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Nationwide mortgage switch - overpayment reserve

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Nationwide mortgage switch - overpayment reserve

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SanneSanne Forumite
485 posts
Eighth Anniversary 100 Posts Combo Breaker
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Hi,
We are now able to switch our deal with Nationwide and decided to stay with them. We’ve built up an overpayment reserve over the last two years but when I go through the online application to switch I’m not clear what happens with this. 
Looking through the Nationwide website and reading the offer I’m not any wiser either. Has anyone switched recently who can let me know if the overpayment reserve that was built up is removed or remains available on the account to underpay later on if needed? (Original mortgage was two years ago so not losing any other rights that older mortgages might have). If it’s removed by default, can I call them up to keep it before switching online or do I then need to switch on the phone - and if I switch on the phone with advice, does that change anything re them doing affordability checks etc? (I’m the main income earner and on furlough so with a much reduced household income which might mean affordability fails. Before I get shot though, even if I was to lose my job we could continue paying the full mortgage for at least another year from savings).
Thank you!

Replies

  • jaxkesajaxkesa Forumite
    267 posts
    Part of the Furniture 100 Posts Combo Breaker
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    I switched with Nationwide a few years ago and remortgaged away from them last year. Both times, I had to call them to ask them to use part of the overpayment reserve. They emailed me a basic letter which I had to sign, scan and email back confirming that I was happy for them to 'use' my reserve and wouldn't be able to borrow it back.

    They did it all straight away and I was then able to complete the switch online with the lower LTV and it was all done done without advice. It seems a bit old-fashioned but must be the way they do things. Presumably if you don't call, they just keep the overpayment reserve in place.
  • SanneSanne Forumite
    485 posts
    Eighth Anniversary 100 Posts Combo Breaker
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    Thank you - it seems to give the LTV including the overpayment reserve (though the amount outstanding on the switching tool is different to the one I can see when viewing my account on the app... only by a few hundred though); I might need to give them a call to check as it would be silly to lose it as it won’t change the rates on offer...
  • SanneSanne Forumite
    485 posts
    Eighth Anniversary 100 Posts Combo Breaker
    ✭✭
    If anyone finds this later on, I’ve chatted to Nationwide and they say you keep the reserve.
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