mortgage overpayments

[loflo]

hope someone clever can help. We have the facility to make overpayments on our mortgage and since the interest rate is so crap wondered about putting the bulk of our savings into our mortgage using this. We can draw it back down if we need it but the trick question is will it reduce our monthly payments while it is in there?

You are best to talk to your banker.

If you overpay capital, it is usually limited in how much you can do a year. When you do this, payments do not usually change - you'd have to get the bank to come up with a new repayment.

You'll need to check with your provider but most likely it won't but will reduce your capital loan so the term will be shorter so in the end you will not pay as much interest in the long run.
month;y Interest is calculated on the main capital loan so the more you pay down the capital the lower the interst payments will be - I think !

We haven't had our monthly payment reduced yet, but put it into a pot, we can then transfer the pot over when it is bigger and I guess it would make a difference to our monthly payment.

Our monthly payment is going down anyway due to interest rates.

We can also access our money if we need to, it doesn't earn any interest but will build up and we will transfer over when it reaches £5k every time.

Can you draw the money back down again at the same interest rate as the rest of your mortgage?