Can someone help me get my head around the difference between an overpayment and a part redemption (mortgage)?

[MrsFogi]

So we have a part part mortgage (half on repayment and half on interest only). I've just received a bit of money so want to put this into the mortgage - I think it would automatically go against the repayment part but surely I want to continue just paying this and put it against the interest only part? Does this sound right (DH seems to think not but I can't understand his reasoning and am unable to explain mine to him)?

What is your eventual plan for redeeming the interest-only part of the mortgage?

It all depends on your mortgage terms surely?
We cashed in our endowment and were asked by our provider what we wanted to do.u

But to lower the interest, you’d have to lower the overall amount by paying off some of the debt, surely?

Some of the capital, I mean ^^

I doubt your mortgage is split into two separate products as you think. I imagine you have one mortgage, which you're paying interest on, plus you pay a chunk off the capital each month, but only half what you should be paying off.

So use your money to pay off the capital - make sure your lender knows this otherwise they'll regard it as advanced interest payments.

Depending on your plans to pay off the balance can you increase the repayments each month once the interest has been adjusted to account for the smaller capital owed?

You probably have what we had. We converted some of the mortgage to repayment, and kept £50k interest only. This was because we knew it would be covered by an endowment that was coming out. we thus had two sub accounts for the mortgage.

Sub account two (interest only) was cleared when the endowment paid out, thus redeemed.

Sub account one (repayment) is still being paid, but we are paying the monthly instalment, and then paying the same again and a bit more on top, so are overpaying the mortgage. As we are not on a fixed rate any more, we can overpay as much as we wish. The mortgage will be gone about 2.5 years ahead of schedule.

Hope that helps.