when you make over payments...

Feanor

Is it paying off the original amount borrowed, or a combination of the interest and original amount borrowed?

If you over paid by £100 a month, how much of the £100 would be interest, how much would be off the original amount?

is this how it works?

Thanks

Lipstick_2

It all depends on how long you have had your mortgage. Initially, a repayment mortgage pays only a small amount off your mortgage as it is mainly interest.

By year 12 of a 25 year mortgage, it start to go the other way as a greater amount of the payments are paid off the capital.

Lipstick

ManAtHome

In all cases, you'd be paying off the capital with an over-payment. Repayment mortgage monthly payments always cover the interest plus some of the capital (as Lipstick said, very little in the early years), so an over-payment must be reducing the amount owed.

plane_boy2000

Any overpayment in addition to the normal monthly payment will be reducing your capital balance. Your payment has already covered the interest charges. In your case an extra £100 per month would reduce your capital by £1200 a year and then a bit more as well because you would have saved some interest, but how much would depend on your rate.