I have had a Santander mortgage for a few years now and almost always have had the same problem...
Previously I was on an interest only mortgage. I would phone them up to inform them I was making a capital repayment. The operator would say something like "a note has been made against your account so when the money is transferred it will be taken off your mortgage balance". Yet each time the following month's mortgage payment would not be taken so I would phone up and find out they had taken the lump sum as an overpayment...
Despite phoning and writing to them about this it always happened (to my mind there was no advantage to me of making an overpayment, the only winner being Santander who got my lump sum interest free). I finally had had enough and wrote a formal complaint about this at which point I was contacted and future capital repayments came off the mortgage.
Well last year I switched mortgages to a repayment one on a lower rate and in December I made another capital repayment. Guess what? January's mortgage payment was not taken and on phoning Santander they told me my lump sum was taken as an overpayment. The lady then proceeded to tell me I had not given them enough lead time to process it as a capital repayment.
Apart from having a rant can anyone let me know of any advantages to making an overpayment on a mortgage as opposed to a capital repayment?
Previously I was on an interest only mortgage. I would phone them up to inform them I was making a capital repayment. The operator would say something like "a note has been made against your account so when the money is transferred it will be taken off your mortgage balance". Yet each time the following month's mortgage payment would not be taken so I would phone up and find out they had taken the lump sum as an overpayment...
Despite phoning and writing to them about this it always happened (to my mind there was no advantage to me of making an overpayment, the only winner being Santander who got my lump sum interest free). I finally had had enough and wrote a formal complaint about this at which point I was contacted and future capital repayments came off the mortgage.
Well last year I switched mortgages to a repayment one on a lower rate and in December I made another capital repayment. Guess what? January's mortgage payment was not taken and on phoning Santander they told me my lump sum was taken as an overpayment. The lady then proceeded to tell me I had not given them enough lead time to process it as a capital repayment.
Apart from having a rant can anyone let me know of any advantages to making an overpayment on a mortgage as opposed to a capital repayment?