Overpayment on a buy-to-let

WestieW

I am currently trying to remortgage my buy-to-let with the current provider. When I have received the application paperwork, they are not including or should I say deducting the overpayments already made against the account, when calculating the new amount to borrow.

Is this normal practice?   If I was able to pay the settlement amount in full today, the over payments have been deducted. Am I missing the point of over paying? 

Thanks in advance

K_S

@westiew It's not normal practice for most mortgages. It looks like your overpayments may have gone into some kind of 'reserve' where it reduces the interest payable but is not allocated against the capital owed.

If that is the case and you're sure you don't need the feature anymore (it probably comes with some flexibility re what you can do with the reserve) then you should speak to the lender and ask them to use the reserve to reduce the capital.

WestieW said:

I am currently trying to remortgage my buy-to-let with the current provider. When I have received the application paperwork, they are not including or should I say deducting the overpayments already made against the account, when calculating the new amount to borrow.

Is this normal practice?   If I was able to pay the settlement amount in full today, the over payments have been deducted. Am I missing the point of over paying? 

Thanks in advance