Hi Aisling
Your post is confusing.
Are you saying that you are in credit by €6,000?
If not, can you provide the following information
Mortgage balance:
Less amount in credit:
= Net amount due :
Most lenders knock any extra repayments off the mortgage balance.
So let's say you owe €100k and pay off €10k, they will reduce the balance to €90k and charge you interest on that.
Some lenders leave the mortgage balance at €100k and set up a credit balance of €10k , but they charge you interest on the €90k. So it makes no difference. Except that it does mean that if you get into difficulty in the future, you won't be going into arrears, they will just reduce the credit.
Do you have statements? If so, you can roughly calculate the interest charged. Check out
As always, comments, corrections and suggestions for layout very welcome - Brendan There have been a few questions on askaboutmoney which have been very difficult to answer without explaining the background to mortgage calculations. For example: Bank of Scotland offer to write off my...
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I suggest you write the following letter to the lender.
Dear
1) Please provide full statements to me for the period from 1 January 2018 to date. (Whatever date you started making overpayments)
2) What is the current mortgage rate
3) In a conversation with Mr X on 3/9/2020 he explained that the overpayments since xxxx have gone into a credit account.
4) Please explain how this credit account operates.
5) In particular, how is interest charged on my mortgage. Is the interest calculated on the mortgage account balance or on the mortgage account balance less the amount in the credit account.
6) Please illustrate 5) above with a recent example of the interest figure