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Overpayment nationwide

edited 30 November -1 at 1:00AM in Mortgages & Endowments
42 replies 4.7K views
iceage3iceage3 Forumite
235 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hello

in june i have paid more than £500 pounds overpayments
i had no letter of nationwide does anyone know when this happens ie i paid more than 500 and then my mortgage went out.
I have just checked my account online and still saying junes mortgage amount ie how much i will pay in june

thanks for advice
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Replies

  • SimbaK2KSimbaK2K Forumite
    810 posts
    Part of the Furniture Combo Breaker
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    iceage3 wrote: »
    Hello

    in june i have paid more than £500 pounds overpayments
    i had no letter of nationwide does anyone know when this happens ie i paid more than 500 and then my mortgage went out.
    I have just checked my account online and still saying junes mortgage amount ie how much i will pay in june

    thanks for advice

    Did you pay the overpayment before the monthly payment went out but in the same month? I believe they only recalculate any overpayments made after the normal payment has been taken. Suggest you call them and they may do it manually if not.
  • iceage3iceage3 Forumite
    235 posts
    yes i did the overpayment before as my dd goes out on 25th of each month its going to be tricky to pay £500 after dd gone out.

    can anyone else confirm this is true?
  • Sorry, I'm a bit confused about your issue. Are you saying that your monthly mortgage payments have remained the same, even though you have made an overpayment? If so, then perhaps the bank is reducing your repayment term rather than your repayment amount? I made a large overpayment the other day and asked the bank (Abbey) to use the overpayment to reduce the term of the mortgage (i.e. keep the monthly amount the same) because it'll help me to reduce the mortgage balance even faster.

    If your problem is that you don't think the overpayment has been applied to the account, then you should ring your bank to check, though they always say to wait upto 5 days for the transfer to go through.
  • lee636lee636 Forumite
    460 posts
    It could be a case that when you overpay you have to do it before a certain date (not just before your DD) as they have to calculate & update the debiting amount. Your best bet is to call them as Simba suggested.
  • iceage3iceage3 Forumite
    235 posts
    i paid £500 and more early in month my dd went out on 25th of this month ,i havent had any letter but it will change tonite has its july 1st tomm i will see if new payment comes on .
    i got a message about confirming that my payments will go down after making £500 or more.
    does anyone think this is best policy to reduce payments or reduce term or keep every thing the same.
    thanks in advance
  • KarenBBKarenBB Forumite
    1.1K posts
    Could you tell us how much your monthly payment usually is and how much you paid earlier in the month? I've had experience of overpaying with n'wide and If you give me the figures I should be able to tell you why you've not had a letter.
  • iceage3iceage3 Forumite
    235 posts
    i have paid my mortgage and £501 pounds its just i paid before my dd went out .
  • KarenBBKarenBB Forumite
    1.1K posts
    At n'wide your mortgage is due on the 1st of the month but you can make the payment any date in the month and it's not arrears. If you mortgage payment is £400 for example and you paid £501 the computer would think see that it got £501. And would see £400 as the monthly mortgage payment and £101 as an overpayment as it wouldn't know if you're going to pay again in the month. When the DD then collects your normal monthly payment the computer would see all of that £400 as an overpayment. Once the DD has collected the overpayment for the month would total £501 but your payments are only recalculated if you computer sees an overpayment of £500 or more as 1 lump sum. If it's split into one of £400 and one £101 your interest would be reduced but your payment wouldn't be recalculated. Hope I've written this clearly enough to make sense.
  • KarenBBKarenBB Forumite
    1.1K posts
    If you overpay by £500 (as a one off lump sum - on the same day as your DD or the next day) he payment or term is recalculated from the next month ie July.
  • iceage3iceage3 Forumite
    235 posts
    hello
    so i have made £501 overpayments but in £100s (5 transactions),so the nationwide computer wont see this has a overpayment only if i make £501 in one go.
    is that right.
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