How to increase NatWest monthly mortgage payment?

nigelsmith

Hello,
I'm struggling to understand how to pay off my mortgage more quickly.
My NatWest mortgage has 10 years to run but the fixed rate and penalty period ends in 2 years.
I asked to increase my monthly payment to £1600 [currently £1425], but was told this will not shorten the term.
I assume this doesn't matter as I will remortgage in 2 years anyway rather than go onto SVR.

However it seems they will treat this as £175 pm overpayment, which will then reduce the monthly amount required.
So the overall payment will therefore be below £1600!
Is there a way to calculate the "overpayment" amount required to ensure a monthly payment of £1600?

I'm told the alternative is to reduce the term, which carries a £35 fee.
Is this the only way to set the payment amount at £1600?

I'm disappointed with the help given by NatWest and would appreciate any advice.

Edi81

Just pay a top up via faster payments. The amount of interest that you pay overall will automatically reduce thereby more of the capital will be paid. 

Over time, if you stay with NatWest the time to repay will be shorter vs what it was at the start. 

nigelsmith

So the savings I make are identical if I overpay rather than shorten term?

Thrugelmir

Yes.

The mortgage term itself is contractual. Once the current fixed product ends then you will the flexibility to request a change to the mortgage term if you so wished.