A colleague of mine has been making large over-payments on her mortgage for the last couple of months. She received her statement in February and it says that she is £75k in credit! It looks like someone has paid a large sum off the mortgage and not told her (she thinks it’s her dad). She’s not really sure what to do now. Why did the bank not tell her that she had overpaid so much over her capital? And what is the best way to get this money back? or should she let it sit in the account? Also does she need to keep making her monthly payments or can she just pay the monthly interest?
We read somewhere that the bank should send a letter when your overpayment fund is equal to the capital but the account has been in credit since December and she has not received anything?
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Well, the first thing to worry about is if her dad has paid more than 20k off the mortgage, she will be liable to pay income tax on that amount, so she really needs to speak to her dad!
Secondly, is it in credit, or is it just in advance?
Finally, if it is in credit – get the money out and get it into a savings account now…
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Speak to an Independent Financial Advisor. They will explain the legalities of what has happened and what can be done with the Mortgage Account and the excess funds. Do it as a matter of urgency and then speak to the bank. The IFA may charge a fee.