Nationwide update Mortgage Term online

Dandytf

Hi mser's

Noticed today Natwide have update mortgage term option, does this still point to being re assessed as existing Customer with credit checks etc.

250.36 1.74 until mid 2023 12 yrs 4 mths 

If I choose update term to 10 years

293.82

saving 1702.45 -are they using fixed rate 1.74 until mid 2023.

overpayments will reduce from +100 to +56.48 per month.

Is this a valid option to work towards 10 rather than 12 years, it could be possible to achieve +100 overpayments again, not immediately.
My concern of course is the 'update term' button online, it appears to be added as I'm sure the message used to request a tel call when changing term.

thanks

Thrugelmir

Dandytf said:

Noticed today Natwide have update mortgage term option, does this still point to being re assessed as existing Customer with credit checks etc.

Contractual changes will be subject to human intervention. As the lender has regulatory responsibilities under affordable lending rules, duty of care etc.  Thereby avoiding potential misselling accusations. 

Dandytf

thanks mser's.

Rather avoid any unnecessary rejection, overpayments continue. 

Thrugelmir

Dandytf said:

thanks mser's.

Rather avoid any unnecessary rejection, overpayments continue. 

Online product switching involves no such requirements. 

Overpaying has the benefit of reducing future financial stress. 

Dandytf

Confused, I see now this term change would need some kind of 'Application'
What would rejection mean if not accepted, only playing with existing calculator.
I appreciate overpayments on existing terms offers more control as such.
Max lowest term would be 9yrs 10mts 2yrs 6 mths less term, very tempting even ahead of future rate rises.

thanks

Dandytf

thanks appreciated, mser's correct as no sign of waiting checks.
I've gone ahead with this term change 9yrs 10 mths.

Just to let you know that, following your request, we’ve now updated your mortgage term.

Amazing.

Sncjw

How do even afford this mortgage on top of your bills and debt when you only earn 750 a month. 

Dandytf

Sncjw said:

How do even afford this mortgage on top of your bills and debt when you only earn 750 a month. 

That additional info is available through various posts.
p.s. Since mser's helped speed up my change of employers Tax code, its 860's a month.
Back to Mortgage I have been paying 350 per month from 2yrs fix 250 per month.
I deem latest term change to be already 'paid' lowering overpayments of 100 to 52 per month.
The difficult part could be if Interest rates rise above 350 per month, I haven't used Natwide base rate calculator recently, though can check at my own convenience.

thanks

Dandytf

Quick calculator, If as simple example the rate I'm asked to pay...
Rises from 1.74% up to 5% -overall rate.
Then my current 350 per month is almost wiped, not exceeded.
If history were to surface and I'm asked to pay 2009 rates of 6.19%, then I probably wont have internet access!

thanks mser's

simon_or

Sorry I'm just curious, what do you gain by reducing the term from 12 to 10 years? Surely you can just overpay and achieve the same savings in interest paid?

Dandytf

simon_or said:

Sorry I'm just curious, what do you gain by reducing the term from 12 to 10 years? Surely you can just overpay and achieve the same savings in interest paid?

Agreed, though I'm slightly surprised that Nationwide allow term change online without any further checks, which is great option only restricted to which retirement age is selected.
Actually seeing agreement with lowered term, only means I need to work up to +100 again i.e. +48 per month, (52+48).
Then I'll review from that point to establish what can be achieved.
Mortgage term is only with what I can afford, remembering next few years potentially rate rising years. 
I hope this term reduction online continues to be available and that I can agree further reductions in near future years.

thanks