Sainsbury's Loan - Overpayments

SimonRoberts

Hi all.... wondering if someone could help me understand something.

I've a loan for £24k with Sainsbury's over 7yrs. Pay 2.90% and repayments are £316 (ish). I'm a year and 5 months into the loan

I've started paying additional £316 per month overpayments in the hope to half the term now I've some free cash.
I understand interest is charge to the additional loan etc etc and I also understand that each month interest is paid.
HOWEVER, if I am paying £316 as an overpayment - why is it that I'd getting thank you letters for only paying £285. Is my overpayment also paying interest?
I generally believed that paying £316 overpayment would result in £316 coming off the remaining balance.

I was recently overpaying my mothers loan with Tesco's and for example, if I paid £200 as an overpayment. £200 would come off the balance.

I had hoped Sainsbury's and Tesco's would have operated similarly.

Thank you

[Deleted User]

Overpayments all come off the capital.

Clarify the letters with them.

foxy-stoat

Its the interest charge on the overpayment - quite normal, well it was with my Natwest loan when I was making overpayments....maybe Tesco do it differently.

TrickyDicky101

58 days' interest on the overpayment would only be c.£1.50 ish so I don't think it's that. As zx81 says, ask the lender.

SimonRoberts

Simple Answer - Sainsbury do not know so if anyone else see's this..... it might be worth giving them a quick call. They also sent me the wrong balance so clearly the automatic overpayment letter in some cases isn't working that well.