BOSI T&C's are that unless they agree otherwise, the repayment amount is recalculated on the basis that the term will remain the same. They only allow amounts over 1,000 to be partial early repayment. I'll send a link later if you can't find it.
Separately, is this mortgage a BTL or on your PPR? I'm assuming you're repaying the most expensive (after tax) mortgage first.
An overpayment sits as a 'credit' on your account, until such time as you either request the overpayment to stop, request the term to reduce, or you use it up by taking payment holidays. If you can imagine the concept of negative arrears might make it understandable. However it does reduce the balance on which interest is charged.
My outlook on your original question is to reduce the term of the loan asap, but if I'm reading the post correctly, this is not allowed by your mortgage provider.
Any extra funds I had went into reducing the capital amount, keeping the monthly repayments the same, avoiding any complications with fluctuations in the monthly repayment amount.
The most important part of this to me was to get the monkey off the back earlier, even when it was on a tracker.
The most important part of this to me was to get the monkey off the back earlier, even when it was on a tracker.
I'd suggest you confirm what I've told you above with the lender before you go making any final decisions.
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