Unsure about overpayment rules

So my mortgage is £140000

I only took it out last month and already paid off £10k( I have posted about this already but this is a different question so bare with me.)

The rules are I can make overpayments in year 1 of 10% of the original loan so £14k

In year 2 I can do the same.

I'm with Nationwide and when I called them a few days ago they told me that because I paid a large overpayment in the first month of the mortgage this doesn't count towards my overpayment allowance for year one so I can still make an overpayment of 14k this year.

I was really surprised by this and I asked for clarification,they won't confirm this by E-mail but said the call was recorded....I have no reason to mistrust Nationwide and they've been great so far,however,every time I call I'm chatting to some quite young person who has to put me on hold and refer to someone else...so I'm suspicious that perhaps I'm getting wrong info.

Have any of you heard of something like this?...does it sound right?
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Replies

  • ExodiExodi Forumite
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    I've certainly never heard of this.

    I'd probably call them again to confirm this and record the call yourself. Let us know the outcome as this is very interesting (I have an upcoming mortgage with Nationwide and would also be looking at a significant over-payment... I see no mention of this in any agreements or online terms).
    Know what you don't
  • dano17439dano17439 Forumite
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    Give them another ring and speak to a different person and see ifyou get the same answer
  • DaveinlincolnDaveinlincoln Forumite
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    Just spoken to Nationwide again and they have confirmed what they said was correct
  • A_Frayed_KnotA_Frayed_Knot Forumite
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    If correct, then that is fantastic news for you. There is probably not that many who want and are able to pay a large overpayment within the 1st month of taking out their mortgage.

    Handy hint - you can keep to your first post on this thread and just post and ask questions as you go along, that way you have a "diary" you can refer back to, during your mortgage free journey. (hope you don't mind me saying).
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • DaveinlincolnDaveinlincoln Forumite
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    If correct, then that is fantastic news for you. There is probably not that many who want and are able to pay a large overpayment within the 1st month of taking out their mortgage.

    Handy hint - you can keep to your first post on this thread and just post and ask questions as you go along, that way you have a "diary" you can refer back to, during your mortgage free journey. (hope you don't mind me saying).

    I don't mind at all Frayed knot...it's an excellent idea,thanks.

    I'm just suspicious of the building society though,again I got through to a you g chap who,despite being very willing to help had to put me on hold and check,he wouldn't confirm in writing either as he said they don't like to broadcast this...but I did request that he made notes on my account and be date and time stamped the recorded conversation(as did I)

    So despite this I am confident that I can overpay 24k in this first year....assuming of course that I can find the money:rotfl:...that's the next challenge.
  • edited 7 June 2019 at 6:36AM
    A_Frayed_KnotA_Frayed_Knot Forumite
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    edited 7 June 2019 at 6:36AM
    I would be wary as well, however you could try after your allowance - a very small o/p and see what happens.

    I was near/at my limit, so phoned and asked how much could I o/p without fees, they told me and I o/pd that amount - then got a letter stating I had o/p my allowance :rotfl:, but since it was so small, they would waiver the fee (this time) :eek: wasn't worth arguing the point, they told me in the 1st place.

    You also have to watch (well I did) as if you have sub accounts (separate fee charge, etc) then for me it was 10% on each account/sub account, so I couldn't just pay 10% of the total mortgage - I had to break it down and allocate the o/p to each individual account, not that the BS knew Jack ****, I had to speak to the mortgage dept direct about anything like that.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • HazzanetHazzanet Forumite
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    If the format is the same as my offer, it's in item 10 of the document. From mine:
    Early repayment charges
    Early repayment charges are payable on this mortgage for the first 60 months after the end of the month in which you take the loan. The table below is for illustrative purposes, and assumes a start date of 01 May 2017.

    Please refer to the conditions below for the actual calculation method.

    No ERCs in the first month.
    4358
  • DaveinlincolnDaveinlincoln Forumite
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    Hazzanet wrote: »
    If the format is the same as my offer, it's in item 10 of the document. From mine:



    No ERCs in the first month.

    Thanks Hazzanet….well spotted....looks like i'm good to go then!

    Full steam ahead.:j

    That being said I just blew £368 0n a season ticket for Lincoln City and had a day at Market rasen that wasted another £50....when you think of numbers like this in terms of paying off your mortgage it dos make you think twice but we have to enjoy life too right?
  • fresh_cottonfresh_cotton Forumite
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    Mortgage-free Glee!
    does anyone know when banks typically apply the charge? as in, does it show on your statement straight away or is it a fee that is applied right at the end.

    Im with Halifax and know that I have exceeded the limit before however never been charged a fee - I have changed products and even reduced by mortgage term since however no sign of a fee
  • Zero_SumZero_Sum Forumite
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    Will this not come under the cooling off period within 1st couple of weeks law?
    So to me, its probably legit.
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