lump sum causes DD payments to be treated as overpayments

Thrugelmir

mw47938 wrote: »

No - the payments were more than 1 year apart.

Doesn't matter. The payments are reducing the interest charged. This is causing your normal monthly repayment to be too high.

When did your mortgage start. Which months did you make the overpayments. Let's see if we can determine what's happened.

mw47938

Thrugelmir wrote: »

By making a lump sum overpayment of £10k. The following year you will save interest.

That is exactly my point. By lowering the DD payments the bank is clawing back that saving. if you make the overpayments count towards your DD payments then part of the overpayment is no longer an overpayment as it's offset by reduced DD payments.

Therefore, if you allow overpayments then these should be treated as overpayments and not and not as partial advance payments of your DD.

Thrugelmir

mw47938 wrote: »

That is exactly my point. By lowering the DD payments the bank is clawing back that saving. if you make the overpayments count towards your DD payments then part of the overpayment is no longer an overpayment as it's offset by reduced DD payments.

Therefore, if you allow overpayments then these should be treated as overpayments and not and not as partial advance payments of your DD.

I think that you are missing the point I'm trying to make entirely. The only way is to crunch the numbers properly. The lenders mortgage systems will have a built in trigger to determine if overpayments of capital have been made. These will be tried and tested. There's no back of the fag packet calculations or manual intervention.