Stop overpayments Natwide

Dandytf

Only asking MSE,rs before I start new reduced hours.
To assist in making up losses 2days wages per week.
What happens.if I call natwide to stop overpayments.

Currently there is 1760 total overpayment.

Last few months of 5yr fixed rate -18 remain term.

molerat

Dandytf wrote: »

What happens.if I call natwide to stop overpayments.

The overpayments will stop !
http://www.nationwide.co.uk/support/support-articles/manage-your-account/mortgage-overpayments/overpayment-overview#tab:Overview

Dandytf

Does the reduced balance continue and overpayment reserve stay as it is now?

I appreciate I can stop overpayments though what I'm not sure of is what happens to 1760 I built up.

I didn't qualify for borrow back allowance when I switched to 5yr fix.

Thanks in advance.

AnotherJoe

Dandytf wrote: »

Does the reduced balance continue and overpayment reserve stay as it is now?

I appreciate I can stop overpayments though what I'm not sure of is what happens to 1760 I built up.

I didn't qualify for borrow back allowance when I switched to 5yr fix.

Thanks in advance.

Well they are hardly likely to steal it, so aside that possibility it will just remain there.

Dandytf

Does the 1760 continue to reduce interest or is it kind off frozen with no further interest reducing purpose

jayII

You won't pay interest on the 1760.

Alternatively, you might be able to reduce payments or stop paying your mortgage until the reserve is used up.

You need to call N'wide to clarify, as it will depend upon the particular mortgage you signed up for.

Dandytf

Thanks When I read the earlier natwide link I calculated I could use overpayment reserve in effect stop paying mtg upto 5 months-not a bad option though I would only use that as last resort.

With no interest on the reserve which has in effect already been debited from mtg balance.

Does the new balance start with interest added once I revert to original payments.

Is there any benefit if I can mange overpayments until June when I can swap deal or doesn't that make any difference at all

I appreciate lots of questions ahead of reducing hours permanently which I've never had to request.

jayII

You pay interest on what you owe on any particular day--that amount increases as interest is added each day and goes down each time you make a payment (it goes down more, the more you pay).

Try looking at the mortgage balance today, tomorrow and the day after and you'll see that it increases each day, due to interest added. Then look at it a couple of days after your payment goes in.

Overpayments reduce the amount you owe, so are always good for your mortgage--assuming you can afford them and don't get yourself into financial difficulty by overpaying more than you can afford.

Dandytf

Thanks All

I'll find the time to call Natwide, and hopefuly beging reduced payments and work hours very soon.

I did enjoy overpaying before any rate rise, though looking at latest Natwide fix's I think I have a simple 5 or 10 year choice to make,,after unemployment 2011 unfortuantely I'm unable to swap lender or term.

As I've been paying 5.19 during latest fix,maybe i'll save a percent or 2 to keep payments lower which will be a help whilst budgeting.

Exciting times with more time a home for health reasons.