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Extra money and a shorter term are different account events
Receiving an overpayment does not necessarily implement the schedule change a borrower imagines.
Product rules may apply it in another way or require instructions.
Written clarification and an updated schedule show the result. A guide should not encourage skipping an instalment based only on the fact that extra money was previously sent.
Compare secured and unsecured structures
Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.