Overpayment / Capital Repayment - what's the difference?

uzubairu

Joe_Bloggs wrote: »

@Smeli
I have a Nationwide mortgage and I can view the situation online. Can you do this with a Cheshire mortgage ? In my case overpayments tend to alter the capital after three working days. Were I to make an overpayment of more than £500 I would face an early repayment penalty. Is the Cheshire Mortgage fully flexible in that you can make unlimited repayments without penalty ?
J_B.

We're on fixed rate with the Nationwide (until 2016) and we overpaid by more than £500 every month last year (£9,000 in total) and we were not charged a single penny.
Received our annual statement last week and still no charges.

So far this month we have overpaid £1,000.

frazzermac

Hi I'm new here but this thread is exactly why I joined. I have a 5 year fixed rate with Santander and overpaying my mortgae has been exactly the same as everyone else, so now a feel a lot better.

They were taking my payments & taking them automatically as "capital repayments" then 3 months ago the letters stopped with the updates.

I phoned them and got the stories above, they offered me, keep the payment the same and reduce the term or etc etc after reading the tales it reinforces my idea that they would rather have you in debt...

Financial servitude as it were...

When they started dicking me about with the "overpayments or capital" I opened a Nationwide flexi account with the sole purpose of changing my mortgage provider when I'm out of my term in a couple of years..

& viewing online would be spot on:beer:

uzubairu wrote: »

We're on fixed rate with the Nationwide (until 2016) and we overpaid by more than £500 every month last year (£9,000 in total) and we were not charged a single penny.
Received our annual statement last week and still no charges.

So far this month we have overpaid £1,000.

lincoln-potter

Jonbvn wrote: »

They're basically the same thing. IIRC overpayments are kept in a separate account and can be returned to you on request, whereas capital payments cannot. This seems to be a common feature with several BS's.

really? I always thought overpayments could simply be drawn upon if you wanted to take a mortgage break not if you wanted to withdraw the money again.

Jonbvn

lincoln-potter wrote: »

really? I always thought overpayments could simply be drawn upon if you wanted to take a mortgage break not if you wanted to withdraw the money again.

Depends on your mortgage T&C's. I believe it is true for the Nationwide.

moneysavermum_2

uzubairu wrote: »

We're on fixed rate with the Nationwide (until 2016) and we overpaid by more than £500 every month last year (£9,000 in total) and we were not charged a single penny.
Received our annual statement last week and still no charges.

So far this month we have overpaid £1,000.

I too am on nationwide 2.5% bmr and overpay by £503 each month and no charges. Mine has no limit to overpayments.