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Overpayment on I/O

Hi. I have made a £24000 lump sum payment off my I/O mortgage but my monthly mortgage payment has remained the same. Surely as I don't owe as much I should be paying less interest each month or am I wrong in my thinking please. 

Comments

  • savingholmes
    savingholmes Posts: 29,017 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You should ring them up and ask about it - as it does seem unusual. It may be that they have reduced the term of your mortgage instead. Some mortgages you have to specify how you want them to treat overpayments.
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £172.5K Equity 36.11%
    2) £1.6K Net savings after CCs 14/8/25
    3) Mortgage neutral by 06/30 (AVC £25.6K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.4/£127.5K target 24.6% 1/9/25
    (If took bigger lump sum = 53.3K or 41.8%)
    4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
    (If bigger lump sum £15.8/30K 52.67%)
    5) SIPP £4.8K updated 29/7/25
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