hi. I overpaid my mortgage in 2003/4 by €1000 a month for approx 15 months.
I queried that there has been no reduction in principal or term on the load - i.e. I still have the same maturity date and have had the same monthly repayments.
The answer I received from the bank was that 'any savings would be in terms of interest paid on your mortgage'. Is this correct? Surely if I paid less interest, then my balance would be reduced quicker and hence the term shortened? Or am I missing something? thanks in advance.
I queried that there has been no reduction in principal or term on the load - i.e. I still have the same maturity date and have had the same monthly repayments.
The answer I received from the bank was that 'any savings would be in terms of interest paid on your mortgage'. Is this correct? Surely if I paid less interest, then my balance would be reduced quicker and hence the term shortened? Or am I missing something? thanks in advance.