Interest-only query

tracex

Hoping someone can explain this question simply for me as I'm finding it hard to grasp!!
I've got a £40,000 mortgage with Britannia, some of which is Interst-only and some on repayment. I've been overpaying both parts for a while now and fully understand that if I overpay on the repayment part that the balance is reduced and therefore the term is reduced. What is really confusing me is the Interest-only part. I have a rubbish endowment which is going to fall well short so by overpaying I can see that the balance I owe is being reduced. As I am still paying the same mortgage payment each month, what is happening to the interest I am paying extra than I need to? (because the balance I owe is continually falling). I will still be relying on the endowment to pay off the majority of the balance and will have to wait the full mortgage term for that to mature, so will the Britannia write to me and say I've paid too much interest, if my monthly repayments stay the same?? Trying to put this in words is confusing for me, so I just hope someone can understand what I'm trying to ask!!!!

Welshlassie

Basically anything you overpay will result in the capital being paid off. You pay a set amount of interest and the monthly payment that would have gone towards paying off the IO element will be diverted to the capital part of the mortgage.
You can't pay too much interest, its just taken off the capital, therefore meaning that each month more of your monthly repayment is paying off capital.
HTH