Mortgage over payment

martinbuffleo

My partner and I recently paid off an additional £1,000 off our mortgage, I expected that to make some difference to our monthly payments or the term of our mortgage.

We are on a 35 year mortgage.

Having made the payment, the Company have reduced our payments by £6 a month.

Having called them today they inform me that I still have 32years and 9 months on the mortgage, which works back to when we started the mortgage, so no reduction in term there.

Also I asked about bringing my payments back up to the original value and it only saves 8 months off the term of the mortgage.

Is this expected, I am a bit disapointed with the result to say the least.

beecher2

How much were you expecting off the term? £1000 isn't much in the grand scheme of things, and a 35 year term is extremely long, so you will have paid off very little capital so far.
Use http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator and try to overpay as much as possible to get that term down.

RS_Clio

How much is the mortgage ?

If it's high and as you say on a 35 year term I dont think it will have made a huge dent in either the monthly £££ or the term by overpaying unfortunately

martinbuffleo

beecher2 wrote: »

How much were you expecting off the term? £1000 isn't much in the grand scheme of things, and a 35 year term is extremely long, so you will have paid off very little capital so far.
Use XXX and try to overpay as much as possible to get that term down.

Thanks for the link. Both informative and depressing

DVardysShadow

martinbuffleo wrote: »

My partner and I recently paid off an additional £1,000 off our mortgage, I expected that to make some difference to our monthly payments or the term of our mortgage.

We are on a 35 year mortgage.

....

Also I asked about bringing my payments back up to the original value and it only saves 8 months off the term of the mortgage.

Is this expected, I am a bit disapointed with the result to say the least.

If you are only paying £125/month on your mortgage, your £1000 is currently 8 months payments.

If as I suspect, your £1000 is more like 2 months payments, that 2 months has grown to 8 months payments.