Overpayments

garydufley

Hi all

sorry, this is my first mortgage so it may be a simple question. I have a mortgage with Natwest. looking on the site about overpayments it reads

'Customers making lump sum overpayments over £1,000 will have their monthly repayments recalculated, whereas for those making overpayments less than that amount, their repayments won't change. The latter could mean that they have a lower balance to refinance when it comes to a new fixed term'

I think I understand that paying an extra £1000 will lower the monthly repayments. which could be useful. what Im chewing on is that by reducing the payments, it would (might) also reduce the amount of interest that Im paying each month and thus the compound interest would be higher

but then again I have the choice to overpay, but the minimum payment would be lower which seems attractive (if I have understood it)

am I just overthinking?

thanks! 

diystarter7

Hi

Check the T&C's about what overpayments are allowed/amounts over what period and how these impact your loan as the T&C's about this varies contract to contract.
Then give you lender a call if you are still unclear for any questions you have

Then, read this as very helpful should you go ahead

https://www.moneysavingexpert.com/mortgages/mortgages-vs-savings/

Thnaks

garydufley

Thank you very much