NatWest 5yr fix overpayments

Jonny88

Hi

Just started paying my mortgage, it's pretty small, with repayments of 192 a month over 25 years. I'm looking to have it paid off in five to ten years, looked over the numbers and it's very doable. However I'm confused by making overpayments. I know I am limited to paying off 10% of the balance each year before I incur a small fee (5% reducing by 1% each year).

I've just made my first overpayment and believed I could have my term recalculated so my payments stay the same, however when I got my letter through Nat West said they have reduced my payments and added an overpayment of five pounds each month.. which will eat into my fee free allowance more and more as I make these overpayments.

How can I ask them to recalculate my term, I asked over the phone and they just said they don't automatically do it? I'm sure I read that I could chose the option to do that, but should I wish to stop paying for a month I wouldn't have the option like I do now? Can somebody clarify how this works, where to find the information and how to save myself some money while paying off early?

CFC

I'm sorry, your post doesn't make sense to me.
If you are asking how you can get your mortgage term changed, ring them up and ask them to do it. There may be a fee.
If you want to overpay, ring them up and tell them how much you want to overpay a month.
That's all I can help with.

Jonny88

I read that I could either,
Have my term recalculated
Or
Pay into a balance which I could use to take payment holidays

I want to recalculate but when I asked all I was told was that they don't automatically do it

CFC

Where did you read it?

Jonny88

Can't remember if it was on their website or in the stuff they sent with the offer, can't find it now though

thrifties

We have had several fixed term natwest mtge deals and always overpaid. You cant pay more than 10% of outstanding balance each year. Ring them up and check again as we have never had any problems.

HelenDaveKids

On nationwide you tick a box on their site to opt for reduction in payment or term, the default being payment. You can also reduce the term for £20 fee. I would have thought natwest would be similar.
Hth

lexington013

To the OPs question, yes you can have your term recalculated by Natwest. I too have a 10 year fixed term, 6 years in, however I am able to overpay 10% per year without penalty and reduce the term remaining by increasing the regular monthly payment for a £35 charge.
I took out a 25 year mortgage and have reduced the term by approximately 10 years by upping the monthly payment.
Hope this helps.