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Changing the term of Nationwide mortgage
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# 1
Daisy Duck
Old 22-12-2009, 6:32 PM
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Default Changing the term of Nationwide mortgage

Hello

I'm after some advice from those in the know about Nationwide mortgages please

We currently overpay by the allowed 500 per month (in the fixed rate period still). We save money alongside this with the intention of adding this when the fixed rate is up and there is no cap on overpayments.

I have read a post in this forum regarding changing the term of the mortgage and would like some clarification before I call Nationwide.

Can we simply call them and ask to reduce the term, thus raising our regular monthly payments? Do we need to tell them what term we'd like or can we say that we'd like to pay say 2000 or 3000 a month and they would be able to inform us when it would run out if that was our payment?

Hope I'm making sense!

Thank you for any help, it's much appreciated.

DD
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# 2
SoozyJ22
Old 22-12-2009, 7:03 PM
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I've changed my Nationwide mortgage term quite a few times. The way I do it is this:

- send them a message from my online banking asking them to post me the form you need to fill in to get the term changed
- once form's arrived, I call them up and say "hello, I'd like to change my term so that my monthly payment is xxx please" and they tell me which term would give me the closest amount to my xxx and exactly what the payment would then be.
- fill out the form with the term I was told over the phone and post the form.

It's all very easy and I've never had any problems.
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# 3
dimbo61
Old 22-12-2009, 8:12 PM
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You could also put the figures in "whatsthecost" and play around with the term until you get close to what you want to pay
Say your term is 25 years and you pay 600 a month
Then if term is 20 years you pay 675 a monthy
then if term is 15 years you pay 875 a month
I reduced my term by 12 years and payment went up by 500 a month !
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# 4
pawlala
Old 22-12-2009, 9:06 PM
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where's whatsthecost? (is it .com?)
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# 5
chirpchirp
Old 22-12-2009, 11:54 PM
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Try putting brett mortgage calculator into google and it will bring you up a calculator where you can put the amount you want to pay each month and it will tell you how many months are needed to pay it off.
April '09 M/OS=241,000. Beg Dec '13M/OS= 108581.80

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# 6
Daisy Duck
Old 23-12-2009, 4:53 PM
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Quote:
Originally Posted by SoozyJ22 View Post
I've changed my Nationwide mortgage term quite a few times.
Hi, thanks for replying

Another question for you if I may... have you ever extended your term again after shortening it?
If for example we take 10 years off but then decide after a few years that we'd like to add a few years back on, is this as simple as arranging to reduce the term or are we on the new shorter term forever?

DD
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# 7
JonnyBravo
Old 23-12-2009, 7:27 PM
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Quote:
Originally Posted by Daisy Duck View Post
Hi, thanks for replying

Another question for you if I may... have you ever extended your term again after shortening it?
If for example we take 10 years off but then decide after a few years that we'd like to add a few years back on, is this as simple as arranging to reduce the term or are we on the new shorter term forever?

DD
It's fine with a few proviso's. Such as it won't take you past your retirement date etc.
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# 8
SoozyJ22
Old 23-12-2009, 8:59 PM
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Quote:
Originally Posted by Daisy Duck View Post
Hi, thanks for replying

Another question for you if I may... have you ever extended your term again after shortening it?
If for example we take 10 years off but then decide after a few years that we'd like to add a few years back on, is this as simple as arranging to reduce the term or are we on the new shorter term forever?

DD
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.
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# 9
littlemrtinkle
Old 23-12-2009, 10:31 PM
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just reduced my term from the 23 years to 5 years Mental i know. I know it will be a hard slog but will be worth it in the end. My mortgage payment went from 550 to 1500 a month. And i plan to cover the increase through a combination of savings, extra money earnings (matchbetting, daily clicks, surveys, scratch cards etc) goodluck
Mortgage Start jun 2007 88500 Outstanding Balance 51000
Overpayments 2007 Nil 2008 1040 2009 7853 2010 10000 2011 aiming for 18000 (6k so far)
The Early Bird Gets the Worm, but the Second Mouse Gets the Cheese!!
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# 10
pammyj74
Old 23-12-2009, 10:39 PM
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wow LMT thats an amazing amount to find each month from your original. Hope you dont struggle with that. Although it does sound good to only have 5 years left.
I reduced mine today from 21 to 14 so not a big a leap as yours but I am a single parent and so playing it safe! It only upped my payment by 127 which I know I can afford. Mine was with the halifax and I just rang them up and they did it over the phone, he also said I could extend it back again if I need to also with no problem.

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# 11
Daisy Duck
Old 24-12-2009, 5:53 PM
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Thank you so much for your replies

I am feeling happier about calling now and will organise changing our term straight after Christmas. Will drop back to give an update!

Thanks again.

Wishing a lovely Christmas to all the MFW!
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# 12
Daisy Duck
Old 29-12-2009, 10:33 AM
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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
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# 13
Ditto
Old 29-12-2009, 1:06 PM
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Quote:
Originally Posted by SoozyJ22 View Post
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?
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# 14
Daisy Duck
Old 29-12-2009, 1:12 PM
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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
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# 15
Daisy Duck
Old 29-12-2009, 1:15 PM
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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.
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# 16
Queen-Bee
Old 29-12-2009, 4:25 PM
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Quote:
Originally Posted by Daisy Duck View Post
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
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# 17
stphnstevey
Old 11-02-2010, 3:55 PM
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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?

Last edited by stphnstevey; 11-02-2010 at 4:15 PM.
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# 18
uzubairu
Old 11-02-2010, 7:39 PM
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Quote:
Originally Posted by stphnstevey View Post

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.
Mortgage at the start (July 2006 - 25 year term) = 113,000
MFiT-T3 No.19 (Target 1 = 0) (Target 2 = 35K)
Sep 9 Mortgage - OP Savings = 0
Jan07 111,807 Jan08 105,607 Jan09 97,343 Jan10 81,723 Jan11 61,785 Jan12 41,712 Jan13 13,157

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# 19
alfiesmum
Old 12-02-2010, 12:44 PM
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Quote:
Originally Posted by uzubairu View Post
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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