Overpayments on Mortgage query

S

setanta78

Registered User
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I have been making intermitent overpayments on my mortgage for the last year. Up until last month each of the overpayments has been for €1300+. This has been with a view to reducing the term.

This month I lodged €1000 into my mortgage account and sent off the appropiate paperwork as per usual. I have just recieved a letter from my mortgage provider saying that they won't process any overpayments under €1200!

I am with PTSB and have read over the terms and conditions in their flexi repayments booklet and I can find no reference to this anywhere. I intend on calling them tomorrow and querying this but in the meantime I am wondering if this is common practice and if not what can I do about it? It does seem slightly strange to me.
 
I would have thought they would have been glad to get the money in earlier than expected.You could off couse make a small increase on your monthly payments.
 
If 1000 (excl insurances) is less than your currently monthly repayment and you asked them to reduce term then they would not be able to take off 1 month... thats the only reason that I would see
 
Yeah, thats a fair point chlipps. I hadn't thought of that.

I called them yesterday and I didn't really find their answer to be satisfactory. They just said that it was a self imposed limit but could not explain why it was there. When I hung up I contacted the financial regulator who then put me in touch with PTSB's complaint dept. Basically, the interest is calculated daily, less any money I lodge off the mortgage whether the money is processed or not.
 
I think what might have happened in your case is that at some stage you must have completed an Overpayment Options Application Form, & specified a minimum amount that you would/could overpay on the form. It looks as if you can change this amount, but have to fill in another form.

Maybe it's the case that not all staff are aware of this & you could be given different information by branch staff & customer service staff over the phone. It wouldn't at all surprise me.

Check out Page 7 on this pdf document [broken link removed]
 
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