Natwest Mortgage Overpayments

creditcarddebt

Hi

I wonder if anyone can help me. I currently have a Natwest 2 year fixed mortgage over 25 years, and really want to start taking steps, albeit small steps, to overpaying on this mortgage to try and get the LTV lower when the 2 year fixed ends next August.

I phoned Natwest today to see how I can go about making overpayments, and they have confused me! Firstly she said that any overpayments would reduce my monthly direct debit and not my term, which in my mind will make no difference what so ever to my mortgage as the monthly amount paid will still be the same. I said this to her and she then said that my direct debit will remain the same and any overpayments made will in effect reduce my term although I am not technically reducing the term of the mortgage.

I do online banking and was hoping that I would just be able to transfer the overpayments to my mortgage account, but apparently it has to go into a suspense account first for which she gave me the bank details. So I made a payment of £5 to see what happens to it!

Does anyone have any experience of this with a Natwest mortgage because from some of the diaries I have been reading on here it seems to be much more straight forward for some!!

I know that the overpayments that I will be able to make will not be in the hundreds every month, but every little helps right??

megela

Hi,

I make direct transfers online to my Natwest mortgage from my Natwest current account. The mortgage has an 8 digit account number so I assume I could also make payments direct from other banks.

I've never heard of sending it to a suspense account first with any bank! Did you have a reference number so they could allocate it to your mortgage?

Have you got online banking with Natwest - can you see your mortgage online to make sure the payments get there? Seems unnecessarily complicated to me.

creditcarddebt

The woman I spoke to told me to put my mortgage account number and my name as a reference so they know where the payment has come from. I do online banking, so I will have to wait and see how long it takes for that £5 to show on there.

creditcarddebt

My mortgage accounts number is 8 digits, and I was really hoping that I would be able to just make direct transfers into the account online, like I can when transferring money between my other Natwest accounts. It does all seem far more complicated than it needs to be and am starting to wonder if she really knew what she was talking about!

megela

Have just checked my online banking and the mortgage also shows a sort code along with the acount number so you should just be able to set it up as a payment from your current account whichever bank you are with. I would try it with a £1 and see.

creditcarddebt

Megela, I have just tried that, I bank online with Natwest and my mortgage is with Natwest and it won't let me just make a transfer between accounts like I can when I transfer money into a savings account. So I tried to set it up as a payment, like I would if I was paying a company, and it says that the payee account (which is my mortgage account) does not exist! But I can see that it does because its showing along with all my other Natwest accounts.

BookWorm

Hi there

I have a NW mortgage that I make online payments to from a different bank via online banking and it works fine. When you called NW they should have given you the sort code and account number to use. Then you just set them up as a payee as you would in the normal way.

It's possible that the sort code may have been the same as the one showing in your online banking view but the a/c number will most likely be different. This is because they don't allocate directly to your mortgage - it will go into their holding account and they will reallocate from there.

As you have rightly said you also include your own mortgage a/c number as a reference - which will make it easier/quicker for them to allocate to your own account.

I find payments take 2-3 working days to show up depending on when you make the transaction.

With regards to OP's and reducing your DD payment - they haven't ever changed my DD amount due to OP's but if you find they do - just call them up and ask them not to

Hope this helps

creditcarddebt

Thanks BookWorm, so hopefully by the middle of next week I should be able to see the overpayment of £5 made. Fingers crossed!