Mortgage overpayment question

[Rothdogg]

I have a mortgage with platform which is now moved over to coop. We have the initial mortgage on 1.44% with 3 years remaining which we are overpaying each month. Last year we remortgaged to borrow some money for an extension and that is on a 4.89% rate for 3 years so both mortgage deals will end at the same time.

I have noticed that my overpayment is only coming off the 1.44% balance. I have just come off the phone with co-op bank and they say they can't change the overpayment to sub account 2 which is at 4.89% as the system won't let them however they can split my overpayment across both accounts.

Are they talking rubbish and do I need to speak to a manager?

[Sarnie]

They have always been a strange lender, awkward to deal with and have some strange processing and policies, so it wouldn't surprise me that this would be their approach to your overpayment.....

[Stevemr]

Do not overpay on a 1.44% fixed rate. Put that money into a savings account, at the highest rate possible, natybe an isa depending on your tax rate and the amount, but look also at regular savings rates. Then use the saved money to reduce the mortgage in 3 years time.

[rossub]

Stevemr said:

Do not overpay on a 1.44% fixed rate. Put that money into a savings account, at the highest rate possible, natybe an isa depending on your tax rate and the amount, but look also at regular savings rates. Then use the saved money to reduce the mortgage in 3 years time.

+1

Easier than trying to sort that mess out, as long as you don’t get tempted to spend it!