My current mortgage is on the standard variable rate, so I am not tied in, and as far as I am aware I can make as many overpayments without penalty, as I wish, as the introductory period has ended. My question is, will I pay interest on a lump sum if I was to pay it in now, in addition to my normal monthly payments?
E.g. £100,000 left on mortgage at 3.99%
If I pay a lump sum of £10,000, will my outstanding balance be £90,000, or £100,000 minus the £10,000 with interest at 3.99% taken into account?
Read more: If I pay a lump sum off of my mortgage, will I pay interest on that lump sum?
