Features and Benefits

Overpayments

Overpayments are payments made on a regular or lump sum basis which are over and above the normal payment schedule of the mortgage. They will have the affect of reducing your outstanding balance which can either shorten the term of your mortgage or reduce the interest calculated each month. To maximize the affect of overpayments the interest on the mortgage should be calculated on a daily basis. Lenders may restrict the level of any overpayments particularly on products with special interest rates.