lump sum mortgage overpayment

sanova76

Does it make any difference (worth it) if I make a small amount overpayment?  I still have about £65 K left on my mortgage, I'm planning to make a one off £1500 lump sum overpayment.  I'm on fixed rate.  Apart from making my mortgage and interest rate (possible) less, I don't think it'll reduce my monthly payment?

Thanks. 
San

bradders1983

Of course it would reduce it, you may need them to recalculate the minimum payment though. 

It wouldnt change the interest rate, just the amount you are being charged on. 

[Deleted User]

It depends on your provider. As far as I have seen most do not recalculate the monthly payment until something changes, i.e you remortgage, re-fix.

For example my monthly payment during my fix was £650, I'd paid off about 40k in total during that 2 years and once my fix ended my payment went down to £615 (despite going into the SVR at a much higher rate)

If you wanted the overpayment to reduce your monthly payment then call them and see if it is possible.

sanova76

Thanks for the replies.  I put some figures on the mortgage overpayment calculator (on my provider website) and it didn't really reduce my monthly payment apart from telling me that I'll pay less interest and clear my mortgage a few months faster.  I've tried to contact them but seems they're very busy at the moment.

Polly05

sanova76 said:

Thanks for the replies.  I put some figures on the mortgage overpayment calculator (on my provider website) and it didn't really reduce my monthly payment apart from telling me that I'll pay less interest and clear my mortgage a few months faster. 

That sounds about right. 

dimbo61

We made an overpayment on our Santander mortgage and the nice lady told me the new balance outstanding and the fact that the new mortgage payment would be £6 less from next month !
Pain in the !!!!!! to sort the ovepayment over the phone ( 45 minutes wait ) and told by staff I could do this online.
Tried doing it online but computer and website said not available online just ring the call centre.