to reduce term or not?

moneysavinggirl40

SillySod wrote: »

With NatWest I overpaid by Visa. Unfortunately I didn't manage to find a cashback credit card that they would accept.
Around the time I was doing that, it was reported in the news that a shocking amount of people were using credit cards to pay the mortgage... I wonder if their questionnaires covered whether the CC would be paid off in full each month.


As for term, on my BTL the term is about 10 years with a monthly payment of about a quid a month, so by 2024 the £200 closing fee should be less painful

Nat West treat CC payments as cash advance i tried to do that with 0% purchase cc, so ended up having to do what you did; pay by visa. i asked over the phone if i could set up standing orders for regular payments and they said yes they would give us sortcode and account no. this means more control if you want to overpay by different amounts everynow and again, haven't done it yet as i haven't started my new deal. remortgaging in march 2013.

Thinking of going with another tracker for 2 yrs, keep term long, incase base rate goes up and this would give room accomodating higher payments but in the meantime with b.rate being 0.5%, monies can go into overpaying. what is attractive is that there won't be an valuation fee or conveyancing when switching to new deal which can be done online.

On your NAT WEST online account can you see your mortgage details? can you see your overpayment going in and then the interest going out? really strange when it goes down and then up again...

moneysavinggirl40

how come a quid a month? thats quite low?

SillySod

moneysavinggirl40 wrote: »

On your NAT WEST online account can you see your mortgage details? can you see your overpayment going in and then the interest going out? really strange when it goes down and then up again...

Yep. In my case monthly payment is taken on a different day to when interest is added. It's just like a current account statement with every payment/withdrawal noted. Turned up on my online banking out of the blue part way through the mortgage - saved many phone balance enquiries!

moneysavinggirl40

SillySod wrote: »

Yep. In my case monthly payment is taken on a different day to when interest is added. It's just like a current account statement with every payment/withdrawal noted. Turned up on my online banking out of the blue part way through the mortgage - saved many phone balance enquiries!

Indeed, I had to enquire what this account was that suddenly was added to my online banking, as i had not been informed that nat west would be doing this. i soon switched current accounts as they messed up my first 3/4 months free overdraft and i got charged. Having said that, they did compensate me with just over £100 for the mistake they made. i switched to first direct.

moneysavinggirl40

Beckyy wrote: »

You've summed it up yourself really, there's no need to reduce the term - you'll pay it off early if you OP anyway. You'll only encounter an early repayment charge (ERC) if you overpay more than the allowed amount within the fixed period (ie. first 2/3years of taking out the mortgage). After that period there is generally no ERC, however the interest rate isn't fixed anymore so most people remortgage to get the security of another fixed rate.

This is assuming you have a fixed rate mortgage for 2 or 3 years.

When i read NATWESTs 2 year tracker deal, 1st year ERC is 1% and 2nd yr is 0.5% so i guess if I pay off mortgage within the 2 year initial period there is a charge. so come the end of my 10yrs or in year 8 and assuming i go for 2 year deals from now till then, i will have finished my mortgage at the end of the 2 year deal but still have 10 more years left on the term..what happens in the last 10years once i've paid off the mortgage..do they have some hold..do I have to pay something extra because my original term was for 20yrs?