Mortgage overpayment - confused

skm1981

We have a mortgage with Nationwide and overpay it every week which I believe goes into an overpayment reserve.  

We have our mortgage statement and we currently owe about £80,000 but have just over £4,000 in the overpayment reserve.  So our mortgage statement reads:

Closing balance as at 31st December 2019: £80,000
Overpayment reserve as at 31st December 2019: £4,000. 

Now, in my head, I'm thinking that we owe £76,000 because we've overpaid by £4,000, but my husband isn't so sure as he thinks that the closing balance shown could take into account the £4,000 overpayment.  Any ideas?

Thanks.

mortgagetakingages

I can imagine the reserve is to ensure you don't over pay more then allowed. If that's the case your husband would be right and closing balance should take it all into account. 

TrickyDicky101

If it's the same as mine (with NW) then you owe £80k you can just either (depending on when you originally took the mortgage out) borrow back the £4000 (to increase the total you owe to £84k) or underpay your monthly mortgage amount (and the unpaid amounts will be added to the total you owe and deducted from your reserve).  So it isn't a reduction in what you owe - it is an indication that you have some flexibility around your mortgage.