Stay on Nationwide BMR (from pre 2009) ?

PieMistress

That's a very useful point that I hadn't thought about. I am certainly not getting that interest rate on my ISAs and I was unaware it was so easy to get it back. WOW, that is a real eye-opener. Goes to show what you can learn from others (and actually start ticking off things on your to-do list with regards to finances!). Thanks to both of you really appreciate it!

PieMistress

I just spoke to someone at Nationwide who confirmed that I am eligible to "borrow back" the overpayment.  Further investigation revealed I am only getting 0.1% interest on my savings with Nationwide! There wasn't a huge amount in there but promptly put it into the BMR mortgage anyway. Every little helps! So this just means although my monthly payments will stay the same, the overall interest I pay p.a. will reduce?

TrickyDicky101

That depends on how you have your account set up (which you should be able to tell via NW's internet banking facility - can't remember if it's also available via their app too).  I seem to remember I had it that mortgage payments would remain the same [after overpayment] until the next change in interest rate, but there are options to reduce the monthly payment or keep payments the same no matter what.

EDIT: Just realised that wasn't what you asked!  Yes, interest charged will be lower as you have a lower outstanding balance owed.  

PieMistress

Hi yes I am sure I have set it up so that the monthly payments stay the same (only changing if the BMR goes up/down). Everyday is a school day and I am happy I have learned something valuable here (probably common sense to most people but I was unaware I could borrow back which gives me some reassurance should I lose my job, as I work in quite a fickle industry).