To ask here for quick advice on mortgage overayments and charges. We're about to cry here.

[muffliato]

Dh has been overpaying the mortgage for a few months now.
When he phoned up and spoke on the phone they said he could so he said to add £300 a month extra and asked if it was OK. Everything seemed OK but we've just had our mortgage statement and we have been charged an overpayment of £1600.
Is there anything we can do to get it back? When we phoned up nothing was said about this charge. Any advice would be appreciated.

What do your mortgage terms and conditions say about overpayments ? Our allows us to pay up to 10% of remaining mortgage value extra per year without penalty. I would try and see what the terms say.

What is your outstanding balance? You can usually pay 10% per year without a fee. So if your mortgage is small you may have exceeded that

Check the contract about over payments, but how much have you overpaid? Is it less than overpayment doesn't make sense. Also I would call back and spk directly to a manager stating you were not told of this when setting up overpayment. If not resolved by bank then spk to financial ombudsman.

Our mortgage allows overpayments but a maximum £500 per month and their calendar month doesn't tally with our pay cycle so you had to be careful not to go over the limit accidentally or they would charge fees.

Sounds like either you didn't read information or it wasn't explained. First instance ring and speak to manager. Escalate complaint from there if no joy but keep it very polite. If you have other accounts with them, this might help.

There's normally a limit to how much you can overpay per year. If they didn't warn your DH about that I would probably complain.

Whilst it is your responsibility to be aware of the terms and conditions of your mortgage it may be worth complaining. If you explain that you called to check that you could overpay they will be able to listen to the phone call and decide whether or not your complaint is justified.

Have you just got.your mortgage statement for.the year. Payments and over payments usually appear as - numbers?

You definitely shouldn't have been charged more than you've overpaid. Either check website or phone them?

There is only a certain amount you can overpay before they charge but defeats the object somewhat if your charge is nigh on the same to your total overpayment!

They defnately didn't warn dh that he would be charged. Looking at the statement we paid 4 payments of £500.75 since October. We are not supposed to pay more than 500.
So for a matter of a couple of pounds we are charged £1600 that cannot be right surely?

Did you ask for that amount to be overpaid or did the bank calculate, and take that as the extra 10% payment?

It depends on Ts&Cs and will vary with every lender. What does your paperwork say about overpayments. Often the charge is a percentage of your remaining balance.

I would definitely call and get them to listen to the phone call when your husband called. Explain that you feel that you were not treated fairly as they didn't warn you that you would be charged.

I really hope that if you challenge this they will waive the charge. It would be really unreasonable not to. Definitely call them.

If it's a matter of a few pounds and they won't back down, I'd go to town on them on social media and phone the papers. I'd even be prepared to do a sad face photo for the Daily Mail That's a disgrace.

Who calculated that £500.75 figure OP??? That's important, very important.

I should imagine your charges would have been calculated by computer- you went over £500, so the computer automatically charges you.

I think if you phone and speak to a human, they will hopefully waive the charge for that sake of .75p a month.

If they won't back down do inform them you will be going to the press.

Hi op,

Call the mortgage co ask for a refund, if they say no raise a complaint, tell them when you discussed this the rep did not spot that it would take you over the limit and you want the charge refunding as it is disproportionate, unfair and the rep failed to advise you.

Ask the mortgage co to make the complaint their final response if it still a no as you can then contact the Financial Ombudsman Service to take the complaint further, which will charge the mortgage company appx £500 to judge their response (it is free and doesn't cost you anything)

You asked for a £300 over payment, and they have taken £500.75?

Have you rung your mortgage company OP?

Agree with everyone else.
Ring them up. Tell them who dh spoke to, giving the date he was advised. Recount the conversation. Say you are stunned that Mr(S) X wouldn't have warned you about what would happen if you paid that amount. Ask them what can be done.
Always best to start nice - polite, restrained, querying as if there has clearly been a mistake, as ultimately you should have checked what the T&C said, but most companies would have a look at the situation and be able to have some discretion once you point out what happened, and that you checked (you thought).