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YBS payments in advance
SG27
Posts: 2,773 Forumite
Just wondering if anyone knows what's going in here before I spend my lunch break on the phone!
So got my annual mortgage statement from YBS. In previous years I see my new monthly payment is reduced to take into account the overpayments Ive made throughout the year. Last year I moved house and took out an additional loan. On this statement rather than an adjustment in monthly payment like I was expecting, it show a section called "Payments in advance" the states "Payments on your account are in advance by £xxx".
I've never heard of this before and thought all overpayments would either reduce future monthly payments or reduce the term. This seems to have done neither but has reduced the balance owed. The only thing I can think is that as I've only made 3 ops the sum is too small to make an adjustment? Overpayments total £630 and balance is £133k over 29.5 years.
So got my annual mortgage statement from YBS. In previous years I see my new monthly payment is reduced to take into account the overpayments Ive made throughout the year. Last year I moved house and took out an additional loan. On this statement rather than an adjustment in monthly payment like I was expecting, it show a section called "Payments in advance" the states "Payments on your account are in advance by £xxx".
I've never heard of this before and thought all overpayments would either reduce future monthly payments or reduce the term. This seems to have done neither but has reduced the balance owed. The only thing I can think is that as I've only made 3 ops the sum is too small to make an adjustment? Overpayments total £630 and balance is £133k over 29.5 years.
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