Making overpayments to Nationwide

I am now pretty much in a position to start overpaying my mortgage. I'm with Nationwide and when I log in to the overpayment page it seems to suggest that I need to pay £500 or more if I want the option of reducing the mortgage term. Am I reading this correctly? I was hoping to pay around £200-250 per month on a direct debit and making other overpayments as and when I could specifically to reduce the term rather than my future monthly payments. Is this something I need to arrange with them over the phone or should I just wait until each time I've saved up £500 and do the overpayment then?


  • WorldCitizen
    WorldCitizen Posts: 117
    First Anniversary First Post
    As I understand the things stand as it's written on their website. I have the mortgage with Nationwide too, I overpay small amounts when I can, but my monthly payments have not been changed yet. If I correctly remember they will change them after the annual recalculation.
    I am waiting for that moment, it's interesting.
    Let us know if you manage to get the option of reducing the term rather the monthly payments with small overpayments! However it seems impossible when you read their info....
  • Righto. I might call on Monday anyway and ask just to make sure, and report back if I hear anything different. If I can't do it I'll just have to revert to the plan of making one off payments when I've saved £500. Guess it puts people off overpaying in such a way that would deprive Nationwide of interest payments.
  • didabuf
    didabuf Posts: 115
    First Post First Anniversary
    As WorldCitizen said i also believe anything under £500 will change your payment at the end of your fixed rate. 
    For that reason i've only ever payed £500 but interest is payed daily so it is worth paying it off as and when you can.
    Because assuming you would re-fix your rate, your payment amount would change anyway.
    I always get a letter with my overpaymentd advising my new MFD so maybe it would be worth spending a couple of morths paying as and when and see what happens, you may find it more rewarding to pay off the lump sum to see the change but some people love sending small payment bacuse they know they wont spend it.
    Mum to 13year old triplets, just trying to save the pennies.
    I'm a saver not a spender.
    Mortgage Free: Dec 23 - Age 38. £112500 gone in 11 1/2 years.
  • joedenise
    joedenise Posts: 16,388
    First Post Name Dropper First Anniversary
    I was one of those who used to make small payments as and when.  I think it was worth it because of the daily interest.   The final payment was just made once our endowment paid out which was nearly a year before the mortgage was due to finish.  Our was an interest only mortgage.

    Our previous mortgage had a condition that you could only pay extra in £500 (but that wasn't with Nationwide), the problem with that was that whenever we got near the £500 something would breakdown like the washing machine and end up spending it so we didn't put it on the credit card.

  • Viking_mfw
    Viking_mfw Posts: 560
    First Anniversary First Post Name Dropper
    I'm with Nationwide and have only ever paid under £500 at a time and monthly payments have never changed (always within fixes). I think they only change monthly payments if you pay off £500 at a time (but it might be £1000). 
  • greenbee
    greenbee Posts: 16,052
    Name Dropper Photogenic First Anniversary First Post
    You can set preferences somewhere to say whether you want the payments to reduce the term or reduce future payments. Have a look around the website, and if you can't find it, they should be able to tell you, but I don't remember it being too difficult to locate. 
  • EmmaG04
    EmmaG04 Posts: 18
    First Post
    I think you can set your preference if you have online banking with Nationwide, but you will need to be on a laptop or computer to access your mortgage preferences.
  • Hi, 
    If you log into online banking and click on your mortgage account there are a few options on the left hand side. One id overpayments. You can set this to reduce term or reduce payments. Both only come into effect on payments over £500. However if you make a series of payments under £500 and at a point in time make one over £500 then the previous payments are also taken into consideration as part of that adjustment, if that makes sense. 
    Love the nationwide flexibility!
    O'Payments:2016 - £3641.262017 - £7779.282018 - £11,515.16MFiT-T4 # 59 - reduce mtg to £195,000; MFit-T5 - reduce mtg to £140,000Mortgage:01/2/2015 - £243,75031/12/15 - £235,906.7131/12/16 - £224,120.9831/12/17 - £210,224.0631/12/18 - £190,821.21Mortgage today £140,788
  • You can overpay what you like, just ring them and tell them what you want to overpay. We overpay every month by £200 and add any extra we can when we can. 
Meet your Ambassadors


  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449K Spending & Discounts
  • 233.8K Work, Benefits & Business
  • 605.9K Mortgages, Homes & Bills
  • 172.3K Life & Family
  • 246.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards