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Mortgage overpayment with proceeds from Life Assurance Policy
rs3100
Posts: 13 Forumite
I have an interest only mortgage that I intend to pay off on expiration of the fixed rate period, to avoid an ERC. The terms of the mortgage allow me to make overpayments of up to £500 a month without penalty within the fee period. Having just made my first overpayment, I received a letter informing me of my new monthly repayment based on the reduced balance. The letter also states:
"If this overpayment represents the proceeds from a life assurance policy, you must inform [us] so that we can ensure your mortgage has been adjusted correctly."
This doesn't apply to me, but I'm just curious as to what difference it makes and why?
"If this overpayment represents the proceeds from a life assurance policy, you must inform [us] so that we can ensure your mortgage has been adjusted correctly."
This doesn't apply to me, but I'm just curious as to what difference it makes and why?
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