How do I make overpayments?

Sugarhunny1

Hi everyone,

As of Friday, I have a mortgage of approx 90'000. I plan on making O/P as much as possible although I am limited to 10%.

My mortgage is with Nationwide and is fixed for 3 years. How do I make o/p's? Do i just go into the branch and ask to overpay or write a cheque and send it off? or is there another way? What information do I need to supply when i make an overpayment?

Thanks for all your info. I'm now off to get my name on the MFW board!

Sugar xxx

financialbliss

To overpay:
a) Turn up at a Nationwide branch with cash or cheque and ask to pay against mortgage account – you’ll need your mortgage account no.
b) Via Nationwide internet banking – I just do a transfer from my current account, (also with Nationwide) to the mortgage account.


Payments:
Why do you think you’re limited to 10%?. I may be wrong, but generally Nationwide still allow you to overpay by £500 a month when on a fixed rate mortgage.

And if 6k (12 x £500) isn’t enough for your overpayment needs, then why not reduce your term. I've done this 3 times while on a fixed rate mortgage - result is that your monthly payment goes up, yet you can still overpay by £500.

I'd perhaps speak to them before you jump in with both feet, just in case you've a mortgage different to the Nationwide norm...

FB.

financialbliss

financialbliss wrote: »

And if 6k (5 x £500) .

Typo. 6k, ie 12 x £500. I'll amend original too...

FB.

Sugarhunny1

financialbliss wrote: »

To overpay:
a) Turn up at a Nationwide branch with cash or cheque and ask to pay against mortgage account – you’ll need your mortgage account no.
b) Via Nationwide internet banking – I just do a transfer from my current account, (also with Nationwide) to the mortgage account.


Payments:
Why do you think you’re limited to 10%?. I may be wrong, but generally Nationwide still allow you to overpay by £500 a month when on a fixed rate mortgage. Don't know where I got the 10% figure from, Other Half said we can o/p by £500 a month and we hope to do that for the next year.

And if 6k (5 x £500) isn’t enough for your overpayment needs, then why not reduce your term. I've done this 3 times while on a fixed rate mortgage - result is that your monthly payment goes up, yet you can still overpay by £500. We don't want to commit to more than we can pay long term.

I'd perhaps speak to them before you jump in with both feet, just in case you've a mortgage different to the Nationwide norm...

FB.

Thank you very much for your help. This is our 1st mortgage and we have learnt so much over the last 6 months from this site and the valuable information that is freely given by members like yourself. THANKS!

Two more before you go...... My 1st mortgage payment is taken 3rd May, Can I make an o/p before then?

My interest is calculated daily, when my normal mortgage payment is taken, when does the clock start ticking for that month, should I try and pay the o/p on the 4th? Sorry if any of these seem stupid!

Sugar xxx

financialbliss

Sugarhunny1 wrote: »

Two more before you go...... My 1st mortgage payment is taken 3rd May, Can I make an o/p before then?

Possibly. If you have an account number, then you should be able to. Just checked my own mortgage account - mortgage started in mid March. I made first overpayment of £500 on 2nd April despite first mortgage payment not coming out until 7th April.

Nationwide mortgages are daily interest. I try to pay on the 1st of the month every month to get the payment in as early as possible.

Hope that helps...

Just before I disappear, have you seen this? May or may not be interested?

http://forums.moneysavingexpert.com/showthread.html?t=1402631

Financial Bliss.

littlemrtinkle

1). You can overpay your mortgage from any online bank , just set up a payment transfer or standing order. I transfer money directly online from halifax to nationwide mortgage.

2) Nationwide allow you to shorten the term at no extra cost as many times as you want. I was finding the 500 max a month a restriction, so i shortened the term by 5 years by filling out one form.