Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • jdvhsully
    • By jdvhsully 8th Sep 17, 8:30 PM
    • 90Posts
    • 59Thanks
    Change of payment, how to work the over payment
    • #1
    • 8th Sep 17, 8:30 PM
    Change of payment, how to work the over payment 8th Sep 17 at 8:30 PM
    We recently paid a sizeable amount off our mortgage and have received a letter saying that because of this our monthly payment is being readjusted.

    We currently over pay 480 per month and will have another 40-50 once the repayment goes down.

    Is it better to over pay 530 per month (though the letter reads that anything over 500 will lead to a readjustment) or ask the bank to put the monthly payment back to the original amount?

    Or is it the same whichever way we do it?

Page 1
    • NinaSwiss
    • By NinaSwiss 8th Sep 17, 9:17 PM
    • 204 Posts
    • 111 Thanks
    • #2
    • 8th Sep 17, 9:17 PM
    • #2
    • 8th Sep 17, 9:17 PM
    I'd opt to keep the monthly/contractual payments the same and reduce the mortgage term with each overpayment. It's a simpler arrangement for me rather than having to keep up with changes in monthly payment each time I overpay.

    If you opt for reduction in monthly payment, it will still be spread over the same term I think.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    Overpayment (50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)*Save for a Car (2017)!
    *Making the most of life!!!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

284Posts Today

3,123Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin