Making overpayments to HSBC mortgage

pinkteapot

varghesejim wrote: »

Am I correct in assuming that any over payments done on HSBC tracker mortgages goes toward to the principal amount ONLY?

Not quite sure what you mean by only, but the overpayments do reduce the capital amount owed rather than reducing the monthly repayments.

I make ad-hoc overpayments on internet banking and they're reflected immediately in the mortgage balance outstanding. This is the default - I checked when I started overpaying as I didn't want it to reduce our monthly repayment. They said they'll never change your monthly payment unless you ask them to.