How do you overpay?

clairecymru

This may sound like a really daft question but how do you overpay on your mortgage? I know I am allowed to overpay up to £500 a month with my nationwide mortgage and my plan is to overpay whatever I have left in my bank account at the end of each month. Do I have to set up a direct debit with nationwide which will be difficult because I dont know how much money I will be left with or can I just go into a branch with the cash and pay over the counter.

financialbliss

Hi Claire,

I too have a Nationwide mortgage, but I've also my main current account with Nationwide too.

I'm just about to drop off my fixed rate from April and I can get a better rate than the mortgage in savings, but when I was overpaying to the mortgage, I had an overpayment set up to credit the mortgage account on the first of each month.

I could also make one-off payments too. A long time since I've popped into a branch to make an overpayment, but if your current account isn't with Nationwide too, then this may be your easiest option.

If you sat down and worked out your income and outgoings and say you thought you should have £250 spare each month, you could set up a regular transfer to pay half of that straight to the mortgage each month, and as you encounter additional funds, you could pay this via branch or as a one-off transfer.

The reason why I say half of your expected surplus income is that we rarely have months of uniform spending, so don't throw all of your surplus income towards the mortgage unless you have already build up a good savings reserve, typically 3 to 6 months of outgoings is what is normally recommended.

Financial Bliss.

elantan

if you do online banking you can set up a standing order for nationwide and pay as and when you want to ... i do this with my nationwide account ... just paid £25 into the mortgage just there as we are at the end of our month and i had it spare ... good luck

JoolzS

Phone Nationwide and ask them. I am just about to start overpaying my Halifax mortgage and they couldn't have been more helpful when I phoned them about it. I was given the account number and sort code that related to my mortgage account to use with my online banking. Next month I will make a small overpayment and then phone to check that it went through as expected.

I also asked about paying in branch and was told that was OK as well.

It's definitely worth making a phone call to find out all the information you need. I absolutely detest making phone calls, but ended up phoning Halifax three times in one day last week and each time I got a very friendly, very helpful person on the other end of the phone. Obviously, I can't know that Nationwide will be as good, but it's got to be worth a phone call to find out.

Julie

Engeroosi

Just make a payment via online banking, it is simple and very addictive!!!