Making an additional payment on your mortgage can be a great way to reduce the amount of interest you pay and shorten the term of your loan. Birmingham Midshires is offering customers the opportunity to make underpayments on their existing mortgages, and has recently been paying compensation to some customers after miscalculating their monthly mortgage payments. In this article, we'll discuss how you can make an underpayment with Birmingham Midshires, what the benefits are, and how to ensure that your payments are accurate. You can make an additional mortgage payment with your debit card for any amount between 5 and 60,000 pounds by calling Birmingham Midshires on 0345 300 2627. The lump sum overpayment can usually be made by bank transfer. If you bank online, with some lenders you can change your mortgage payment online.
Whether and to what extent you can overpay will depend on your mortgage product (not just your lender), since different mortgage products have different rules on overpayments. For example, if you were to increase your monthly payment by 100 pounds to 1209 pounds, you would reduce the term of the mortgage to 17 years and 10 months and, therefore, you would pay it off two years and two months faster. If you want to make a payment on a specific part of your mortgage, replace 00 with the sub-account number for that part of your mortgage. Make an additional payment of 500€ using your 14-digit mortgage account number followed by 00 as the reference number. Keep in mind that if you have a mortgage that only pays interest, you pay off what you owe all at once at the end of the mortgage term. Not all mortgages allow for overpayments, so it's important to check your mortgage agreement or talk to your lender before doing anything.
With most other mortgage products, you may not be able to recover the money you overpaid. However, this means that you will have a lower loan-to-value ratio (LTV), which will allow you to opt for cheaper mortgage products if you want to remortgage. Birmingham Midshires is paying compensation to some customers after miscalculating their monthly mortgage payments, and one customer has already received more than 1,600 pounds sterling. A letter sent to a customer from Birmingham Midshires and seen by MSE said that the customer would be paid more than 1,600 pounds in their mortgage account, including more than 500 pounds in compensation. Birmingham Midshires says it is also recalculating the monthly mortgage payments of affected customers to ensure that they are accurate in the future.
Birmingham Midshires declined to tell us how many customers were affected by the errors, saying it was a small number of its 420,000 mortgage customers. Making an underpayment on your Birmingham Midshires mortgage can be a great way to reduce the amount of interest you pay and shorten the term of your loan. It's important to check your contract before making any additional payments, as not all mortgages allow for overpayments. Birmingham Midshires is offering customers the opportunity to make underpayments on their existing mortgages and is paying compensation to some customers after miscalculating their monthly payments.