Nationwide Mortgage

kazd

I think you will find that if you make an overpayent of £500 + they will then recalculate your monthly payment or it was with our mortgage, we had the flexibility to repay upto 10% of the capital without incurring redemption fees. Anything under that figure made not difference to your monthly payments just meant that your mortgage would finish earlier.

Tiddler_2

You mention that your previous overpayments didnot change your monthly payments this is because the amount of change would have been so small, it wasn't financially beneficial for Nationwide to change them - £100 would probably make 50p difference to your monthly payment. You would have still benefited from paying less interest though as your balance would have been lower.

The fact that you are in a fixed rate deal, does not stop you changing to an interest only mortgage or taking payment holidays (however, nationwide would want details of the plan you wish to use to pay off the mortgage if you were to change to interest only as they do not offer interest only mortgages with no repayment vehicle - unless the change is a temporary one due to financial problems)

Taken from the Nationwide's website:

Overpayment

You can pay off more than your required monthly payment – 'overpay' – and benefit in a number of ways:

• save interest straight away - any money you overpay is deducted from your balance the next working day
• pay your mortgage off earlier (if you have a repayment mortgage). For example, if you overpay by £75 a month on an £80,000 repayment mortgage at our Base Mortgage Rate, you could save over £20,000 and pay off your mortgage six years early
• borrow back the money that you have overpaid at any time
• reduce your monthly payments (underpayments) in the future

Our fully flexible mortgage – the Base Mortgage Rate, has unlimited flexibility so that you can overpay by as much as you like, when you like.
Our fixed rate and tracker mortgages have limited flexibility. You can overpay by £500 per month without charge. If you overpay by more than this there will be an early repayment charge payable on the entire overpayment amount.

Payment holidays

Time off from paying your mortgage
There may be times in the future when you want to take a break from paying your mortgage. Whether you're taking a break from regular employment for a while or starting a family, you can apply to take a payment holiday of between 3 and 12 months.
Certain conditions apply and you must have held a Nationwide mortgage for 1 year or more. Your mortgage must be less than 80% of the value of your home at the end of your payment holiday.
Once your request has been granted, you'll receive a letter confirming the dates of your payment holiday.