mortgage repayments/lump sum

[dervalh]

I paid lump sum off my mortgage in May stating to bank this was a capital repayment and not a credit to my account. My monthly repayments have remained the same - can somebody clarify whether repayments should be based on new capital value and not original capital value.
thanks in advance

 

[Satanta]

Worth checking with your lender, but I'd assume that without you requesting a change in your monthly payments they have left them as was and the lump sum will be used to provide additional savings and lead to a reduction in the term of the mortgage (and reduction in the total cost of the mortgage).

Try imputing your figures here to check on the savings achieved and then have a look through the figures you get from your bank to ensure this is the case.
[edit the calcs to suit your %'s, your initial amount, term etc. and then input the lump sum and the month it went through (extra payments section) to see the changes it brought about]

 

[dervalh]

thanks for advise. I think I will set up meeting with guy in bank and ask him to explain why repayments taken from account are at variance with repayment amounts on interest rate communication letters sent out and are different agin to karl jeale mortgage calculatore. It's a bit of a mess. Got 2 letters in teh one week, both stating different repayment amounts yet when I checked my bank account the same repayment as always was taken out!!??