Can I overpay before my first payment?

smcqis

Im with Nationwide and bought our house at start of June and my first payment is 15th July.

My aim is to overpay by 500 some months at start of each month, and I want to overpay in July (before my first payment).

TrickyDicky101

I see no reason why that would cause a problem as long as you stick to the (calendar) monthly limits (£500 pm with Nationwide). You are aware that your first payment is likely to be fairly substantial as Nationwide calculate on a repayments in advance basis and due to your first repayment being so long after the mortgage was presumably taken out you will need to pay interest on the full balance from advance date to first repayment date?

smcqis

thank you for your reply, yes I am aware and have budgeted for this. To overpay is it simply going into a Nationwide bank and hand over a cheque for the amount with my mortgaqge acc number or do i need forms of ID etc?

Yorkie1

I've not yet done it but I'm pretty sure NW don't require ID.

I have a vague recollection of someone's post before, that if you pay the extra amount before the standard DD goes out, the extra money is put towards the standard amount - and then the DD makes up the difference. It might then cause complications regarding what the surplus money from the DD is put towards - i.e. reducing term or reducing payments. Just make sure that that's cleared up.

elsien

I think when I asked nationwide about this, they advised leaving it until after the first payment so it didn't buggar up the direct debit. This was several years ago though, so the system may have changed, but I'd advise checking with them first.
Nationwide require id if you don't take the mortgage account number with you. I do remember having a debate with them about this on several occasions.

The_Palmist

if you have a plan for the next few months, wouldn't it be much simpler if you just ask NW to increase the direct debit by £XXX and change it back when you don't want to overpay.