Mortgage overpayments

Guy_Walker

I received my mortgage statement recently on which it suggested that, provided I continue to make the current payments, the mortgage would be paid off by December 2024. I am currently overpaying my mortgage by £250 per month at an annual interest rate of 1.24% (total monthly repayment £1,224)
Two months ago, my mortgage statement quoted the same end date (December 2024) with an overpayment of only £150 per month and an annual interest rate of 1.49% (total monthly repayment of £1,236)
I am confused as I would expect the increase in the monthly overpayment would reduce the mortgage term further
Any views or comments would be welcome

Thrugelmir

Your mortgage term is contractual. Unless you request your lender to amend the term it will remain unchanged. To amend the term lenders are requires to assess affordability.

Far better to make overpayments. Then you can adjust future payments to a lower level if you so wish. Interest rates may not remain low until 2024. Something to consider.

At the next change of interest rates. Your lender will reset your monthly payments.

amnblog

Guy

Your solution may be a simple as the Banks Computer system only recalculates the figures every quarter. The date might change on the next statement.