Nationwide Overpayment Options Incorrect Online banking

jimjames Posts: 17,489
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edited 16 January 2021 at 4:12PM in Mortgage-free wannabe
Not sure if anyone else has come across this but we've found that the options showing in Nationwide online banking for mortgage overpayments arent necessarily correct. In your online account you can set the action to take for payments over £00, decrease payment, decrease term or leave as is. Ours are set to reduce term but after recent overpayment received their letter with details of the reduced payment. Checked online again and yes it's set to reduce term.

Contacted NW and they said the mortgage account is set to reduce payments for overpayment despite the info online showing otherwise. It's now been reset and I've had to raise a ticket for them to reallocate the payments made already. 

Just thought I'd flag in case anyone has experienced the same or has anything they can suggest for how this happens
Remember the saying: if it looks too good to be true it almost certainly is.


  • Hi Jimjames
    Thanks for this. I have 2 NW mortgages, 1 set to reduce Term and 1 set to reduce monthly payments (as it's a huge amount so trying to reduce my monthly commitments). So far they have both been allocated correctly, but I shall keep an eye on it!
    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
  • caeler
    caeler Posts: 2,605
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    Interesting. I’m also with nationwide with OP set to term reduction. But I’m sure in a recent letter it said anything less than £500 will come off the monthly payment. I meant to read it all properly but I’ve not had a chance and (fortunately) my OPs are all over £500. Could this be it? 
  • On my mortgage nothing under £500 changes the payment, but upon anything over £500 being paid that all previous sub-£500 OPs are taken into consideration. 
    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
  • Yes, this is the case.
    Nationwide state that for any amount <£500 then it will be deducted from next months payment - despite what option is chosen.
    I have just started to make overpayments and if I do not have enough for a £500 payment, I will keep it until I do as I want to reduce the term only.
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