Overpayments on a Nationwide mortgage. Reduction in term?

KTF

I have been overpaying for 15 months and my monthly payment hasnt changed at all. The same amount for the mortgage payment has been taken out of my account each month then I send over the extra overpayment using SO as they told me to.

The overpayment is showing on the mortgage statement and the overall balance has been reduced as a result but the term is still the same even though I have paid off nearly £4k from the capital hence my question to them.

When it comes to the end of the term I was planning to pull in the term myself but I thought they would have done it for me.

Edit: Maybe its different as I am on a fixed rate and it will all be sorted when the term ends...

AceCobra

Same as the above poster.
Fixed rate, overpaying for around 18 months of about 150 per month. Settlement date hasn't changed nor has monthly payment.

Martin.

Bargain_Rzl

KTF wrote:

So it seems that they only reduce the term if you overpay by £500 a month which seems odd because that will then attract the early repayment charge (I have a 2 year fixed mortgage).

I'm also on a Nationwide 2-year fix and although I have yet to make any overpayments (as my savings account is outperforming my mortgage rate at present) I assume that if you make an overpayment of EXACTLY £500 you will succeed in both reducing the term and avoiding a penalty charge.

There was a thread on this subject recently, let me see if I can find it...

KTF

That might be the case but it seems strange that £500 is the trigger when I would have thought any overpayment would have an effect. I am currently overpaying by £250 a month so I would have thought that this would have reduced the term as well.

Xh2oX

Read all the above with interest.

I have mortgage with Nationwide and am about to start overpayments. I also want to reduce the term. Is this possible if the extra payments are not £500 a month? I will be writing to them to say reduce the term, is this enough or is there something else i should be saying to them??

I will be paying probably by cheque at the branch and not by d/d or s/o. Amounts will vary each month.

Many thanks in advance

lynne1307

i could also do with knowing this, as i have a mortgage with nwide and would also like to overpay !

lynne1307

i could also do with knowing this, as i have a mortgage with nwide and would also like to overpay !

KTF

I have replied to their email asking why £500 and not some lesser amount and will pop into my local branch at the weekend if they havent replied by then.

Edit: To answer the q below. Yes they do but only if you overpay by £500 a month or more it seems.

TEDDYRUKSPIN

You need to notify the lender. Some lenders do it differently. As to reduce the monthly repayment and not the term.