Natwest not allowing partial overpayment 19 May 2022 at 4:48AM in Loans 8 replies 539 views

MPEARSON

Hi all

A couple of days ago I used the Natwest app to try to "get a quote" on partially overpaying my personal loan - I was hoping to get new monthly payment if I do this without reducing the term.
In the app, above the "Get quote" button, there was an FAQ -

Can I make partial overpayments?    Yes, you can make a partial overpayment at any time

I pressed "Get Quote" button and it gave me a full early settlement figure.  This wasn't what I was after, so I thought I'd call them to make the partial overpayment over the phone. 
I was surprised to be told that because a full settlement figure had been requested on the app, I was now unable to make a partial overpayment for almost a month (until that full repayment figure had expired). 
I want to pay off about 1/2 of the loan, which is currently £30k, so quite a significant overpayment that will reduce my interest and my monthly repayment.

https://www.natwest.com/loans/existing-customers.html
The above webpage says "You can make overpayments or additional payments to your loan at any time. "


I also have a letter that was emailed to me from Natwest that says:

WHAT IF I CHANGE MY MIND OR WANT TO REPAY MY LOAN EARLY?

You can make overpayments to your loan at any time but if you do this you will be charged additional interest at the rate

applicable to your loan.

I have searched the natwest website, the app, my terms and conditions, and everywhere I can think of.  I cannot find any reference to not being able to make a partial overpayment, in the few weeks after requesting a full settlement figure.  

I've lodged a complaint and they said they'll get back to me soon.
I just wanted to check if anyone else here has had a similar issue with NW, or any other bank?  Is this a standard thing?  
Just trying to get my facts straight before the complaints dept call, so if anyone has any comments or suggestions, I'd much appreciate.
Thanks in advance.

[Deleted User]

Assuming you have all the payment details, just make a faster payment from your current account.

MPEARSON

Thanks, yes I can see the sortcode and account number on mobile banking so that's an option.
Just unsure whether it defaults to reducing the monthly payment or reducing the term, as I want to be sure it does the former.

mjm3346

They told you what to do

"I was surprised to be told that because a full settlement figure had been requested on the app, I was now unable to make a partial overpayment for almost a month (until that full repayment figure had expired). "

so why not just wait rather than them possibly refusing a payment or applying it and reducing the term?

Thrugelmir

Unlikely that the monthly payment will be reduced. As this is a contractual change that both both parties would need to agree to. Normally overpayments simply reduce the term as the debt is ultimately cleared quicker. 

MPEARSON

Thanks all.
Two reasons I’m not keen on waiting a month
1 month interest on £15k is over £100, so I’m losing out by having to wait.
Also the funds have come from a debt consolidation loan, so it really needs to be put to its intended use asap (it was a condition on the new loan agreement)
I’ll wait for them to get back to me before attempting a faster payment directly to the loan account.

MattMattMattUK

MPEARSON said:

Thanks all.
Two reasons I’m not keen on waiting a month
1 month interest on £15k is over £100, so I’m losing out by having to wait.
Also the funds have come from a debt consolidation loan, so it really needs to be put to its intended use asap (it was a condition on the new loan agreement)
I’ll wait for them to get back to me before attempting a faster payment directly to the loan account.

Did you check with Natwest before taking out the new loan that they would actually agree to reducing the monthly payments rather than reducing the term if you made and overpayment?

MPEARSON

Yes it states on their website
https://supportcentre.natwest.com/Help-with-your-product/Loan/913206872/Can-I-make-an-extra-payment-on-my-loan.htm
“ you can choose if you want to reduce the term of your loan, or keep your original term and reduce your monthly payments.”

Ergates

Did they offer any explanation as to *why* a partial repayment couldn't be made because of something done in the app?   That seems a somewhat arbitrary limitation - it's not like people don't accidentally press the wrong button in the app.

Is it possible to go back to the bit in the app you used and see if there is anything there that might have warned you that requesting that quote would stop you making a partial repayment.

If not, tell them this.