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capital or credit on overpayments

streganano
Posts: 1 Newbie
I have been making regular overpayments to Mortgage Express assuming that it all goes into one account.
Trillium mortgages have just bought my mortgage and now i will be making overpayments to them.
I rang today to confirm sort code to send standing order to etc and i was told that my overpayments (11,000) are in a credit account would i like to put it in capital, also future overpayments will go to credit unless capital is stated.
Mortgage is now 114 a month but i pay 425 extra via standing order to get it paid off quick.
my question is should it all be going to capital and why,idid ask over the phone to Trillium but they said it makes no difference unless the inerest rate starts to move up
thanks in advance
Trillium mortgages have just bought my mortgage and now i will be making overpayments to them.
I rang today to confirm sort code to send standing order to etc and i was told that my overpayments (11,000) are in a credit account would i like to put it in capital, also future overpayments will go to credit unless capital is stated.
Mortgage is now 114 a month but i pay 425 extra via standing order to get it paid off quick.
my question is should it all be going to capital and why,idid ask over the phone to Trillium but they said it makes no difference unless the inerest rate starts to move up
thanks in advance
0
Comments
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Whether in credit or moved to capital your total balance would be the same, and the interest is calculated on total balance, so in that aspect it doesn't make much difference.
If it's as credit you could potentially use towards future instalments, but once moved to capital they don't allow unless you have a drawdown facility.
Only difference I can say is It makes statements look a lot tidier if the overpayments are moved to the capital.0
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