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Four year over-paid mortgage battle for bereaved daughter

Andrea’s mother died four years ago and the PR boss said she would happily take over the mortgage on the family home in the Black Country, after all, as she pointed out to Santander’s mortgage section, she had been paying it for the last twenty years because her mother lived on a pension … Santander initially refused to allow her to make the payments however, because it wasn’t actually her mortgage.

However, they had accepted the PR boss’s overpayments on the mortgage – she had been hoping to have it paid off early.

Then Santander remembered the over-payments and told her there was nothing to pay.

Months later she discovered that the out-standing mortgage hadn’t in fact been paid off and was accruing interest … there was less than £1,500 outstanding.

And so Andrea’s 96 month battle over her mother’s mortgage began in   earnest.

She has shared all her correspondence with the bank with CWF and here is her latest letter to them:




Dear Mr Reed


Thanks for your response,


My question is really simple, where was the over payment held during the mortgage period before you decided to use it to meet outstanding payments?  Why wasn't it used to reduce the mortgage at the time it was paid in, which is what it was sent for and who received the interest on the money?


How come it became available for your use at the end of the mortgage, had you literally put it aside in case of emergencies - is this normal practice in organisations like yours and why were we lead to believe that the mortgage would come down contemporaneously with the payments.


Why when I offered to pay the mortgage did no one contact me?


All I want to know is what you did with my money after I sent it to you to pay down the mortgage and how your actions benefit me.  It certainly has had no beneficial affect for me in the last 4 years while I have tried to get you to explain this simple point.  It has certainly cost me money in interest.


The question I'm asking is based very simply on what you've told me and it's ludicrous that you can’t explain it to me.


I have been in touch with your company to ask how best I could pay this money (once this problem was sorted out) and it's taken almost 2 weeks for someone to write back to me to ask me to phone them, I just don't have the time for this. 




Andrea Martin


CWF is waiting for a reply from Santander however, the general advice is In many cases overpaying on your mortgage will save you money in the long-run, by reducing the size of your mortgage and as a result the amount of interest you'll pay overall.

In the current economic climate the best deals tend to be available to those with more equity in their property. So using overpayments to build more equity in your home can put you in a more favourable position when the time comes to look for another deal.

For example you may have a £150,000 mortgage with a term of 20 years, at an interest rate of 5%.

This would cost you £237,584 in total when paying the standard repayment each month.

However, add a monthly overpayment of £100, and you could cut the cost of your mortgage to £223,327.

This would save you around £14,300, cutting nearly 3 years off the length of your mortgage.


It is generally more tax-efficient to put any spare cash you have available into paying off your mortgage rather than into a savings account, because the interest earned on your savings is taxable (unless you invest in a cash ISA). Therefore, in theory, you should be able to save more money in the long-run by putting your money towards mortgage overpayments rather than stashing it in a low-interest savings account.