With a standing order, you, as the current account holder, give your consent to make a recurring payment. Examples of such payments include monthly payments for various loans and credit, utility bill payments, and television or radio fees. You can also set up a standing order for a regular mortgage payment. This is the only way to make sure you don’t forget to send the payment.
Setting up a standing order
The very first time you set up a standing order, you need to know the recipient’s bank account number and bank code. For mortgages, the account number is specified in the loan agreement. Next, you need to fill in the correct amount, the date the first, regular and last instalments are sent, select the frequency of recurrence (note monthly) and also enter the variable symbol. These details can be found in the mortgage contract. If you are sending money from a bank other than the one where the mortgage is held, set up a standing order at least two to three days before the desired due date. This will avoid the inconvenience of late payment.
Keep a financial reserve
Keep an eye on your available balance in your current account. A payment can only leave your account if there is enough money in it. If your monthly mortgage payment does not leave your account, most banks will first notify you by email or text message that the payment has not been made. If you pay the outstanding amount promptly, you will avoid reminders and penalties.