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    • jdvhsully
    • By jdvhsully 8th Sep 17, 8:30 PM
    • 90Posts
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    jdvhsully
    Change of payment, how to work the over payment
    • #1
    • 8th Sep 17, 8:30 PM
    Change of payment, how to work the over payment 8th Sep 17 at 8:30 PM
    We recently paid a sizeable amount off our mortgage and have received a letter saying that because of this our monthly payment is being readjusted.

    We currently over pay £480 per month and will have another £40-£50 once the repayment goes down.

    Is it better to over pay £530 per month (though the letter reads that anything over £500 will lead to a readjustment) or ask the bank to put the monthly payment back to the original amount?

    Or is it the same whichever way we do it?

    Thanks
Page 1
    • NinaSwiss
    • By NinaSwiss 8th Sep 17, 9:17 PM
    • 200 Posts
    • 105 Thanks
    NinaSwiss
    • #2
    • 8th Sep 17, 9:17 PM
    • #2
    • 8th Sep 17, 9:17 PM
    I'd opt to keep the monthly/contractual payments the same and reduce the mortgage term with each overpayment. It's a simpler arrangement for me rather than having to keep up with changes in monthly payment each time I overpay.

    If you opt for reduction in monthly payment, it will still be spread over the same term I think.
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