Can someone please explain monthly payments and how to speed up this paying off !
So... we took a mortgage of 230k - 14 years ago. Originally the monthly repayment was around £900 at a rate of around 5%, then it dropped after 5 years to 2.75%, which was great. so we started making ovepayments of £400 a month. A few years ago, interest rates went down again, around 2.5%, now 2.1%. We took the opportunity to try pay more monthly.
I remember at the time the customer service person didnt sound keen for us to overpay, honestly, just saying our monthly minimum payment would be reduced but I had to insist we didn't want to pay less. What I don't understand it the minimum payment has been set to around £700 - not sure how long this has been going on. Still with the overpayment of £400 a month.
My question is : Why has the minimum payment dropped, and also, why does the statement say we still have 10 years to pay when we've been overpaying?
Balance is around 78K, under of a 'sub-account01' which includes a nagging remaining £500 that gets paid off separately and we don't know why it even exists...
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