Mortgage overpayments - who owns the money?

TKB_2

I have a variable mortgage with Natwest and have been overpaying by around £200 for the past 4 years. I have recently lost my job and have told Natwest that I want to use the credit on the account to cover my mortgage payments until I find a new job, to avoid defaulting on my payments.

They reluctantly agreed for me to use the credit to cover 3 months of payments but I still have not found employment. There is a remaining £6,000 of credit sitting on the mortgage account and I wish to know what rights I have over that credit as I am anticipating a fight when I ask them to extend the agreement and use more of the credit to repay the mortgage.

Am I able to insist that it is used to cover future mortgage liabilities or not? If they decline, am I able to ask for it to be refunded to me or do they now own the money?

Many thanks for your help!

Thrugelmir

Is there a credit balance sitting on the mortgage or has the balance you owe simply been reduced?

No one owns the money. You just owe less. The Natwest would normally revise your monthly repayments to take account of the overpayments. If you have no money to meet this then it's your issue to address.

Annisele

Check the terms and conditions of your mortgage.

The general position is that overpayments simply reduce the outstanding debt - they're not available to use for future liabilities. The general position applies unless the terms and conditions of your mortgage contract say something different.

Are you eligible for SMI?