Overpaying on a fixed rate mortgage

Iamdave

Currently over pay by £300 a month on my 20 year, 5 year fixed rate mortgage of £100k.

Just wondering if my monthly payments are meant to reduce as the debt reduces during this 5 year period due to my overpayments?

[Deleted User]

Depends on the lender.

Hopefully not.

Thrugelmir

Iamdave wrote: »

Just wondering if my monthly payments are meant to reduce as the debt reduces during this 5 year period due to my overpayments?

No. Your monthly payment won't be recalculated until the fixed term expires. By maintaining payment levels you'll pay less interest and speed up settling the debt you owe.

Lotak

Iamdave wrote: »

Currently over pay by £300 a month on my 20 year, 5 year fixed rate mortgage of £100k.

Just wondering if my monthly payments are meant to reduce as the debt reduces during this 5 year period due to my overpayments?

The lender shouldn't recalculate the monthly payments. I think that's in breach of the agreement since your Offer should say £x per month for 60 months.

If you're more concerned about not wanting your payment to be reduced, just increase your overpayment to cover the difference.