Nationwide Overpayment Reserve and Underpayments?

WorldCitizen

Hi there,
when you make an overpayments, they go to 'Overpayment Reserve'.
Then you have 3 options to choose - to shorten the length, to lower the monthly payments or neither of them.
My question is - what option to choose to have an opportunity to have the Underpayments or no payments at all up to 'overpayment reserve' if there is a need in a future?
As I understand when you choose to lower the monthly payments or shorten the length, then the overpayment reserve's amount goes straight into that and you don't have the opportunity to have any underpayments in the future, is that true?
So do I need then to choose the third option - to leave the term and payments the same?
TIA

getmore4less

I would think the safest option would be to withdraw some/all the reserve and then pay mortgage as normal, potentialy less chance of errors due to missed/underpayments

WorldCitizen

Thanks for your reply.
There is no option anymore to withdraw/take back any overpayments.
I just want to put myself in a safe position. Of course I need to have an emergency fund. But... if I can do something with overpayments I would like to have the opportunity to have some NO payment months in the future, just in case.

Dandytf

Slightly different for myself as I missed the older ability to withdraw from overpayment reserve.
As my overpayments are sub 500 then I build up reserve and have been known to cancel standing order which is when natwide will take mortgage payment from reserve.
This means I'm better off in bank as no mortgage payment taken.
Not something to be used often though helps in short term.

WorldCitizen

I miss the ability to withdraw from overpayment reserve as well as my Remortgage completion date is today
Now I am wondering which option to choose for overpayment reserve to get my aim to have the opportunity in future to have 'no payment months' if needed.

Dandytf

WorldCitizen wrote: »

I miss the ability to withdraw from overpayment reserve as well as my Remortgage completion date is today
Now I am wondering which option to choose for overpayment reserve to get my aim to have the opportunity in future to have 'no payment months' if needed.

Is cancelling your mortgage payment manually an option for required months.

WorldCitizen

Dandytf,
as I know from Nationwide website, you need to call them to arrange the underpayments.

As about my question - which option to choose to have the opportunity in future to have underpayments or not payments up to 'overpayment reserve's' limit - I am still not sure...
If you repay £500 or more then it says you have the option of:
- reducing the term
- reducing the monthly repayment
- keeping the repayment and term the same.

Dandytf

WorldCitizen wrote: »

Dandytf,
as I know from Nationwide website, you need to call them to arrange the underpayments.

As about my question - which option to choose to have the opportunity in future to have underpayments or not payments up to 'overpayment reserve's' limit - I am still not sure...
If you repay £500 or more then it says you have the option of:
- reducing the term
- reducing the monthly repayment
- keeping the repayment and term the same.

Thanks +500 I'll keep quite.
And -500 website says call -I did once and advised no need to call.