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Overpayment - Capital Repayment

lolly30
lolly30 Posts: 2 Newbie
in Mortgages & endowments
Hi

Could someone explain the difference to me between an Overpayment and a Capital Repayment.

Thanks

Comments

  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    overpayment can be the same if its a one off - but I would normally take that as a regular overpayment where I would say a capital repayment is a one off lump sum.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    lolly30 wrote: »
    Hi

    Could someone explain the difference to me between an Overpayment and a Capital Repayment.

    Thanks

    Capital repayment is when you pay back both capital and interest.

    Overpayment is when you are making more payments than is required.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • kenshaz
    kenshaz Posts: 3,155 Forumite
    Part of the Furniture Combo Breaker
    JoeK wrote: »
    Capital repayment is when you pay back both capital and interest.

    Overpayment is when you are making more payments than is required.

    JoeK
    Both have the same result ,savings loads of money.I paid of my mortgage early and life is sweet ,the shackles are removed.
    [FONT=Arial, Helvetica, sans-serif]To be happy you need to make someone happy.[/FONT]
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