Overpaying question

mrso2b

I changed my monthly payment from £1175 to £1200 on my mortgage – is this classed as overpaying?

Mallotum_X

Depends on what the calculated repayment is.

If its less than 1200 then yes, if its more than 1200 no.

mrso2b

The repayment figure was £1175 and I upped it to £1200 a couple of months ago. I only ask cause I keep reading on here that it's best to make overpayments as one-offs rather than increasing your monthly direct debit...?

Mallotum_X

Depends on your provider and their T&C's

I over pay monthly though an increased DD plus make one off payments.

My provider does not charge for either of these, but worth checking.

mrso2b

Thanks for your help

originalmiscellany

Some only take the value of your overpayment when it's over a threshold, such as £500 - which would mean that you would be overpaying, then only every 16 months (or so) they would take the money off your mortgage - therefore best to check what the threshold is (ring the bank) and overpay in chunks.