Santander mortgage overpayment (A guide)

In this brief guide, we will discuss the Santander mortgage overpayment, using a mortgage management platform to ensure you never overpay on your mortgage and always  know when to overpay to save you money.

Santander mortgage overpayment

You can make a  Santander mortgage overpayment if you want to reduce your mortgage balance and reduce your monthly mortgage repayments by making an overpayment online (through online banking) or by phone. If you want to reduce your  Santander mortgage term, then you will need to contact Sanatander on: 0800 917 5630 to discuss this.

What happens when you make a mortgage overpayment?

  • reduce the amount of interest you pay
  • reduce the amount you owe
  • be mortgage-free sooner
  • You may be charged an early repayment fee

If you are considering making a Santander mortgage overpayment then you should ensure making a  Santander mortgage overpayment won’t incur you any early repayment charges or fees due to Santander having a maximum overpayment amount or limit per year.

Santander says if you are on a fixed rate you can overpay up to 10% of the outstanding balance each calendar year (January to December). If you are not on a fixed rate you can overpay as much as you want to. Santander says you won’t have to pay any early repayment charges.

Santander says if you have an interest only mortgage then “you can make an overpayment to reduce your monthly payments online or by phone. If you want to reduce your mortgage term you’ll need to speak to Santander on 0800 783 9738.”

This means you may have to pay a fee if you make a Santander mortgage overpayment which goes beyond your allowance.   You can check your key facts illustration document which you should have received before you took on your Santander mortgage.

The key facts illustration document given to you by Santander should contain all the information you need about making a Santander mortgage overpayment, any fees and limits in place.

If you are still unsure if you want to make your Santander mortgage overpayment then you should contact Santander on 0800 783 9738 to discuss this.

You can ask them the questions below:

  • Are there any fees for making an overpayment on my Santander mortgage?
  • Do I have any annual limits on how much I can overpay on my Santander mortgage?
  • How do I overpay my Santander mortgage?
  • When will my Santander mortgage overpayment be reflected on my mortgage account?
  • How much interest will I save after making my Santander mortgage overpayment?
  • What will my new monthly mortgage repayments be after making my new Santander mortgage overpayment?
  • Do I have to change my direct debit to my new mortgage repayment or will Santander cancel my current direct debit and issue a new one?
  • What will my mortgage balance be after making my Santander mortgage overpayment?
  • When will be the best time to make my Santander mortgage overpayment for maximum interest savings? The Interest could be calculated Daily, monthly, quarterly or annually.

Mortgage overpayment calculator

As you can appreciate, some of the questions above are complicated and the person on the phone may not be able to give you all the answers you want. A mortgage overpayment calculator may be able to help you figure out how much you could potentially save in mortgage interest repayments by overpaying your Santander mortgage.

The issue here when considering whether to make a mortgage overpayment is that there really isn’t any tool which lets you know the answers to the questions above so you can make a decision on how much your mortgage overpayment is based on how much interest you may be able to save or when the best time to make your mortgage overpayment would be to save the most interest.

Managing your mortgage

As a mortgage holder managing your mortgage is one of the key things you will need to do to ensure you have a balanced financial wellbeing. Managing Your Mortgage doesn’t mean getting an excel sheet and trying to work out how much you owe your mortgage lender, what the mortgage balance is and how long it will take for you to repay the mortgage and be mortgage-free.

Managing your mortgage should be a passive thing. There is so much technology available now that you should be able to easily manage your mortgage with very little work.

So what does managing your mortgage mean?

Managing your mortgage means knowing all the key facts about your mortgage in an easy to view straightforward medium. 

This means knowing when your next monthly mortgage repayment comes out, how much you pay each month, what your Santander mortgage balance is, when your Santander mortgage is due to be paid off, how much you can save by overpaying your mortgage and how much you will need to overpay your Santander mortgage by, how much interest your Santander mortgage costs you each month and each year, how much equity you have in your property,

 if you are eligible for a remortgage, what mortgage lenders may be willing to lend to you and how much you could save by remortgaging.

This is what mortgage management means.

In this brief guide, we discussed the Santander mortgage overpayment. If you have any questions then please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.