Hi everyone,

Is anyone in the same situation or maybe I can get an advice?

In 2007 I took together mortgage( interest only) with Northern Rock for £162.000

For the first two years we were paying interest only £865.30 at 6.35%

After that in 2009 the interest dropped to SVR 4.78% so they recalculates our payment to £663.30.(interest only)

We decided to keep paying the same original amount, and start overpaying the mortgage.

Over months/years our outstanding balance was decreasing.

In November 2013 I realised that the amount of interest charged has been the same since 2009 despite overpaying by nearly £15k by then.

our outstanding balance decreast by around 15k but the interest has been charged from £162k that we originally borrowed.

I have contacted NRAM and they told me that the interest has been the same because I haven't instructed them to recalculate it.

And if the overpayments where over £500 a month it would be done automatically.

they told me I have to call them each time I overpay over £500 and ask to recalculate my monthly payments.

Is this legal??

In my mortgage documents it says that my interest is charged daily.

Re overpayments

''Following receipt of a regular overpayment or a lump sum repayment,

the amount that you owe and the amount of interest that you pay will be recalculated with effect from the following day''

When I checked my statement back only with two statements in 2009

there has been a note under overpayments that

"If you make your monthly payments by Direct Debit and the overpayment is £500 or more your monthly payment will be changed automatically.

You have the option to leave your monthly payment unchanged, which will have the effect of setting up a regular overpayment

and further reduce your outstanding mortgage balance..."

Is there something I missed here, or NRAM is taking a chance?

In original morthage documents there was no mention that i have to phone them and ask to recalculate

and no one has told me that when i was setting up overpayments which them.

I would really appreciate your opinion, thank you.

send them a copy of the original agreement you mention

that's the one you signed up too

that's the one you/they must abide by.

TBH nothing unusual for them to make their own rules up

this forum is littered with threads about their various unfair tactics