Mortgage overpayment reserve

mkman150

Hi There,
I have been overpaying my mortgage and have built up an overpayment reserve. I would like to use an overpayment calculator to work out how much my term will be reduced.
The calculator gives me the option to specify a one off lump sum, regular payment or both. My question is, should I choose both and then enter my mortgage overpayment reserve balance as the lump sum and then my usual monthly overpayment amount as the regular payment?
I want to make sure I'm entering the information correctly so that I can find out how my term will be shortened.
Thanks in advance for your help.
Rob.

Moneyminded

You might be best speaking with your mortgage lender and asking them to run the calculations for you. This will be the best way to get an accurate figure. 

mkman150

Ok, many thanks for your reply. I may well do that. Whatever happens I know that I am effectively reducing my term by overpaying. What is slightly confusing with Nationwide is that they allow you to choose whether to reduce your term by overpaying, but only if overpaying by 500 pounds or more. Surely though, even overpaying by less that 500 will essentially reduce the term anyway?
I will speak with somebody about this anyway.
Thanks again.

Thrugelmir

Depending on the amount you owe. To significantly reduce the mortgage term you'll need to overpay by a considerable sum.  Best advice is to switch to a repayment mortgage then overpay every month. This way you've the financial flexibility to either stop the overpayments or ask the lender to recalculate (in the process reducing) your standard monthly payments.