Will my fixed payment go down after overpayment?

Fuzzythinking

Hi

I have been paying overpayment monthly should I expect my fixed mortgage payment go down?

FT

Hurdler

You might have to specifically ask them to recalculate because I would imagine Fixed means Fixed (the whole point being it stays at one rate so you know where you are)... but it certainly will not hurt to ask them?
Does your mortgage provider impose any limits as to how much you can overpay?

CathT

I asked my provider to keep payment the same so that my term would reduce instead. Not sure how much effect OP's would have if the repayment amount was reduced accordingly.

Fuzzythinking

According to my contract, it says that I can overpay up to 10% of my deposit yearly. It never mentions reducing my fixed payment though.

FT

pinkteapot

Ask the bank!

HSBC's default is for it to reduce your mortgage term. Your monthly repayment stays the same unless you ask them to change it.

DianeM

Just had same query with my mortgage as I have made 3 full monthly payments and now starting to pay extra per month.
I am told that the term won't reduce, just the monthly payments after each years recalculation unless the mortgage is paid off.

Hope that makes sense.

ZARA

you save more money if you reduce the term instead of the monthly payments, that's what i was told by C&G

Giddytimes

With my old Northern Rock mortgage it just reduced the term, they said I couldn't change the monthly DD payments until the fixed deal was up and we remortgaged.

Judging from the above it must depend on the mortgage provider, give them a call and ask.