Nationwide Mortgage Overpayment

supermonkey

Hi All,

I have a Nationwide Mortgage, where large over-payments I can choose whether to reduce monthly payments or reduce term but small over payments always just reduce monthly payments.

In the past, I have just overpaid when I can, but often lower than the threshold to reduce the term.

I am considering overpaying £50 per month, but to avoid the main payement reducing each month, I am wondering cancelling the DD & setting up a standing order for a fixed amount (approx the current payment + £50) so that the payment doesn't reduce. Effectively, my mortgage payment would reduce slightly & overpayment would increase slightly each month.

But am I going to have any issues with Nationwide if I cancel the DD? Even though I'll still be paying, I'm concerned what action they may take when they have notification of cancelled DD.

MovingForwards

Why don't you keep the DD set up as the normal monthly payment then make your over payment by standing order?

If they reduce the monthly payment increase your SO payment to include the extra?

Have you spoken with them and asked them not to reduce your monthly payment?

chelseablue

I have a Nationwide mortgage and overpay a small amount, and the main payment doesn't reduce.
As far as I'm away its only an overpayment of £500 or more where you can choose whether to reduce the monthly payment or term

My standard monthly payment is £791 and I asked Nationwide to increase the DD to £800 so yes a very small overpayment at the moment :rotfl:

Chrism03

If you ring them they should be able to set the DD to be what ever you what above the minimum.

I.E You shouldn't have to setup two payments. Whenever we overpaid we always asked for the DD to be £500 (the mortgage was ~£280 per month)

Takmon

When i took out my Nationwide mortgage they asked if i would like over payments to reduce the term or reduce the payment and i chose reduce the term. I overpay every month by bank transfer and the payments remain the same. So you probably just need to ring them up and ask them to change the default option for over-payments on the account.

Nebulous2

Nationwide are very flexible. Look at the - do nothing option here.



Repaying £50 extra a month should not reduce the monthly payment.

nyc_451

My mortgage is with NW. I think it said somewhere in my t&c that any overpayments would reduce my monthly mortgage payment and if I wanted to reduce the term instead, I had to phone them up. So that's exactly what I did, took 2 minutes.

My dd is £490 and I overpay whatever I can by transferring money via the app. I wouldn't want to have a dd for overpayments as they vary each month.