Mortgage Over Payment Question....

gilesnotts

Evening everyone,

I'm trying to work out if this is the best way to help me in the future and use my money wisely and would like a bit of advice...:)

I currently have a £117,000 30 year mortgage at 2.93% fixed rate for 2 years with Platform. After that my mortgage goes up to a minimum of 6.20% for the remaining term. The total I will be paying back with interest is £227,000. However, I plan switch providers or find a better deal after the first 2 years.

I am able to pay off £1000 without incurring any chargers. I am looking to pay off £900, but my question is do over payments incur interest? Or will my £900 be interest free and my new mortgage amount be £116,100?

Thanks for reading,

Giles

SG27

Overpayments pay off capital. Interest is charged on your outstanding balance.