Change of payment, how to work the over payment

jdvhsully

We recently paid a sizeable amount off our mortgage and have received a letter saying that because of this our monthly payment is being readjusted.

We currently over pay £480 per month and will have another £40-£50 once the repayment goes down.

Is it better to over pay £530 per month (though the letter reads that anything over £500 will lead to a readjustment) or ask the bank to put the monthly payment back to the original amount?

Or is it the same whichever way we do it?

Thanks

NinaSwiss

I'd opt to keep the monthly/contractual payments the same and reduce the mortgage term with each overpayment. It's a simpler arrangement for me rather than having to keep up with changes in monthly payment each time I overpay.

If you opt for reduction in monthly payment, it will still be spread over the same term I think.