overpayment question

gemma.zhang

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

WildHaggis

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

FluffityBunny

with my mortgage you can either reduce the term or reduce the monthly payment

gemma.zhang

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.