northern rock and overpayments

kingkano

How do people feel about NR and making overpayments at the moment? We have an NR mortgage and a bit of spare money we were going to overpay to it. But we needed to be sure we can get it back if necessary.

Basically I was worried something happens (nationalised, sold off, whatever) and we can't get back the overpayments. Or the terms are changed somehow?

Karmacat

I have a Northern Rock loan, not a mortgage, and I fully intend, if my matched betting takes off, to overpay, and if possible finish it off. I didnt know you could get back mortgage overpayments from NR - I thought that was only Nationwide, but of course I've never looked into the details of a NR mortgage - that was just my supposition. Hope it works out for you.

kingkano

Karmacat wrote: »

I have a Northern Rock loan, not a mortgage, and I fully intend, if my matched betting takes off, to overpay, and if possible finish it off. I didnt know you could get back mortgage overpayments from NR - I thought that was only Nationwide, but of course I've never looked into the details of a NR mortgage - that was just my supposition. Hope it works out for you.

Obviously with a loan its no problem, as its a different situation. We had a NR loan from a while ago which we cleared once we moved

The mortgage is completely flexible. Overpay, underpay, payment holidays, withdraw your overpayments back (an overpayment fund/tally is kept same as nationwide). With savings rates tumbling our mortgage rate is close to the best ISAs now so we thought it just as good to 'save' in our mortgage if we can....

Karmacat

No, wasn't obvious to me! Good news to hear that you've previously cleared a loan from them. And very interesting about the flexibility of their mortgages, thanks for that too. I hope it *has* stayed the same, thats what you're checking, is that right?

Bumping up, hope someone can give you more feedback.

evab_2

You would need to apply to get the overpayments back and then they would do their usual checks. It's not as straight forward as just asking for it, there should be a bit on the bottom of your mortgage statement explaining what would be available.

Ev

kingkano

Karmacat wrote: »

No, wasn't obvious to me! Good news to hear that you've previously cleared a loan from them. And very interesting about the flexibility of their mortgages, thanks for that too. I hope it *has* stayed the same, thats what you're checking, is that right?

Bumping up, hope someone can give you more feedback.

Yah you will pay the outstanding balance plus a month or so interest penalty.

Basically wanted to know what happens in the future. Will my contract conditions still be honoured by any new owner?

kingkano

evab wrote: »

You would need to apply to get the overpayments back and then they would do their usual checks. It's not as straight forward as just asking for it, there should be a bit on the bottom of your mortgage statement explaining what would be available.

Ev

I didnt realise thats how it worked actually. I might have to ring them for a chat. This is from their site :

Mortgage Underpayments/borrow back

You can borrow back any overpayments whenever you like, either by underpaying or stopping altogether until the overpaid amount’s used up (subject to conditions).
If you’ve made overpayments of £500 or more, you’ll be able to ask us to borrow back some or all of the overpaid amount, provided the amount is for at least £500. This money will be sent direct to your bank account.

So I guess what you say could be possible indeed..... might leave my cash in savings account if thats the case!

evab_2

Maybe have some emergency savings anyway then start on over payments, at least you could access the cash more quickly.

ppolly

We have the same mortgage with Northern Rock and have recently put most of our savings into overpaying. Our mortgage is now quite small, but we still look at the overpaid money as ours if we need it at some future date - perhaps to move house or buy a new car. We were rather tight for money just before Christmas and asked for a mortgate holiday for a month rather than getting any of the money back - they had no problem with this at all. But there is no problem with getting the overpaid money back if you need it. I checked quite throughly before I put it in. They told me it could be treated just like money in a savings account. Hope this helps

donstermonster

evab wrote: »

You would need to apply to get the overpayments back and then they would do their usual checks. It's not as straight forward as just asking for it, there should be a bit on the bottom of your mortgage statement explaining what would be available.

Ev

Hiya
Actually they do not bother checking as they do not need to , NR automatically allow you to borrow back any overpayments and will tell you how much you have available, a quick phone call releases the payment into your bank no checks required

I have had this type of mortgage with NR for yearsand it is great - also overpayments- definitely make them if you can afford it:j

Prudent

I had one of those mortgages too and loved it. I have now paid it off, but the same thought had crossed my mind. I guess they will give you the money as it means more interest for them.