Leeds Overpayment Confusion

PeteJL

Hi all, 

Me and my partner are seven months into our first mortgage and we are in a position to make an overpayment (well within the 10% allowed without penalty). I've read the advice about specifying you want to have any overpayments come off the term of the mortgage, but I've called Leeds Buidling Society a couple of times today to say this is what we wish to do but they don't seem to be giving me that option. 

I've held off on paying anything because I don't want my confusion to mean we aren't doing the best thing to reduce the mortgage debt. The options they are giving me are that we can pay this money, term stays the same and our monthly payments are reduced (I did specify I wanted the monthly payments to remain as they are).

The second option was to make the overpayment, mortgage term and monthly payments remain the same. This sounds more like what I'm looking to do, but I didn't want to commit to it because I wasn't totally sure. 

I've called twice - and the first woman I spoke to mentioned something about paying a small fee (£30) and speaking to someone at a local building society to look at reducing the term. I declined to be put through to someone else as I was already confused and figured that I could find some information about this online first - but sadly not. But the second woman I spoke to didn't give this as an option.

Can anyone with any experience of Leeds BS (or mortgages in general) offer me some clarity? Thanks in advance! 

jenni_fer

Never used Leeds but I think formally reducing the term would incur an admin fee but keeping the payment the same will have the same effect as the balance just gets to zero quicker.   I don't know what then happens at the point of the fixed term ending,  my assumption is that the remaining term gets sorted at that point but you'd have to read your individual t&Cs and it's likely you might change lender etc anyway so not really an issue.