Overpayment query (Natwest)

in_my_bumble_opinion

We are in a 2-year fix just now. Spoke to them today about making an overpayment (the full 10%). I had previously used their own overpayment calculator tool which had shown me the figures in terms of either reducing our monthly payments OR reducing the mortgage term.

It seemed obvious that reducing the term saves more money overall but when I phoned to ask for more details they only mentioned about reducing payments, no mention of term.

I asked about reducing the term and and they seemed almost shifty about it! The guy said I would need a term amendment application because it would change the monthly payments slightly. Fair enough but a bit confusing as their own tool showed no change in monthly payments if I chose to reduce the term.

I then asked how would I go about doing it, i.e: do I apply for reducing the term before, during or after my overpayment. I was told they can't advise about this?

I suppose I don't want to make a big overpayment and then have them turn round and say I can't reduce the term.

muhandis

I think you might have to do a formal application.

From Natwest's website -
https://supportcentre.natwest.com/Linked/ContextualHelp/913239762/How-do-overpayments-affect-my-mortgage.htm

It's important to note that overpayments do not reduce the term of your mortgage. This can only be done if you contact us to make an application.

in_my_bumble_opinion wrote: »

We are in a 2-year fix just now. Spoke to them today about making an overpayment (the full 10%). I had previously used their own overpayment calculator tool which had shown me the figures in terms of either reducing our monthly payments OR reducing the mortgage term.

It seemed obvious that reducing the term saves more money overall but when I phoned to ask for more details they only mentioned about reducing payments, no mention of term.

I asked about reducing the term and and they seemed almost shifty about it! The guy said I would need a term amendment application because it would change the monthly payments slightly. Fair enough but a bit confusing as their own tool showed no change in monthly payments if I chose to reduce the term.

I then asked how would I go about doing it, i.e: do I apply for reducing the term before, during or after my overpayment. I was told they can't advise about this?

I suppose I don't want to make a big overpayment and then have them turn round and say I can't reduce the term.