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Overpayment Query

quietness
quietness Posts: 24 Forumite
in Mortgage-free wannabe
Hi, I'm now in the position that I can start to overpay my mortgage.
I have a HSBC mortgage that allows me to make overpayments and as far as I know the interst is calculated daily.
My query is this, I used online banking and transferred some money to my mortgage account, This money has come off the mortgage balance but there are no interest charges, I was expecting that to be applied straight the way too. Am I being naive or does that not get charged straight the way?
Hope that all makes sense.
Thanks

Comments

  • SG27
    SG27 Posts: 2,773 Forumite
    interest is normally added at the end of each month. Making an overpayment won't cause more interest to be added it just reduces the capital.
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