Nationwide Overpayments

Z1ppy_2

Afternoon,

i understand from Nationwide that if we make overpayments the amount overpaid could be drawn back at any time with no fee. you write to them and they send you a cheque.

has anyone had any experience with this? is it as simple as that? are there any catches????

want to make some overpayments but in the current climate, would like the option of being able to get my hands back on the money if my circumstances were to change.

i am talking here about making regular overpayments of 500 per month and additional lump sum payment of around £40K (obviously there will be a fee for this)

thanks in advance.

catriona69

I would read your terms and conditions and then call them to double check the details.

cathw_3

Hi
Yes it really is that simple. We have about £8k in overpayments with Nationwide. My husband is a builder and we often find January/Feb a little tight for cash.
Last month I sent them a letter stating I wanted to take £500 out of the overpayment fund I had built up and asked for a cheque to be made payable to me.
Cheque from Nationwide turned up 5 days later.

Hope this helps.
Catherine

Z1ppy_2

Thanks Catherine,

We have two mortgages with Nationwide and if it really is that simple it would be great!

my next question which they were not able to answer when i spoke with them.

one of our mortgages is coming to the end of its fixed term. if i have overpayments saved up and then change to a different product with the same provider will i still have access to the overpayments fund?

spoke to a very helpful if slightly new person on the phone and they didnt know the answer to this one!!

JayZed

I don't know for sure, but I think the answer to your second question is no. If you switch to a new product then you're effectively starting a new mortgage, on which you have not made any overpayments.

On the other hand, as long as you stay on the (currently very attractive) BMR once your deal ends then you will continue to have access to the overpayment fund as you're still on the same mortgage.

As I say, I'm not certain of this, but that's my understanding of how it works.

bzd

I'd've thought JayZed's comments were correct, but don't forget of course that the replacement product would be for the amount you owe (i.e. what you would have owed minus the overpayments) so it'd be a new product for a smaller amount. Instead you could remortgage for more than that to give you a lump sum back (roughly) the same as your accrued overpayments. You'll know that you won't be able to put those back into the new product at a rate faster than £500 per month without penalties.

JayZed's right about sticking on the current product at BMR though -- there aren't any new products available that are better (last I looked, even the BMR rate isn't available as a new product)!

Ben

koexelek

cathw wrote: »

Hi
Yes it really is that simple. We have about £8k in overpayments with Nationwide. My husband is a builder and we often find January/Feb a little tight for cash.
Last month I sent them a letter stating I wanted to take £500 out of the overpayment fund I had built up and asked for a cheque to be made payable to me.
Cheque from Nationwide turned up 5 days later.

Hope this helps.
Catherine

Yes, this is an area where Nationwide are excellent.
The danger of overpaying on a convential type mortgage is that just after you have done it, the washing machine blows up or something... but with Nationwide you can draw it straight back

Joe_Bloggs

The £500 limit has existed from at least 2001, perhaps more astute Nationwide borrowers/members/etc can contribute to the point in time, where this fixed limit came to be ? Are there any views as to whether it should be increased or not.
J_B.

MORPH3US

OP, why would you incurr fees for overpaying £40k?

If its the same as my mortgage with HSBC, we can overpay max 20% each month in the fixed rate period.. anything over that and the whole overpayment attracts a fee...

However once the fixed rate ends (and we switch to the SVR) we can overpay what we want with no fees....

Might be better waiting to do that....

Joe_Bloggs

I would not be too hasty in making a 40K overpayment. The Nationwide do have a progressive penalty scheme that could serve as an exemplar to others.
There may be more considered views given your mortgage conditions and your general situation for savings.
J_B.
Edit
I should add that the previous posts were also considered a valuable insight

Z1ppy_2

Thanks for all your replies.

Morph3us. sorry should have been more clear. when the fixed term runs out in May i can make overpayments without a fee.

during the fixed period we are allowed to over pay £500 per calendar month without any fee.

Agreed on the BMR, thats what we will be doing come may but if rates start to rise we will need to put some equity into the property to remortgage to something more fixed. makes sense to get the benefit of doing this sooner rather than later if we have the option to pull the money out should we need it!

Joe Blogs, forgive me being stupid but what does that mean?? we assumed that rather than leaving our savings getting thick end of nothing it would be worth putting it against the mortgage (our only debts) to save paying interest on that amount of money...