Overpayment nationwide

Yorkie1

I'm on a fixed rate and now planning my first overpayments (how exciting!!).

If I ring up and make a £499 payment over the phone today using my debit card, then make another one on say 5th August, will that take me over my limit? i.e. Is the payment limit on a rolling monthly basis, or every month (July, August etc)?

Thanks

uzubairu

Yorkie1 wrote: »

If I ring up and make a £499 payment over the phone today using my debit card, then make another one on say 5th August, will that take me over my limit?

No it won't.
It is per calendar month.

littlemrtinkle

if you are finding the £500 pound overpayment restricting you, fill out a mortgage change form and reduce term.

Jackinbox99

Yorkie1 wrote: »

I'm on a fixed rate and now planning my first overpayments (how exciting!!).

If I ring up and make a £499 payment over the phone today using my debit card, then make another one on say 5th August, will that take me over my limit? i.e. Is the payment limit on a rolling monthly basis, or every month (July, August etc)?

Thanks

I assumed mine was up until the next normal payment day. So, my mortgage comes out on the 5th of each month. In the past ive made an overpayment of £500 on the 1st of the month, and then £500 again later in the same calender month. With no penalties.

Then I just setup a Standing Order with my bank to overpay £500 to Nationwide every month at the same time.

It hasnt made much difference this year to the ERC, ive paid of £8000 extra off my mortgage and its reduced the early payment charge by 200quid. Still, every little helps!

uzubairu

Jackinbox99 wrote: »

In the past ive made an overpayment of £500 on the 1st of the month, and then £500 again later in the same calender month. With no penalties.

Then I just setup a Standing Order with my bank to overpay £500 to Nationwide every month at the same time.

It hasnt made much difference this year to the ERC, ive paid of £8000 extra off my mortgage and its reduced the early payment charge by 200quid. Still, every little helps!

That's similar to what I do.
£500 goes in first then the extra goes in a little later in the month.

My ERC has droppped by over £500 since January this year.

Evilm

When we were looking at our new mortgage to buy a new house (mid 2008) for which a section was going to have to be Interest only Nationwides rules were that if you paid off some of the capital they wouldn't change your monthly payment amount until the end of the fixed period. For us that was a deal breaker since we were fixing for five years and therefore wouldn't get the benefit of the overpayments and would keep paying interest we didn't need to pay! We changed mortgage lenders!

Previously when we were on a fully repayment mortgage we changed the term of the mortgage to 16 years so we were overpaying £100 a month and could still put in up to £500 a month ad hoc as and when we had it. I didn't do that every month so never had to worry about ERCs.

Thrugelmir

Nationwides rules were that if you paid off some of the capital they wouldn't change your monthly payment amount until the end of the fixed period. For us that was a deal breaker since we were fixing for five years and therefore wouldn't get the benefit of the overpayments and would keep paying interest we didn't need to pay!

Although the repayment wouldn't have reduced the interest charged would. So at the end of the term you would have owed considerably less.

Or did you want to reduce your repayments as you made overpayments ?

col_redvers

Just confirming that Nationwide's computer will automatically pick up any overpayments greater than £500 (if you are on a fixed rate) and charge you an ERC on the whole amount (not an ERC on the excess over £500 - argh!).

I must try the £500 overpayment and then seeing whether smaller payments later on in the month will generate the ERC.

Radionotme

Nationwide are good about moving payments around though. Email them and ask them to refund all monies above the £500, so that you don't incur charges, it'll likely be sorted before the end of the week.
Then, since its August next week, you can almost immediately pay it straight back into the mortgage with no ERC's

stphnstevey

Just a note, I was told that with an interest only mortgage there is no point reducing the term as it doesn't effect the monthly payment, even with overpayments - (ie 5% on 100k with a term of 25yrs is same annual interest annual as 5% on 100k over 1yr term)

Also, you can ask them not to reduce your monthly payment. This effectively means your normal payment pays a bit more off the mortgage.

Maybe the trigger is a single payment of >£500? All those that have said they pay more are paying in chunks of <£500.

Gonna try to SO of £500 each this month and see