Nationwide £500+ overpayment.

MrsR1234

Just a query really as I've searched and can not find an answer. 

I've been making small overpayments on our mortgage, which have been reducing our balance. This month I have made an overpayment of £650. I have it set, so that an overpayments over £500 will reduce my term. 

My balance reflects the £650 payment, which should make at least one, but more likely two months reduction, but there has been no change to the term length when viewing online. 

Does anyone know how long after the payment being made I should expect to see a change to the term?  I presumed this would be automatically done and then perhaps a letter, but so far my online gives no indication of a term change. 

la531983

They likely wont change the terms unless you specifically ask, which will likely require a full credit check.

If anything they would use the overpayment to reduce the monthly payments going forward, but again you likely would have to ask. Ive just asked Barclays to do the same.

MrsR1234

Nationwide automatically reduce payments when an overpayment of £500 is made, unless you have stated your preference is for the term to be reduced. 

I have already done this, and this is recorded on my account, so they should be reducing the term as per the request they have already had. 

Barclays will have their own policies around overpayment, which may be different to nationwide. 

RobfromCornwall

If memory serves, you'll get a letter confirming the overpayment and how that has affected the term.