Nationwide over payment - automatic reduction of monthly payment question.

Beki88

I will be making over payments and have chosen this option:

"For overpayments of £500 or more per month: We'll automatically reduce your minimum monthly payments the following month."

Does anyone know, once the over payment is made, roughly how long it takes for them to notify you what the new payment will be? When I chose the option it said I would be emailed the new figure but I can't find any information on how long that normally takes. Thanks.

Webby68

I'm doing this and normally the letter letting me know the new monthly payment arrives within 3-5 working days of making the overpayment.

FarmGirl78

Yep. I've been doing this too. And it's within a week easily. Usual 3 working days.

Sncjw

Why don't you pick to reduce the term so that the amount stays the same for the contractual part then least you know how much you have to pay each month 

Webby68

We're on a tracker and will be paying it off in the next 2/3 years. I like the reducing contractural amount and all I do is up the overpayment each month so I am paying the same amount each month e.g month 1 - 500 contractual payment + 500 overpayment = 1,000 paid, the over payment drops the contractual payment to 495 next month so I overpay 505 = 1,000 paid in month 2 and so on. Has the same effect of reducing the term but also means should I need to stop overpaying then the contractual amount is lower than it would be by reducing the term.