In credit with mortgage?

Hi folks,

I pay my mortgage by direct debit every month to the EBS.
I also can check my mortgage account online(tells you balance,previous payments etc).
Last week I set up the mortgage account with phone banking,
so that I could transfer extra cash to the mortgage, if I was feeling flush.
I transfered 5 euro, to make sure everything was ok and set up and it showed up fine.
However it has me down as being 5 euro in credit but the balance being 180k.
So in a situation where I was in 'credit' for a larger sum (say 5k),
do I need to ring the EBS and tell them I want the credit put against my balance?
Or will it happen automatically?

Cheers

Dave

Sounds like you'll have to tell them.

Banks in Ireland had this bizarre system of lodging mortgage payments in to a type of holding account and then periodically taking this amount from the mortgage account. Periodically could mean anything from a month to a year depending on the bank!

For the sake of a fiver leave it until your monthly repayment date and check it again, if it is still not coming off the mortgage ask if all repayments are taken from the mortgage immediately or at least monthly and do they change the outstanding interest

Ok, will leave it till next payment.

Thanks

P.S. the fiver was just to check the transaction went ok.
Planning to transfer much larger amounts, and didn't want them to be
holding my money on 'credit' and still paying interest on the ful balance.

I used to overpay my EBS mortgage each month and initially had the same issue as you outlined- the credits weren't being offset against the principal.
I asked them to 'diarise' the overpayments so that every 2 months the overpayments were automatically used to reduce the loan term- problem solved.

As above - without explicit instructions that you want overpayments set against capital rather than being held as credits on the account most or all lenders will default to the latter.

I used to credit my EBS mortgage by transferring money online and over the counter from my current account. The default behaviour for online transfers was to 'creidt' the account. I never had any problems and it always reduced my interest payments by the equivalent amount. As an added bonus they never imposed the stipulated notice period on me or making withdrawals or transfers. Very happy with the facility. Mortgage now paid off and I'm stuck with online savings accounts that are a little more cumbersome for me personally instead.