Nationwide - When can you make a mortgage payment?

Anon

Possibly a stupid question, but my Nationwide mortgage payment is taken by direct debit at the end of the month (think that I must have been asked when I would like to pay when I took it out).

Would moving it to the beginning of the month save any interest (as clearly the space between payments would be the same and interest is calculated daily)?

Could I pay now, rather than waiting until the normal payment date?

Would cancelling the DD breach any of the T&Cs (as without cancelling, I would end up overpaying beyond the limit and get hit with an ERC)?

I am considering switching (discussed on a separate thread) and therefore was wondering whether I could get a payment through early before an ERC is calculated.

Many thanks

Anon

Robert_Sterling_3

Nationwide usually allow you to overpay by any amount up to £500 per month.
If you do so they keep track of how much extra you have paid and you can have payment holiday ot ask for some or all of the overpayment back.
GR8

Anon

Thank you Robert - I have been overpaying but in this instance I really need to know when the mortgage payment is due/can be paid - is it anytime in the month (therefore I could pay now) or the date currently set by the Direct Debit (in which case I would get an ERC paying before 28th as I paid 28th February, if that makes sense)?

Many thanks

Anon

MrC-117

Don't cancel the DD. Speak to Nationwide if you'd like to pay earlier in the month and get them to move it.

I think I understand what you're asking. You'd have to pay the first two payments quite close together, e.g. one on 28th March and the next one on 2nd April, then the 2nd of each month after that. You'd save money in the first month (as it's almost like an overpayment) but after that it would be the same.

Anon

Thank you - considering remortgage and therefore trying to minimise ERC and as I would have no way of controlling when the transfer would go through, I was wondering if moving the payment would be possible to at least remove that month's payment from the ERC.

If Nationwide offer paying in branch, by transfer from their bank account or DD, would cancelling DD really cause any issues (as moving it would not be an opton for this month).

Many thanks

Anon

Cazza

Anon, I believe Nationwide charge interest on a daily basis, therefore it makes no difference exactly which day of the month you pay either your normal monthly payment or your overpayment on.

It is not a good idea to cancel the DD for the mortgage without at least contacting them and formally arranging your alternative method of payment first.

Hope that helps!

Robert_Sterling_3

I am almost, but not absolutely, certain that all Nationwide monthly payments are due on the first day of each month and that the amount of the monthly payment is added to the outstanding balance on that day. Although the monthly payment ids due on the first day of the month you are alloweed to pay it by Direct Debit on any day of the month up to the 28th of each month.
Telephone Nationweide and ask them about it.

Anon

I checked and it supports what was said above, payment is due any time in the month (28th being the last date it is possible with a DD). Payment before the DD would not prevent the DD being taken, therefore had to cancel it and set up a new instruction - if anyone is considering this, note that it takes 10 days to set up a new one. As interest is calculated daily, then in my situation paying it earlier reduces the amount of capital to be charged interest on and the ERC as it also means it may be possible to get an additional payment through before the ERC could be calculated.

Anon

getmore4less

When do you get paid? that is what determines the optimum payment date.

Your normal payment shoud be just after payday which for mosy is usualy near the end of the month. How close depends on how reliable you payday is.

Moving it to the begining of the month is a waste of time if the payment is allready just after pay day.

Just overpay what you can now. and set up the nect mortgage with the optimum date.

Robert_Sterling_3

I think that as the OP is overpaying he/she is not in a position in which he/she has to wait until they have been paid in order to be able to make a monthly payment.

getmore4less

Robert_Sterling wrote: »

I think that as the OP is overpaying he/she is not in a position in which he/she has to wait until they have been paid in order to be able to make a monthly payment.

Not relevent.

The optimum time to make payments is just after you have been paid for everyone.

Same with overpayments if you have a proper budget and can predict your cash flow.