpayment reserve covered each payment, which you then made late, that late payment may have been counted as an overpayment. You may be able to make only so many of those before being charged a fee.

Thrugelmir · 24 December 2017 at 12:43AM

How long is your standing order taking to get there?

Why aren't you allowing the lender to take a direct debit?

getmore4less · 24 December 2017 at 6:16AM

You don't give any number to help work it out.

If you don't understand why it has change you won't understand how to fix it, if you even need to as the general rule is pay as soon as you have the money allowing for late payments from the income provider.

when you say small overpayment how much?
how much do you owe how much do you pay etc.

when you made the change of date did you make it later or bring it forward.

might be something as simple as a recalculation based on 1 month thats where the numbers help.

Dandytf · 24 December 2017 at 2:27PM

Think I shall try and advise Mser;s further info though I don’t have Natwide letter in front of me.
If I remember correctly Nat wide have decided after a few months that I’ve ‘missed some payments’
I did call Natwide a few months ago myself when discussing another mtg matter (tv etc)
I was advised if for whatever reason a payment hadn’t been takin from my non Natwide account i.e. S.O. Then my what was a few k overpayment reserve would cover that months mtg payment -which I’d did once or twice and. reserve was reducing for a few days before returning the few k reserve.
I new it wasn’y Ideal though it was working well until this recent natwide letter stating my mtg payments are chaning to+5 or6 per month approx-whilst highlighting my 2.49 fix rate os retained.

small overpayments were before this years 2 2yr fix -were +50 approx
Since swapping to 2017 2yr fix and par time hours permanently-overpayments +10
I understand I can add another few quid to overpayments asap -though think I’ll revert to 28th for payments ahead of Jan2018.
When I made the change I went from 28th to 1st each month -maybe I made it later t.b.h.

Mtg payment I think is 265 since 2yr fix started
S.O. Is setup for 275

Forgot to ask how can I ‘miss’ payments when my reserve is worth a few months payments at least -6

Thrugelmir · 24 December 2017 at 5:33PM

Dandytf wrote: »

Forgot to ask how can I ‘miss’ payments when my reserve is worth a few months payments at least -6

I doubt that this is an automatic process. You would most likely need to contact them and let know that you wished to use the built up overpayment reserve for this purpose. The NW's systems are most likely geared to expect a minimum payment of x. Where not received then the account is deemed to have defaulted.

Dandytf · 24 December 2017 at 6:27PM

Thrugelmir wrote: »

I doubt that this is an automatic process. You would most likely need to contact them and let know that you wished to use the built up overpayment reserve for this purpose. The NW's systems are most likely geared to expect a minimum payment of x. Where not received then the account is deemed to have defaulted.

Natwide csr did last advise my overpayment reserve is used auto where no credit has reached my mtg acc.
I’ll change s.o. To 28th Jan and keep an eye on next weeks 1st +5 payment -all it does is cut my 10.00 overpayment -though that was a new medium term plan where I was to increase overpayments upto 50ish per month during 2018 as I enjoy making adjustments to part time hours/earnings permanently.
Maybe this mtg lesson is one of the last financial adjustments I have to make for some time.
At least I’ve achieved what I wanted which was free up lots of free time to concentrate on health appointments/medicenie etc -have to say I’m finishing 2017 much happier than when it began.

Merry Xmas mser’s!

Dandytf · 24 December 2017 at 6:45PM

This doesn’t; get better at all
28/1 when paid is a Sunday-when rbs where my s.o. Is taken from wont debit my rbs account until Mon 29/1
I hope i’m not stuck with this +5 charge.
I only moved from natwide to rbs for daily banking as i started step change dmp a few years earlier.
I’ll need to re think this or revert to what I did for a few years and pay by debit card via natwide mtg online.

Using 1st as mtg payment date -additional cost

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