Another C& G Q please

narabanekeater

We have decided to pay an extra 50 pounds a month on top of our normal mortgage payments
I posted earlier to see if they would charge us 10 pounds a month to do so as they do charge ten pounds for larger overpayment but other posters had said that they dont
However I have just looked in my 'mortgage handbook' and this is what it says
' Paying extra every month

If you choose to pay a bit extra every month in the form of regular overpayments, you won't be given a new monthly payment each month after each overpayment, but a new payment will be worked out - taking the overpayments into account - the next time there is some other change that requires recalculation of your monthly payment (such as a interest rate change)
Whenever your monthly payment is recalculated following an extra payment, your new payment is worked out using the remainder of the original mortgage term
Alternatively, if you have a repayment mortgage and you want to make extra payments and use the extra to reduce your mortgage term, please contact us to let us know how much you want to reduce your term. If you don't contat us, your regular extra payments will reduce the amount of your future monthly payments as explained above, but they wont reduce the term. If you contact us however, your term can be reset ccording to the extra you pay each month.

So as we have a repayment mortgage with a fixed rate for another 4.5 years what will happen to our extra 50 pounds. Ive just made one overpayment which I was changed for and can now afford the extra 50 pounds a month on top of what were paying. Id like the extra 50 pounds to reduce what we owe. At the moment were not too bothered by the term left.
Can anone please simplify the above for me?
Many Thanks

moggitymog

we too are with c&g and would like to overpay when we have spare cash, my understanding is a charge of £10 for any overpayment, so we plan to save a decent sized lump sum before making any overpayment,
good luck though with yours

narabanekeater

Moggi thats how I read it as well but earlier I posted regarding this and other poster who are overpaying every month arent being charged
I paid a decent sized lump sum earlier this week and was charged the 10 pounds

moggitymog

I wonder if it's set up as a regular increase that they don't charge? I might ring them and ask, i keep thinking next month i'll save something to overpay but never seem to have the cash, usually spent in tescos, so might just set up a standing order and have done with it, that's if they don't charge

narabanekeater

I will let you know tommorow when I phone them