Beware of making overpayments on Nationwide Mortgage

Fortyfoot

Over the years I have managed to make over payments of about two thirds of the original amount. I now have to get some money back and my monthly repayment has gone up by 25%

When I asked about the monthly repayment should I withdraw the whole of my over payments I was told it would be 3.5 times the current payment.

After several calls to them they say I will have to apply to extend the period of my loan and also pay a fee of £25.

This was certainly not made clear when I looked into over payments originally.

I am looking into taking the matter up with the Financial Conduct Authority.

Fortyfoot

getmore4less

As you made overpayments did the monthly payment go down?

Mahsroh

getmore4less wrote: »

As you made overpayments did the monthly payment go down?

I was just about to ask the same question.

Halifax do something similar. If you make overpayments they periodically review your repayments and amend you monthly payment to suit. I actually prefer this because it gives me more flexibility. I.e. if they reduce my monthly payments by £25 I simply increase my overpayment by the same amount, and as a bank of England rate change would be a trigger for them to review, due to overpayments, it actually means that a 0.25% increase would actually REDUCE my minimum payment (albeit i'd be paying more interest).

The downside to that, is that each time they do this review, everything resets, meaning I lose my ability to make underpayments or skip payments. It sounds like something similar has happened here.

Fortyfoot

getmore4less wrote: »

As you made overpayments did the monthly payment go down?

No, the term reduced.

Fortyfoot

Thrugelmir

Fortyfoot wrote: »

No, the term reduced.

Fortyfoot

If you've made overpayments over the years then this was something you were aware of presumably?

This was certainly not made clear when I looked into over payments originally.

Unless the person you spoke to was Mystic Meg or possessed a crystal ball then they could only tell you policy at the time. Believe it or not policy does change. As would have been stated in the updated terms and conditions issued with your annual mortgage statement. Your prerogative whether to read them or not.