stooze onto nationwide mortgage - little gain ?

wallet_2

i have a mortgage nationwide 5 year tracker 4.99% on £18140.

0% cc £12000 and savings of £5000 = £17k is overpaid on mortgage.
dec 04 close was £18040
jan 05 open balance is £1,140 ( 18040 - 17000 )

sep balance is £865
repay back my cc £16447
= £17312

if i had not stoozed this money my mortgage repayments would have been
£124 x 9months = £1116
minus 9 months interest @ £80 = £720
= £17744 (18140 - 1116 + 720 )
so i have made interest of £432 ( 17744 - 17312 )

but 5% account for low rate earner would have earned say £637 gross i guess £509 nett

i hope you can follow this quicker than it took me to work it through.

doesnt my return via mortgage appear dissapointing in view of fact that its a loan till 2023 ?

Joe_Bloggs

I think there are overpayment charges on the amount overpaid that exceeds £500 per month with fixed rate and tracker mortgages. . The percentage amount depend upon how long is left on the fixed/tracker deal. A five year tracker has carries a 5% overpayment penalty at the start of year 1. This falls to 1% at the start of year five and to zero after year five.
So if in one month in year one (5 year tracker) I make an overpayment of £2000. The capital on the mortgage will decrease by 500 + 1500*(1-0.05) = £1925. Thats a £75 gift to Nationwide.

Supposedly in the near future you will be able to access mortgage details online. I've tried to do this but have been fobbed of with lame excuses which lead to delays and more excuses.

J_B.

wallet_2

hey good on ya joe - blue and white signature been pecking me for ages.

but to nitty grittty - the overpayment charges were minimal as it was at end of prev deal.those fees and setup fee are in dec 04 account so can be ignored. Do people think that stooze on a mortgage should give such a poor return rather than into an isa

Joe_Bloggs

@ceeebeee
I have been promised a mortgage statement in January. I will never know what penalties or bonuses have been applied or whether to appeal against the amount etc until the facts are exposed online or by frequent regular statement. It looks like you effectively 'suspended' your mortgage rather that using your existing payments to attack the capital. You would have 'paid off' your mortgage had your repayments continued at their original level and caused a remortgage situation when you had to repay the credit card company back.

You have the option when you overpay to reduce the payments or reduce the term. My guess is you reduced the payments. When I overpay I tell them to keep the regulay payments the same given the same BOE rate.

J_B.(I could be wrong. )

PS your tracker should be 4.74% from Sept 1st due to the August BOE rate reduction of 0.25%

wallet_2

i did ensure that my repayments were as before minus £85 . this £85 was paid to the mint card as min monthly repays. this is then factored in after 9 months cos less is needed to draw down from mortgage to repay card.

ps you CAN see ongoing action on nationwide by applying as i have for net access. you do this via their web site try this https://olb2.nationet.com
they send you password in post . i think it even shows day by day interest added.

any one comments anyone on most lucrative method of saving stooze money. ps mortgage method was chosen cos it cant be seen by tax credit as notional income as would more than £300 per anum interest - oh to be poor !

Joe_Bloggs

It is great that you can see what is going with your mortgage and other accounts. I can see the Flex, Esaver and the almost useless Investdirect. My Nationwide Gold credit access has been shot for over a month, no postal statement either. I have tried to close it via telephone. I was allegedly given a different customer ID number by requesting mortgage access. I will change my tune if this access appears.
J_B.

Joe_Bloggs

@Ceeebeee
Got my mortgage access and it is pretty basic. It's better than nothing.

There is something wrong with your credit card figures.
If you has £5000 in savings and £12000 on a new the mint card that would make £17000. The minimum payment with mint is 2.25% per month. I would expect The mint balance to decrease like this* :-
£12000
1) £11730
2) £11466
3) £11208
4) £10956
5) £10709
6) £10468
7) £10232
8) £10003

So you should have only have to pay mint £10003 back. Did something get puchased on the mint card ? This would also be at 0% but it would make the final repayment higher. You indicate 11447 (you say 16477. I guess this includes the original capital).
J_B.

*Mint, at present, charge for balance made transfers in the first three months

wallet_2

joe the figures were approx but close - i had mint 4k and virgin 8k virgin repays were £5 mint were reducing approx £84 . i got advice from in here that mint didnt charge for bal trans if used their spend n save cheques. i did trans in dec no charge.
but i still bemused at low return next to savings

ethelhead

Joe_Bloggs wrote:

My Nationwide Gold credit access has been shot for over a month, no postal statement either.

Yes, very annoying. I emailed and got this response:

I confirm the problem you are experiencing viewing your credit card is due to a technical error on the internet bank. The cause of this error has been located and a fix will be released shortly.
This fix should be implemented in early August but, I am unable to guarantee this.


I notice it's up & running again now.