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overpayment question

gemma.zhang
gemma.zhang Posts: 405 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Mortgages & endowments
Hi guys,


When making overpayment, does it normally just reduce monthly payment amount, or you can request to reduce the term ? Coz mine is 2 yr tracker, worried they wouldn't allow me to reduce the term ! Can't find any detail with their information pack.. Any advice welcome!

Thanks

Comments

  • WildHaggis
    WildHaggis Posts: 53 Forumite
    If you make an overpayment, it reduces the total amount owed on the mortgage. As your overall debt has gone down, you have reduced the term. Your monthly repayment usually doesnt change
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • FluffityBunny
    FluffityBunny Posts: 222 Forumite
    Part of the Furniture 100 Posts Name Dropper
    with my mortgage you can either reduce the term or reduce the monthly payment
  • gemma.zhang
    gemma.zhang Posts: 405 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for your advice.. It would be great to have term shorten, just bit worried that, as it's 2yr-tracker, the term is written on the mortgage offer, overpayment wouldn't necessary reduce the term,maybe I am just bit over-worried.. correct me if I am wrong.. Thanks.
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