Overpaying mortgage online BOI??
- Thread starter eamo15
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Brendan Burgess
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What else might it come off?
This happened to me in the last few months with BOI, they used the "credit" to cover the payment due
I think you meant that qs for me - in my case I was changing my payment dates due to a change in job/paydates I sent a manual payment to ensure nothing was missed I had intended it to cover a payment that was due one week later (at the time of the request) I was trying to ensure no issues during the changeover from a monthly payment to a fortnightly payment.
The instruction carried on per my request I was not aware of any issues, as far as I was concerned I was up to date.
Fast forward several months and my American employer messed up with a bank holiday both here and in the US and pay day was missed. A number of DDs left my account and only some of them were covered. The Mortgage payment did not hit my account. I called my branch and explained the situation, wanting to make a manual payment from my savings account and was told not to worry they would try again in a few days (I think she said 3 working days) I thought no more about it, wages went in the following day and I waited for the mortgage to go - 3 working days and nothing, after 2 further days I called again (1 week after due) and was told there was a credit on my mortgage account that dated back to the dates change and that was used for the payment. As a result no further request would be made on my account.
I never did get a satisfactory explanation as to why the payment was not applied all those months ago either from the mortgage call centre or from my branch. To be honest I didnt push it as I was in the wrong not having sufficient funds on that occasion and was rather pleased to have some extra money as a result, I have since always kept one mortgage payment ahead if you like, there have been a few hiccups with my salary payment (fault on the US side of things) and I like knowing that cushion is there should it ever happen again. Since discovering what happened I have made regular small payments to my mortgage as an online transfer from my current account to my mortgage account so no specific instruction from me as to what they are to do with the money. I have never asked for my DD to be adjusted to reflect the payments, ie reducing my payments due or to put it off the capital reducing the term, I intend to make an appointment with a mortgage advisor in BOI to figure that out (its a relatively small amount at this stage about 2K).
The instruction carried on per my request I was not aware of any issues, as far as I was concerned I was up to date.
Fast forward several months and my American employer messed up with a bank holiday both here and in the US and pay day was missed. A number of DDs left my account and only some of them were covered. The Mortgage payment did not hit my account. I called my branch and explained the situation, wanting to make a manual payment from my savings account and was told not to worry they would try again in a few days (I think she said 3 working days) I thought no more about it, wages went in the following day and I waited for the mortgage to go - 3 working days and nothing, after 2 further days I called again (1 week after due) and was told there was a credit on my mortgage account that dated back to the dates change and that was used for the payment. As a result no further request would be made on my account.
I never did get a satisfactory explanation as to why the payment was not applied all those months ago either from the mortgage call centre or from my branch. To be honest I didnt push it as I was in the wrong not having sufficient funds on that occasion and was rather pleased to have some extra money as a result, I have since always kept one mortgage payment ahead if you like, there have been a few hiccups with my salary payment (fault on the US side of things) and I like knowing that cushion is there should it ever happen again. Since discovering what happened I have made regular small payments to my mortgage as an online transfer from my current account to my mortgage account so no specific instruction from me as to what they are to do with the money. I have never asked for my DD to be adjusted to reflect the payments, ie reducing my payments due or to put it off the capital reducing the term, I intend to make an appointment with a mortgage advisor in BOI to figure that out (its a relatively small amount at this stage about 2K).
Am I right in saying you paid this €2K directly into your mortgage account, but your outstanding balance has not reduced by this amount ?
If so where is this €2K, is it as elcato says, in some form of holding account ?
Does in appear in a separate column on your annual /monthly statement ?
Are you still paying interest on the full outstanding balance, despite having €2K in credid ?
Tell us more please.
I too have heard of this practice but could never get a straight explanation why it is not paid off the capital like Danske used to do, any extra payments I made big or small instantly reduced my outstanding balance, as interest is calculated daily I was then benefitting immediately from these extra payments.
twofor1, in short - I dont know, thats the reason I want to make the appointment. I made 2 larger payment of 500 euro the remaining payments could have been as low as 50 euro or as high as 200 euro adding up to a balance of 2K approx, depending on what I could afford each fortnight when I got paid.
