I know Martin has covered mortgages and overpayments recently, after looking into my own I wanted to raise this issue and ask what his advice would be. Also does he think this is fair of Nationwide ?
I have been in a fixed deal for the last 4 years, it ends next September
I started making overpayments about 2 years ago regularly overpaying £225 a month
As my monthly overpayments are under £500, Nationwide put these payments into a ‘Reserve’
There is now £7845 in this reserve - it will be held there and only applied at the end of the product - 5 year deal.
My issue is - this is a large sum however I am not receiving or gaining any interest on this amount.
Is this a standard in the industry ?
Is nationwide benefiting from interest on this amount?
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For overpayments of less than £500, Nationwide will keep your minimum monthly payment and term unchanged and adjust your minimum monthly payments only at the next change in interest-rate, which is usually when the current fix ends.
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