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Mortgage Capital Repayment

pappadruid
pappadruid Posts: 86 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Mortgages & endowments
Hi!

I havce my mortgage at the moment with Northern Rock and I am ina position where I am able to make a capital repayment of about £5K. I would like to use this money to pay off some of the capital and thus reduce the term of the mortgage, while still making an overpayment on my monthly mortgage payment. (Hopefully reducing the term even more!)

I spoke to NR about this and they said I could make the repayment but would only be able to reduce my monthly repayment, not the term. Is this correct? Would anyone advise doing anything different with this money?

Current mortgage - £114K
Monthly repayment - £700 (repayment method only)
Overpayment _ £100

Thanks!!
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