we would love to join

mummyd_2

hiya

we have currently a £97000 mortgage with currently 22years to go.

really hoping to reduce this!!!!! Quickly!!!!!

luckily able to put £10000 this week as bonus time.

does the full amount come off making the total £87000 or does sum go on interest?

cannot reduce term as would affect rate currently base+0.25

thanks in advance

moominyak

Hi,

As far as I am aware some of the £10k will go on interest, as the amount of the debt changes daily as the interest is accrued.

I've only made a few small extra payments to my mortgage, and that's how it works with mine...

If you ring the mortgage co. and get an actual balance, you'll know how much will come off the debt if you make a payment on the same day - however, leaving it until the next day means another day's interest (ie. your £10k will be worth less against the debt tomorrow than it is today!).

HTH

CLAPTON

interest on a mortgage accrues on a daily basis based on the capital amount outstanding.... so when you pay the monthly payment, the interest for the month is paid in full and anything left over pays off a bit of the capital.
so if you make an additional one off payment it all comes off the capital.