Nationwide overpayment options

da_rule

Another option could be (and it's what I do) to make your payments into a savings account that's paying a higher interest rate than you're being charged for the mortgage, then once a year use the contents of the savings account to make a large overpayment.

As you say, assuming you're on a fixed term product with Nationwide (that's what I'm on too), and make a payment of less than £500 they will just adjust your payments but not until the payments are recalculated. This will either be at the end of a fixed term, if you switch to another one of their mortgage products, or if you ask them to do it. Making an overpayment of £500 or more also triggers a recalculation, but you can opt to have the term shortened instead. If you have an online account with them there is an overpayments section where you can set your preference for large overpayments.

nicholbb

trailingspouse wrote: »

In the first month your overpayment will be £50, in the second month the actual mortgage amount will be a bit lower than £625 so you will be overpaying by '£50 and a bit'.

:doh:Thank you for this lightbulb moment, fairly sure there was an audible click when this added benefit fell into place.

nmjams

Great, thanks for all that
I'm going to go with the first option.
It will be a nice feeling knowing the mortgage will be over a bit sooner!