Changing the term of Nationwide mortgage

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  • Daisy_Duck
    Daisy_Duck Posts: 1,535 Forumite
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    I hope everyone has had a good Christmas :)

    I've contacted Nationwide about changing our term. It was indeed very simple as people have mentioned- they are sending a form and have given us new end date/payment examples.

    We've been told that we can add years back on at a later date as long as it doesn't take us over certain time limits (think one of them was the 70th birthday of either of us).

    Thank you to everyone who replied- Happy New Year to you all :beer:
  • Ditto
    Ditto Posts: 357 Forumite
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    SoozyJ22 wrote: »
    When I first started doing this I sent them an online message from my account and they did confirm that I would be able to lengthen the term again if I wanted.

    I've not done so, but I'm pretty sure the form says the only restriction on doing that is that it's not extended past the original end date.

    I highly recommend sending them an online message to get all of this confirmed though - they're very good and usually reply within a couple of days.

    Does that mean if you take out a 10 year mortgage and then shorten it to 5 years, but in the future you needed to lengthen the term, to say 12 years, it would not be possible?
  • Daisy_Duck
    Daisy_Duck Posts: 1,535 Forumite
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    Hi Ditto

    I think you would have to check this.

    I would have assumed that you could play around with the term as long as you didn't go over the original agreed end date. However, when I spoke to them this morning this wasn't one of the things the man listed.

    From what I can remember one of the stipulations was the 70th (or 70 something) birthday of the oldest named person on the mortgage; another was that the complete term could not be longer than 45 years. No mention of not going past the original end date.

    So, not sure really- I'd give them a call/send a secure message and get the info from the horse's mouth so to speak!

    DD :)
  • Daisy_Duck
    Daisy_Duck Posts: 1,535 Forumite
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    Just looked at the comment you've quoted where SoozyJ22 is mentioning info on the form... they are sending this out to me so I can let you know what's on it when it arrives if you haven't already found out the info you need anyway.
  • Queen-Bee_2
    Queen-Bee_2 Posts: 828 Forumite
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    Daisy_Duck wrote: »
    Hi, thanks for replying :)

    Another question for you if I may... have you ever extended your term again after shortening it?
    DD

    Hello there, this is exactly what I have done with my Nationwide mortgage (there's more detail in my diary). Because I am still within my fixed rate period - which expires 03/2011 - I was limited in what I could pay off each month.

    On a temporary basis only, I have therefore shortened the mortgage to terminate in 03/2011. This has raised my monthly payments to around £3k, and I can still make an annual overpayment of 10% - it's a good way of getting round the overpayment limit.

    I was told I could extend the term again at any time without either a penalty or admin charge. It is an ex-Portman account - don't know if that makes any difference.

    Hope this helps,
    QB
  • stphnstevey
    stphnstevey Posts: 3,224 Forumite
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    edited 11 February 2010 at 5:15PM
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    It seems if you have an interest only mortgage, changing the term will make no difference (ie if your paying say 5% on £100K over 25yrs, the interest will stay the same per year as 5% on 100k over 1yr).

    However the overpayments will be used to pay off the capital, which will reduce either the interest (monthly payment) or term if you want to keep the same monthly payments.

    I have a ten year fixed rate and I presume I can't shorten the term to less than 10yrs with out paying a penalty for repayment?
  • uzubairu
    uzubairu Posts: 1,200 Forumite
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    stphnstevey wrote: »

    I have a ten year fixed rate and I presume I can't shorten the term to less than 10yrs with out paying a penalty for repayment?

    Yes that's true.
    Our rate is fixed until June 2016, and mortgage was due to finish in June 2031initially, but with term reductions and overpayments the mortgage is set to finish in September 2018.
    We requested that overpayments are used to reduce the mortgage term.

    Nationwide have told us that once the overpayments reduce the term to June 2016, we should start saving the overpayment in another account, or we will be subject to charges.
  • alfiesmum
    alfiesmum Posts: 1,171 Forumite
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    uzubairu wrote: »
    Yes that's true.
    Our rate is fixed until June 2016, and mortgage was due to finish in June 2031initially, but with term reductions and overpayments the mortgage is set to finish in September 2018.
    We requested that overpayments are used to reduce the mortgage term.

    Nationwide have told us that once the overpayments reduce the term to June 2016, we should start saving the overpayment in another account, or we will be subject to charges.

    Woolwich told us the same thing. We have a ten year fix, ending in 7 years time, and cannot shorten the mortgage term to less than 7 years. If you do, it will incur early repayment charges Sooo scary, it just makes it not worth doing!
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