Mortgage Overpayments

mrtropicana

Hi, I've had nothing but trouble with a LLoyds buy-to-let interest only mortgage. I made an overpayment and I called to check why the monthly payment hadn't reduced. They said I had to request a recalculation. Is that normal and do I need to do that every time?

foxy-stoat

We will automatically use any additional payments received to reduce your balance and the interest we charge you. You need to tell us if you would like us to immediately recalculate your monthly payments using the reduced balance over the remaining mortgage term. If you don’t do this we will do this automatically when we next recalculate your monthly payment, for example at an interest rate change.

^^^^^ Taken from Lloyds bank web site

Lovin_It

Yes you're still benefitting from reduced interest - reduced term in this case if you're still paying the same monthly amount

pawlala

This is new. Take it from me that recalculations were done automatically following an overpayment online, but at some point since 2014 this is no longer the case. Also the same with Halifax.

mrtropicana

Thanks all. In a surprising twist I had a letter from Lloyds to apologise and say it was their mistake and shouldn't have happened? I think I'm even more confused now.