Overpaying natwest mortgage online

lufc7

Hello all, I have looked high and low a answer but can't find it.
I have had a mortgage with Natwest for almost 12 mths and since the 1st payment leaving our account we have been chipping away at the balance by transferring via faster payments the odd £20 here £70 there etc and after a few days it shows up on our account.
Anyway our DD payment has never changed (don't want it to) but I'm hoping to overpay a larger amount this month excess of £500. We are still no where near our 10% for the year but, wondered if paying this lump sum as we have been paying the smaller payments will cause any issues, does anyone else do this? I would call the bank but for the forsee able future I am doing night shifts so wondered if any of you could help. Thank you in advance.

Thrugelmir

If you are crediting funds directly to the mortgage account. Then it's unlikely that your repayments will be adjusted. The next time your repayment changes is most likely to be when your interest rate next changes. At this point the repayment will be recalculated to repay the outstanding debt over the remaining term of the mortgage.

lufc7

That sounds fine, presuming in the mean time I will still be benefitting from overpaying due to the daily interest being on a lower amount. Or am I confusing myself? Ie even a overpayment of £10 is still beneficial?

RavingMad

Yes, you're benefitting from paying less interest, which is usually calculated daily on the outstanding mortgage. If you were on a lifetime tracker mortgage, extra payments would chip away at your term remaining.

lufc7

Thank you, so presuming no one on here has had issues paying like this in the near past. It's very difficult to find any info on paying direct online via faster payment at natwest. Even online it mentions calling them for any overpayment lumps sums which is essentially what I've been doing even if only been £50-£100 and it's always gone off the viable balance. Thanks for your replies

lufc7

Just as a small update the NatWest mortgage account accepted the larger overpayment via the normal way that I use for small overpayments. It took the normal 3-4 days to show up after being electronically transferred frommy normal bank account.

wannabeprudent

If making payments below £1000 the term will reduce and monthly payments stay the same.

If a payment is above £1000 (via phone) then the default is above unless you specify you want term to stay same and monthly payment to reduce.

Never done it but that's what it says in the online account.

lufc7

wannabeprudent wrote: »

If making payments below £1000 the term will reduce and monthly payments stay the same.

If a payment is above £1000 (via phone) then the default is above unless you specify you want term to stay same and monthly payment to reduce.

Never done it but that's what it says in the online account.

I tried to find the answer on the online accounts but I couldn't find anything relating to my query. Don't get me wrong I presumed it was how you have described, but my smaller payments were not a regular overpayment. I have always from the beginning of the mortgage overpaid directly via for a better faster payments every time I wanted to overpay anything, be it £10 here £50 there etc hence I struggled to find out if it would be the same with a larger overpayment.
Because online it states any one off over payments should be done via the phone it doesn't state you can do it online like I have been doing and have done this month.