Nationwide Mortgage Paid Off - Beware!

jimjames
jimjames Posts: 17,490
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edited 29 June 2022 at 2:39PM in Mortgage-free wannabe
One of my mortgages with Nationwide has been cleared this week but rather than taking the outstanding balance by DD they've taken the normal payment amount which means my mortgage account is now in credit by hundreds of pounds. When I saw it happen I thought it would be automatically reversed and payment sent back the next day but after a phone call they've said it can take 15 days. I've got another one that clears next month so asked if they can make sure that they only take the outstanding balance which is £50 or so rather than the full amount and they've now amended the account to do so but I'll see what happens at the time.

With everything going on I was hoping to have a bit extra this month but with the DD going as normal it's not yet worked out that way so thought it might be worth alerting others to check if they have a very small outstanding balance with high usual DD and contact NW before to reset DD. Very surprised it's not their standard policy to only take the remaining balance, I thought the whole point of a DD was that it was flexible.
Remember the saying: if it looks too good to be true it almost certainly is.

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  • savingholmes
    savingholmes Posts: 26,851
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    Sounds irritating. Well done though on being so close to mortgage freedom.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • Why did you not get into conversation with nationwide a few months before zero?

    Sounds like you've kept payments "keep as is" - I'm with nationwide and done the same.

    When I'm nearing the end I will be phoning nationwide to "naturalise" the last payments to avoid this.

    Congratulations on becoming mortgage free by the way.
    £52,365 owing December 2017.Now for the final countdown..1st Jan 2021 - £29,316 -- 1st Feb 2021 - £28,809 -- 1st Mar 2021 - £27,309 -- 1st Apr 2021 - £26,811 -- 1st May 2021 - £26,315 -- 1st Jun 2021 - £25,811 -- 1st Jul 2021 - £24,311 -- 1st Aug 2021 - £23,809 -- 1st Sep 2021 - £22,305 -- 1st Oct 2021 - £21,798 -- 1st Nov 2021 - £20,292 -- 1st Dec 2021 - £19,783 -- 1st Jan 2022 - £18,276 -- 1st Feb 2022 - £17,762 -- 1st Mar 2022 -£17,248 -- 1st Apr 2022 -£15,713 -- 1st May 2022 - £15,202 --1st Jun 2022 - £13,703 -- 1st Jul 2022 - £13,184 -- 1st Aug 2022 - £11,665 -- 1st Sep 2022 - £11,144 -- 1st Oct 2022 - £9,822 -- 1st Nov 2022 - £9,298 -- 1st Dec 2022 - £7,572 --1st Jan 2023 - £7,045 -- 1st Feb 2023 - £5,516 -- 10th Feb 2023 - £5,518 Overpayment Pot @ 10th Feb 23 = £5,518 / Primed = £0 / Actual debt = £0!!!! "Yes, the medicine is harsh, but the patient requires it in order to live, should we withhold the medicine?" Hopefully at zero mortgage debt by December 2022 or very close to it. Determined for freedom! 🍻🥂🍸🍹.
  • jimjames
    jimjames Posts: 17,490
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    edited 3 July 2022 at 8:17PM
    Why did you not get into conversation with nationwide a few months before zero?

    Sounds like you've kept payments "keep as is" - I'm with nationwide and done the same.

    When the last mortgage was paid off Nationwide took the remaining balance not the monthly payment so I wasn't aware that any conversation was needed. I've not made any recent overpayments so it should have been clear on their system that the monthly payment was more than the balance outstanding. Maybe I'm being naïve but it seems a pretty simple calculation that if the mortgage payment is more than the outstanding balance then only take the balance.

    Not quite MF yet, but 3 out of 5 cleared!
    Remember the saying: if it looks too good to be true it almost certainly is.
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