Making overpayments can help to reduce your mortgage balance and the interest you are charged over the term of your mortgage. Even small overpayments can add up and make a big difference to the total amount of interest that you will pay.
If your mortgage has interest that is charged daily, this is reduced as soon as we receive a payment. The interest is calculated based on the lower balance. The monthly payment will not change at this time.
If your mortgage has interest charged on an annual basis, your balance will go down straightaway. However, the balance on which interest is charged will go down at the end of your statement period. Interest for the following year will then be calculated on the reduced balance.
You can find more information on overpayment here.