Overpayments, underpayments, fixed mortgage with Nationwide

lkmc01

Hi

Am I right in thinking that even on a 5 year fixed mortgage with Nationwide if I make overpayments I can still underpay in future to the same amount.

Their details are

When you overpay this builds up an overpayment ‘reserve’, which you can use to either reduce your monthly payments by a set amount (e.g. £50.00 per month), or stop making payments for a set period. You can use either part or all of your overpayment reserve to do this, but the maximum amount you can underpay by is the value of the overpayment reserve you have built up.
When you underpay, your monthly payment will be recalculated at the next rate change (variable rates only) or at the end of your product term, depending on which is first.


Does this still completly apply within the fixed mortgage product periods?

Thrugelmir

lkmc01 wrote: »

Does this still completly apply within the fixed mortgage product periods?

Looking at the website does appear so. May be worth checking when applying.

Joe_Bloggs

The best source for the most up to date practical interpretation of Nationwide's flexible mortgage products, from the past, is Nationwide.
I have never tried out these options, there may be others who have.

The overpayment limit is still 500 per month per mortgage. I think this should be increased to account for inflation.
J_B.

lkmc01

Since the mortgage is already up and running I thought I'd ring in. Must say I'm very impressed with how quickly Nationwide answer their phones. And very good customr service too. :shocked:

Turns out even on a fixed mortgage product I can make underpayments up to the amount I've overpaid.

So if I usually pay £500 a month, but pay £1000 each month for 6 months I can then not pay anything for a further 6 months (if I do so wish).

But if I usually pay £500 a month, but pay £1000 each month for 6 months and then want the 3 grand I've overpaid back straight away it wont allow it. I could get the 3 grand back only by not having to pay it over the following 6 months?