Making over payments or so we thought?

likeagoodbargin

We moved some 14 months ago and continued with Nationwide as our mortgage provider and took out a 5 year fixed term with them. We decided we were in a position to increase our over payments from £100 to £200 a month and thought this would be a good idea with the interest being calculated on a daily basis.

However, stupid as it sounds, we noticed back in November 04 that a mysterious £200 was being credited into the joint account and looking back in our records it was a regular occurrence, but we couldn’t figure out where it was coming from and we didn’t seem to worry as we were receiving £200 a month! So Christmas came and went and another statement arrived, so Hubby has just been into Nationwide to see if they can shed some light and they have said that it was the money that should have been paid off the mortgage, but as it didn’t have the correct sort code they refunded the money back into our account.

What can we do, we have lost over a year in over payments? Its so infuriating as our first child will be born in 7 weeks and we will have to stop the over payments. We are really cross, firstly with ourselves for not picking up on the situation sooner and secondly for Nationwide for not administrating a simply job of increasing an overpayment. Any useful suggestions, gratefully received?

cloud_dog

The question comes down to who and how the overpayments were set-up. If you did it via a Standing Order then I'm affraid you can only be cross at yourselves and Nationwide have acted appropriately.

If it was set up by Nationwide then the extra £100/£200 pounds would have been added to your mortgage payment (in my experience - am with Nationwide and have done something similar) so it wouldn't go out as a seperate payment; therefore you could reasonably ask Nationwide to consider making good on the fiasco, i.e. make a payment to cover lost interest (not the capital though).

I have to say that I find it amazing that you merely accepted the £200 monthly credits without questioning where it came from - a bit naieve or greedy on your part I think.

cloud_dog

robnye

i have to agree, i think you have been a little silly here

i have 3 different mortgage accounts with the nationwide (long story why), anyway the 1 of the accounts i pay and additional sum into , by setting the direct debit up myself.
another account i asked the nationwide to increase the monthly payments, thereby reducing the term of the mortgage by 5 years.

If i had been receiving £200 into my account every month I would certainly have queried it before now...........!

tcall

I can only agree, I'm afraid. From what you say it appears you not only kept quiet about the mysterious payments into your account.... you actually have SPENT it all as well!