Overpaying mortgage with Nationwide

Just taken out my first mortgage and want to start overpaying.
Currently pay 500 a month and would like to overpay another 200 a month. I'm on a 2 year fixed rate of around 3%.Does anyone know if I overpay will it reduce the length of the loan? I don't wish to overpay just so next months payments are cheaper.
Basically what I'm saying is if I keep overpaying will I get to finish my 2 year deal with nationwide early,say 18 months for example so I can start a new better deal?


  • I don't believe that is how it works... I think overpayments reduce your total loan value which in turn will reduce your overall term from say 25 years to 24. It won't affect your 2 year deal. I don't think it makes payments any cheaper either. If you look on the "Mortgages" tab you will find there is a mortgage overpayments calculator which you may find useful :)
  • It depends on how the mortgage company apply the payments, or how you ask them to apply them.

    You want them to take it off the term of the loan but they may reduce your payments instead. You can ask them to change it but this won't affect the term of the deal you have
  • Petal88Petal88 Forumite
    263 Posts
    Eighth Anniversary 100 Posts Combo Breaker
    It definitely won't affect the length of your 2 year deal - but might affect how much you pay each month. Call them first to check if it would, as you should be able to change that :)
    Mortgage Apr '15: £316,384
    Mortgage Oct '17: £305,399
    Daily interest at start: £38.23
    Daily interest Sep '17: £12.09
  • AnotherJoeAnotherJoe Forumite
    19.6K Posts
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    What Petal said. If you overpay it will reduce how much you have left to pay at the end of the immovable 2 year period. They may automatically reduce your payments when you overpay but likely it won't make much practicak difference, just a couple of pounds probably so I really wouldn't worry about it, and you can always up your overpayment to compensate.

    You should check what overpayments are allowed as well.
  • emgemg Forumite
    1.4K Posts
    Part of the Furniture Combo Breaker
    I dont know if it is the same for all their products but I am with Nationwide (but no longer in my fixed period) and if I overpay small amounts (less than £500 at a time) then it just reduces my term but if i pay in a lump of over £500 then it gives me the choice of reducing the monthly payment or reducing the term.
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 in bonus points

MSE News

Ask an Expert: Scams

Watch MSE Katie's answers to your questions

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals