We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Why have my monthly payment been recalculated?
barbarafloyd
Posts: 44 Forumite
Hiya
I have a fixed rate mortgage with RBS (first year of 5 years).
For several months I have been making adhoc overpayments, but have not exceeded my annual overpayment limit.
Today I received a letter thanking me for my most recent overpayment, and telling me that my monthly payment has been recalculated, reduced by about £70. Any idea why this has happened? The effect of this would be that I can pay off less money in my mortgage over the fixed rate term so I want to avoid further overpayments having this effect.
Thanks for any help
I have a fixed rate mortgage with RBS (first year of 5 years).
For several months I have been making adhoc overpayments, but have not exceeded my annual overpayment limit.
Today I received a letter thanking me for my most recent overpayment, and telling me that my monthly payment has been recalculated, reduced by about £70. Any idea why this has happened? The effect of this would be that I can pay off less money in my mortgage over the fixed rate term so I want to avoid further overpayments having this effect.
Thanks for any help
0
Comments
-
When you started to make overpayments, did you call your lender and ask them to apply the overpayments to keep your monthly payments the same and reduce the term instead?
If you do not ask, many lenders simply reduce your future payments instead.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards