Voyant Query: Overpayment of Interest Only Mortgage
Hello, I'm struggling to replicate this scenario in Voyant.
A client has an outstanding Interest Only mortgage of £305,933 @ 1.89%, maturing in 9 years. The monthly payment is £487 (representing the interest), however the client has told us he is paying £2,250 (so presumably there is an element of repayment of the loan going on too).
If I simply increase the monthly payment, the 'Interest Only' check box is automatically deselected and the loan assumed to include principle.
Does anyone have any ideas on how to model this, or am I going back to the client for more details?