Nationwide mortgage overpayments

mrs_motivated

Hi all,

I have a nationwide mortgage fixed for 5 years on a repayment basis and want to overpay.

I have looked on their website and I can overpay upto £500 without incurring any charges. However, it goes on to say, that it will reduce my repayment next month, which I don't want. I would like to reduce the months left to pay.

Can anyone advise if I can do this? It does mention this on their website, but seems confusing! Which could be something to do with me been halfway down my second glass of Friday night vino :cool:

However I am to impatient to read it again and I am hoping one of the experts on here can confirm.

TrickyDicky101

Yes you can reduce the term instead (it's what I did too) - if you use their internet banking service, you should be able to select on there how you want overpayments treated.

stedwell

Just to add that you have to pay the full 500 in one month for them to reduce your term. If you pay less they sort it at the end of the year. However 1 penny more will result in an ERC. At least those are the terms of my fixed repayment.

eldaniel

I had 5 yrs fixed from Nationwide before current mortgage, but I don't remember all the details. I know that we overpaid £500 every single month and the amount was the same every time and the term was gradually reduced. Not sure though if we actually asked someone in bank to sort it out for us. We basically made a standing order for £500 each month. Hope that helps.

house_help

Online (or phone them) you are able to pick from the following three options for OPs of exactly £500. If the OP is below £500 they pick the 3rd option for you.

• Pay off my mortgage earlier by reducing my mortgage term
• Reduce my future monthly payments
• Keep my existing payment and term as-is. (At the next natural mortgage payment change, i.e. interest rate change, my payment will be automatically recalculated)