To use American parlance I believed at the time this would be held in escrow but now I am not so sure. I am also interested in the interest situation like you but dont have any answers, I am on a tracker so the change would be small, but would be very welcome nonetheless.
My annual statement does show the original lodgement I made around the time I was changing my payment dates, listed along side the repayment dd amounts, nothing special about it, just another line item on the statement, and the balance reducing. In this case it shows the lodgement on the 4th of the month and shows a "Value Date" as the 3rd, so I am thinking yes I am benefiting from the interest being reduced along with the term, immediately from the date of lodgement. But how that affects the interest calculation with a missed or reapportioned payment etc??.
The adjustment where the overpayment was used to compensate for the missed payment - that one I cant answer, it happened since my last annual statement so I dont have the record of it. I did ask at the time if there was any penalty or charge on my mortgage account for this but was told no (other than the unpaid dd fee on my current account but that is a separate issue and I totally accept that is my fault). The regular small payments have also happened since my last statement so are not reflected in the statement I have to hand but I have no reason to think they will be treated any differently to the original one.
It doesn't show a separate overpayment amount so how you would know how far ahead you are and what is available to play with if you ran into trouble, how many payments you could "miss" etc I really cant answer any of that.
I want to know if it shows as a missed payment on my internal BOI credit report, or if it flags me in some way as potentially in trouble etc. Based on the info here I do not believe it would be reported to the ICB as a missed payment but I want confirmation of that from teh bank.
To use American parlance I believed at the time this would be held in escrow but now I am not so sure. I am also interested in the interest situation like you but dont have any answers, I am on a tracker so the change would be small, but would be very welcome nonetheless.
My annual statement does show the original lodgement I made around the time I was changing my payment dates, listed along side the repayment dd amounts, nothing special about it, just another line item on the statement, and the balance reducing. In this case it shows the lodgement on the 4th of the month and shows a "Value Date" as the 3rd, so I am thinking yes I am benefiting from the interest being reduced along with the term, immediately from the date of lodgement. But how that affects the interest calculation with a missed or reapportioned payment etc??.
The adjustment where the overpayment was used to compensate for the missed payment - that one I cant answer, it happened since my last annual statement so I dont have the record of it. I did ask at the time if there was any penalty or charge on my mortgage account for this but was told no (other than the unpaid dd fee on my current account but that is a separate issue and I totally accept that is my fault). The regular small payments have also happened since my last statement so are not reflected in the statement I have to hand but I have no reason to think they will be treated any differently to the original one.
It doesn't show a separate overpayment amount so how you would know how far ahead you are and what is available to play with if you ran into trouble, how many payments you could "miss" etc I really cant answer any of that.
I want to know if it shows as a missed payment on my internal BOI credit report, or if it flags me in some way as potentially in trouble etc. Based on the info here I do not believe it would be reported to the ICB as a missed payment but I want confirmation of that from teh bank.
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millieforbes
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I regularly make online payments to my mortgage for varying amounts. As you note, the balance reduces with each transfer to the mortgage account - BOI specifically introduced this functionality a couple of years and encourage customers to use the facility.
My understanding is that the additional payments are taken into account when interest is calculated (as the balance has reduced) but they don't reduce the bank's internal schedule of expected payments - i.e each month the bank knows how much you should be reducing the outstanding balance and the system does an internal comparison of actual balance owed against expected balance owed. If you have overpaid by more than the capital amount of a monthly payment the system won't "punish" you as you will just be back on track to the original schedule, but any further missed payments would trigger an issue.
My understanding is that the additional payments are taken into account when interest is calculated (as the balance has reduced) but they don't reduce the bank's internal schedule of expected payments - i.e each month the bank knows how much you should be reducing the outstanding balance and the system does an internal comparison of actual balance owed against expected balance owed. If you have overpaid by more than the capital amount of a monthly payment the system won't "punish" you as you will just be back on track to the original schedule, but any further missed payments would trigger an issue.