Nationwide Mortgage - new fees and charges - Amendment to mortgage term.

stel_2

Hi,

I've just received the letter regards the Nationwide mortgage fees and charges referred to in another thread but I have concerns regards the addition of a general fee - 'Amendment to mortgage term - a fee is charged when amending the term over which you repay your mortgage'

Do I understand this correctly that if I've opted to reduce my mortgage term rather than reduce the monthly repayments amount then I will get charged an extra £20 for every £500 overpayment that I make?

Thrugelmir

The fee is for changing the term, if officially requested by you.

When overpaying you are not changing the contractual end date of your mortgage. So no fee is payable.

stel_2

Thanks for your reply Thrugelmir, it offers some reassurance.
The reason for my concern is that on the same day I received a letter regarding my mortgage stating that I had made a £500 overpayment and that as previously instructed by me, they have used this to reduce my remaining mortgage term.
I will try and contact them later today to clarify.

albo2002

speak to Nationwide.

In the past they've charged me £50 for changing the term of the mortgage and threatened to charge me a similar amount if I ever overpaid by more than £500 per month.

MrsManda

If you overpay more than £500 a month then you are charged. This is a standard T&C. Overpaying your mortgage and keeping your official payments the same thus reducing your overall term is not chargable as you are not officially changing the mortgage length, it's simply a consequence of you overpaying at your allowed amount.
Whereas if you asked to permanently reduce or increase your standard monthly payments you are officially changing the term of your mortgage and this is chargable.

• With repayment mortgages you can choose whether to reduce your monthly payment or if you are overpaying by more than £500, you could reduce the term of your mortgage. [overall, not in one month] You will need to advise us of your preference when you make your overpayment.

No overpayment charges
You can overpay on all of our mortgages as standard, and not incur any penalties.
If you are in a fixed rate or a tracker rate which has early repayment charges (ERC), you can overpay by up to £500 per month. If you exceed this amount there will be an early repayment charge payable on the entire overpayment amount.
On our Base Mortgage Rate, Standard Mortgage Rate and a selection of our tracker rates, you can overpay by as much as you want, when you want.

- Nationwide website

pb63

I'm also interested in this. So MrsManda, I like Stel overpay £500 per month. I get the letter saying we have reduced your term to xxxxx

If I'm reading your mail I won't be charged the £20 fee?

SimbaSimon

pb63 wrote: »

I'm also interested in this. So MrsManda, I like Stel overpay £500 per month. I get the letter saying we have reduced your term to xxxxx

If I'm reading your mail I won't be charged the £20 fee?

Correct, there was a thread on the Mortgage Free Wannabe board where someone had confirmed this is the case with Nationwide. If you request to change the term you get charged, if you make an overpayment you don't get charged.

pb63

Phew!! Found the link THANKS Simba but can't post as I'm a newb...

I wish Nationwide would communicate there intentions more concisely!! They have made a lot of people uneccessarily worried and I'm sure they will be inundated with calls and emails on this matter - all at a time when they cannot afford to do so if there profit results are anything to go by...

Anyway a big phew...We're still on track. :-)