Moved the mortgate term from 23 to 10 years!

UK007BullDog

Nationwide lets you overpay up to £500 without penalties.

Floxxie

Does that mean that they allow you to overpay £500 a month as well as the % capital repayment per year?

lapat

Financial_Savvy wrote:

Guys

I didn't know that I could do this, but I have moved the mortgage term from 23 years to 10 years on my mortgage. This means the payments are higher and therefore the mortgage is paid off much sooner!

I moved it to 10 years as there is no fee to close the mortgage if you have 10years or less remaining when the fixed mortgage product come to and end and goes onto the SVR.

For those that can't overpay, or hit the limit on the overpayment allowance each month please consider this as an option to become mortgage free!

well done to you

lets hope you dont fall foul to any mishaps etc

stphnstevey

Is overpaying just as good as reducing the term? I know that they often limit you to a certain percentage when overpaying - so there is only so much you can do this way.

Financial_Savvy

Hi stphnstevey

Yes overpaying has the same affect as reducing the term in terms, but you want to make sure that the provider keeps the standard monthly payments the same and reduces the term, otherwise they could reduce the monthly payments and keep the term the same. Does that make sense?

Some providers do limit how much you can overpay. Defo check first.

Let us know how you are getting on.

stphnstevey

You wrote:

"I moved it to 10 years as there is no fee to close the mortgage if you have 10years or less remaining when the fixed mortgage product come to and end and goes onto the SVR."

Is that every mortgage or just your provider?

Financial_Savvy

Hi,

I would check with your provider, this is with Nationwide, but I am not aware of any others that offer this service. Nationwide do it because of loyalty.

Define loyalty in the personal finance market! It doesn't exist.

Cheers
Financial_Savvy

bootman

I am with Nationwide also. From next month I am moving from 13 years left to 4. Increasing the payment to what I have been paying every month including what I was overpaying. It started off at 20 years 3 years ago. I think it will be paid off in 2 years!

You really have to condition yourself to do it I think.

stphnstevey

I am really struggling to get my head around this and I am sure it is really simple!

I too am with Nationwide. I have 22 years left on the term and have just taken a 10yr fix. They allow an overpayment of upto £500 a month.

Potentially, how can I reduce the term like yourself Financial Savy?

Financial_Savvy

Hi stphnstevey

You can ask Nationwide who will send you a form to move the mortgage term from your 22 years to x years. The payments will obviously increase, but we can work out roughly what they are if we know the interest rate and the amount.

Don't forget through that overpaying up to £500 each month with no penalty has the same effect.

Come back if you need more help, that is what we are here for!