INterest on a repayment mortgage

kings981

I wonder if anyone can help.

We have been paying off chunks of our mortgage and paying a bit extra each month. We have a mortgage with C&G who recently (last year) added a £10 charge each time you want to make a Capital Repayment.

I was under the impression that each time we overpaid our mortgaged each month as the interest was added monthly, the amount of interest would be based on was the new monthly amount outstanding.

I was thinking about seriously increasing our monthly repayment for a couple of months, instead of making a Capital Repayment and getting over the £10 charge that way. I was reading on their website that for any over payments the interest is still calculated on the previous amounts until a rate change. Is this really the case?

And what do you suggest is the best way around this. I thought it was a good idea to pay as much as we can each month to reduce the outstanding amount. But now I'm not too sure.

Any advice would be greatfully received.

Robert_Sterling_3

£!0 a time for overpaying makes me thin they are trying to avoid small overpayments. It look as though it would be better to save up to £500 and do it in one go.

Suppose you overpaid £5 per month ... madness.

I would like to know more about your terms and conditions.