Nationwide overpayment reserve query

TrickyDicky101

MadAboutMoney wrote: »

I don't have a reserve. I want to make an overpayment to take my mortgage to as low as possible without it being closed but I can't find any information as to what that figure is/can be.

Well, they havent closed mine at £75 so couldn't you just take it to say £200 then you won't have to worry about it?

Sobewannabe

I have paid mine down to £100 and they take £0.60 out a month as mortgage payment. The overpayments are sitting there ready for me to use when I need them.

MadAboutMoney

Thanks for the information, I think I will pay overpay it down to £1k as the payments will be £6 per month and I'm sure they won't write-off 1,000 given your own examples.

MadAboutMoney

MadAboutMoney wrote: »

Thanks for the information, I think I will pay overpay it down to £1k as the payments will be £6 per month and I'm sure they won't write-off 1,000 given your own examples.

I spoke to NW and they said that as long as there is a balance and payments are being made, they won't close the account.

They WILL close the account if the balance is low and no payments are being made...but 'low' is not defined.

So I opted to leave approx. 700 on the account with an expected monthly payment of approx. £5.

I also asked that if the algorithm currently in power decided to close an account, would the borrower have time between being notified of said closure and the actual closure to drawdown to prevent it happening.

No, they wouldn't.

Anyway, thanks for the help and advice.

Alex1970

I have approximately £850 outstanding, stretched to 2038. The monthly payment is £5.33. I’ve done this in order to always have the option of drawing down my overpayments as opposed to taking out a loan at a much higher interest rate than 2.75%, should I ever need money for expensive items or repairs. Basically I keep it open so I always have access to cheap money.