Nationwide overpayments - getting them back?

RichardS

You can also get the repayments back over the phone - if it's less than £5000 you can do this without having to sign forms etc (so they told me anyway)

IKON

Badgergal wrote:

So the online thing doesn't allow you to make overpayments online or see the overpayments you've made?

Hi Badgergal, I have a morgage with nationwide and make regular overpayments to it.As I also use their online banking service I can confirm that you can use the internet to make the overpayments to your nationwide morgage.What you have to do is set up a bill payment using all of your morgage details a/c number ect.You can then transfer money same day into your morgage a/c.The payment is updated overnight so your new balance shows up the next day.I have withdrawn some of my overpayment once in the past.Had to make an appointment to see someone in branch and after she checked a few details morgage payments up to date ect she was able to tranfer the money out of my morgage a/c, and into my Nationwide current a/c 3 working days later.Hope this helps IKON

Badgergal

Thanks, very useful.

I have to confess I am not sure how the overpayments work - are your monthly mortgage payments reduced if you overpaid with, say, a lump sum?

RichardS

You have that choice (with Nationwide anyway). When I started making overpayments I asked them to keep my regular payments the same (so in effect you are overpaying by a bit more than your overpayments)

Badgergal

So if I just make the payments and don't ask them to do anything, what will they do - automatically adjust my monthly payments?

RichardS

You need to speak to them about it I guess - thats what I did. I expect the standard prcedure may be for them to redcude your regular payments automtically (Im not certain though). I requested they they did not do this for me.

frible

We have made overpayments on our 2 year tracker with Nationwide. You have the choice of reducing your monthly payments or shortening your payment term, you have to speak to either the branch or the helpline to do this. Once that is done any payments you make are defaulted to the same option.

Although I seem to remember that reducing the term was only available if a specific amount was paid in. In our case this was £500 which is the monthly limit before redemption fees get charged, I think this varies on different deals. So if you pay less than £500 in a month you may only be given the reduce payment option.

Joe_Bloggs

I have a Nationwide mortgage. I also have online access to it. I make overpayments that I requested to reduce the term. Payments are made throuh the Paynebts & Transfer section of my Flexaccount. I requested that all payments are to reduce the term rather than reduce monthly payments. There is no obvious minimum limit I can pay The payments are not for regular amounts and can made at anytime. The maximum is £500 a month before I would face a 1% penalty on the amount over £500 multiplied by the number of years left in the discounted period of this tracker.
J_B.

skippy64

J_B can I ask did you arrange that request in branch,via telephone or by the online message service on the website. I only ask coz I make overpayments but I had not thought until now about getting the mortgage reduced in years to go, only as a means of creating payment buffers for some months in the year when monies have been tight. For me that situation has now changed this year so we now have a steadier flow of income to throw at the mortgage.

Joe_Bloggs

@Skippy64
I requested the reducing term 'payment treatment' situation by contacting the mortgage center telephone ( 08457 30 20 10).
To some extent the mortgage term is an artificial deadline when you make numerous overpayments. A minor point is that by choosing the reduce the term situation you give yourself more headroom to make larger total payments as the £500 is on top of the regular repayment.
I estimate my modest overpayments will knock 7 years of a 20 year mortgage. The reserve I have built up is a poor man's mortgage repayment insurance.

It is also a coincidence that 12*£500 = 2*£3000. This is the mini-cash isa allowance for two people. I have chosen to fill a 5% mini-cash ISA with e-savings funds before April 6th rather than overpay the mortgage with interest taxable cash.
J_B.