Overpayment question

tigtag02

Hello all

We have just had the confirmation for our new rate (2yr fixed ended last month) to a lifetime tracker at .85% above the base!!

We can overpay as much as we like as often as we like without penalty which is what we are hoping to do and cut the darn thing by 10years.

My question is does the overpayment automatically reduce the capital or is this something that we need to stipulate to the lender?

Thanks in advance
tigtag

ThankYouAndEnjoy!

hello

if interest is charged daily, the benefit of the overpayment will be instant,

any payment you make on a repayment mortgage will come off the capital. the only thing you may need to stipulate is that either you want

A - the payment to reduce the contracted monthly payment, thus the term remains at x number of years
B - the payment to reduce the term of the mortgage, thus contracted monthly payment remains the same.

if you contact your mortgage provider, they can confirm which option you wish to take.

tigtag02

Thank you - I will call them first thing