Overpayment of Nationwide mortgage

Daisymoocow

Just after some information if anyone can help please....

We are on a fixed rate mortgage with Nationwide and understand we can overpay by £500 per month. The mortgage goes out on the 16th of each month - so do i have until the end of the calendar month to make the overpayment or until 15th of the following month? ie.

Mortgage payment goes out 16th of Oct - If i make an overpayment of £500 on Oct 20th and another £500 on Nov 1st - will i get charged ERC or will it count as 2 separate overpayments for 2 separate months? Or would i have to wait until 16th Nov to make the second overpayment to avoid being charged?

Thanks

_Andy_

Have you asked NW? Best to check with them

getmore4less

Some people say they can pay multiple payment that total over £500 without a problem

Do your own research

KarenBB

You can one £500 payment each month without an ERC. It could be £500 on 1st Oct and then £500 1st Nov, it could be £500 1st Oct and £500 30th Nov, or even £500 31st Oct and £500 1st Nov. The overpayments must arrive on the accounts in different months to avoid the ERC haowever some msers have been able to pay more than £500 a month with paying an ERC

hillcats

ERC (Early Repayment Charge) payable on settlement of outstanding mortgage debt,
if entire balance is repaid whilst still inside any mortgage deal period.

Radionotme

I've got a Nationwide mortgage (two actually) and asked the same question a while back.
The simple answer is that Nationwide work in terms of calendar months. Pay in £500 on 30th October, and come 1st November you're free to pay in another £500.

Now to add some complications.
If you are overpaying with the intent of reducing your normal monthly payment, then £500 is fine. If you want to reduce the term of your mortgage by overpaying while keeping your normal monthly payment static, then pay in a penny less than £500.

The most important bit though is that Nationwide are generally very good about fixing things if they go wrong. If you realise that you've overpaid too much and would incur ERC's, or that you paid £500 when you meant to pay £499.99, then just email them and tell them what the problem is, and ask them to reverse the transaction. I've made three mistakes in overpayments so far and every time they've reversed it on request, no questions asked.

Jackinbox99

I recently had a nationwide mortgage, and i used to always overpay by £500 each month and had that go towards reducing the term. Did this for about 2 years no problems at all. Certainly worth doing as it made a massive difference to me.