Taking overpayment back out temporarily

I have a question about my mortgage.

If my mortgage has an over payment on it of about £90K (in this case it's with Nationwide), is it possible to take back out around £20K some of that £90K, and then pay it back in again a year or two later?

Would this mean doing a whole new agreement with reservation fee etc or is there an easier way to do it?  If I ended up paying a reservation fee I suspect it would work out more expensive than just taking a short term unsecured loan if I am going to pay the money back in only a year later.

Comments

  • It depends on the exact mortgage you have, when you made the overpayment and when the annual anniversary of the account is. Without more detail the answer is possibly, but probably not, with more detail people should be able to give you an specific answer. 
  • Pat38493
    Pat38493 Posts: 2,498
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    It's a Nationwide mortgage taken out in August 2013.  It's the type where you can normally overpay 10% each year.  

    Looking on their website, it looks like you can't just take the over payment back out without basically requesting a new loan, presumably with a reservation fee involved.
  • kingstreet
    kingstreet Posts: 38,615
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    IIRC entitlement to borrow-back ended on mortgages taken after March 2010. Here it is;-

    Borrow back

    If your client(s) took out their mortgage product deal with Nationwide on or before 29 April 2009, they will move/have moved to our Base Mortgage Rate (BMR) at the end of their deal. Your client will also have access to borrow back and payment holiday facilities. The BMR is guaranteed to be no more than 2% above the Bank of England base rate. If your client chooses to switch to a new mortgage product, they'll no longer have access to the BMR or its facilities and will revert to our Standard Mortgage Rate (SMR) which has no upper limit or cap.

    If your client(s) took out their mortgage product deal with Nationwide on or before 3 March 2010, they will move/have moved to our Standard Mortgage Rate (SMR) at the end of their deal. Your client will also have access to borrow back and payment holiday facilities. Please be aware that if your client chooses to switch to a new mortgage product, they will no longer have access to these facilities.

    If your client(s) took their mortgage out with Nationwide on or after 4 March 2010, they will move/have moved to our Standard Mortgage Rate (SMR) at the end of their deal. Your client will not have access to borrow back and payment holiday facilities.

    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • jimjames
    jimjames Posts: 17,498
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    Pat38493 said:
    It's a Nationwide mortgage taken out in August 2013.  It's the type where you can normally overpay 10% each year.  .
    I had multiple Nationwide mortgages, all have the ability to overpay 10% pa. Only the original one from 2006 allowed me to withdraw the overpayments, the ones taken out from 2011 onwards didn't have that ability so I suspect you won't be able to access.
    Remember the saying: if it looks too good to be true it almost certainly is.
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