Mortgage overpayment

Moneynovice1985

Hi

I have recently made a one off payment on my mortgage however because the payment is less than my monthly payment they can't reduce the term.

Is this standard?

My payment has come off the balance but hasn't impacted the term so should I have kept the money in my savings until there was enough to impact the term?

Thanks in advance.

Cheers

The_J

An overpayment will affect the term regardless of size, it could just be that the effect is so minimal they don't feel the need to recalculate. You will carry on paying the same amount and be marginally overpaying each month. Financially you are in the same position, the difference is just how it is reported to you.

Moneynovice1985

Thanks for the reply, that makes a little more sense now.

At least I know what has happened to the payment.