Regular Mortgage Overpayments - Should I request a payment recalculation after each payment?

n_earnshaw

Hi All
I'm looking to start overpaying on my mortgage payment.  My mortgage is with Accord and they usually recalculate the payment amount annually.  They have mentioned that if I want to recalculate my payment more frequently I just need to tell them when I make my additional payment.
I'm intending to make a regular overpayment so would I save any more interest by requesting the payment is recalculated after each payment or should I just wait until the annual recalculation takes place?

Thanks for any info :-)

Thrugelmir

If they recalculate your standard monthly payment it will fall every time you make an overpayment. Is that you want to happen? 

pramsay13

Recalculating won't make a difference to the interest rates, or the amount you are paying back, it just means that they change the monthly payment amount sooner rather than later.

This would be worthwhile if you just make one overpayment and then want to adjust the regular payment amount.

If you are going to regularly overpay there is no need to recalculate the amount sooner, simply keep paying.

n_earnshaw

I'm not needing to reduce the payment amount so it sounds like there's nothing to gain (additional interest savings etc) in getting them to recalculate after each additional payment.

MovingForwards

Make sure you check the amount they have taken by direct debit, if it drops because of making an O/P send them the difference otherwise you are not really saving on interest or the term of the mortgage.