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Confused about Nationwide underpayment options
andrewf75
Posts: 10,424 Forumite
Hi all,
I've been made redundant, but have quite a bit in savings partly due to a redundancy payment. We've always been focussed on paying off our mortgage asap so I'm considering making a lump sum overpayment on the mortgage, but obviously as I no longer have a job I also need the security of money in the bank!
I was thinking I could make the overpayment and then if needed I could take a mortgage holiday or borrow back from our fairly large overpayment reserve (ca 25k), but apparently our mortgage doesn't have either of those features. Would I be able to effectively do something similar by making underpayments i.e. reducing payments to some minimal value in the event of being unemployed longer term? I'm not planning to do this, but I want to know it would be an option before I use my redundancy payment to pay off a lump sum!
Hope that makes sense! Advice would be much appreciated.
I've been made redundant, but have quite a bit in savings partly due to a redundancy payment. We've always been focussed on paying off our mortgage asap so I'm considering making a lump sum overpayment on the mortgage, but obviously as I no longer have a job I also need the security of money in the bank!
I was thinking I could make the overpayment and then if needed I could take a mortgage holiday or borrow back from our fairly large overpayment reserve (ca 25k), but apparently our mortgage doesn't have either of those features. Would I be able to effectively do something similar by making underpayments i.e. reducing payments to some minimal value in the event of being unemployed longer term? I'm not planning to do this, but I want to know it would be an option before I use my redundancy payment to pay off a lump sum!
Hope that makes sense! Advice would be much appreciated.
0
Comments
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Until the future becomes clearer you maybe better to continue to make your normal monthly repayments.1
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