Nationwide Mortgage Overpayments

pollyanna24

I have a Nationwide mortgage and would like to overpay.

Just wondered if anyone had done this and had subsequently needed to "borrow" back the overpayments.

I am planning on leaving a healthy amount in my savings account, but I would also like to see the mortgage balance going down.

But if I ever need the overpayment money back, how long do Nationwide usually take to give it back and is it as easy a process as they suggest?

Woby_Tide

we faxed our request for an overpayment and they transferred it back into our Flex Account the following day, maybe 2 days I forget. The overpayments had been made on the current deal and also the previous mortgage we had with them but still all classed under the same overpayment reserve

Gloster_Advise

Hi pollyanna24,

Nationwide used to only allow a £500 a month overpayment facility, anything over this will incur a partial redemption charge. Their mortgages are flexible, meaning you can withdraw the money back that has been overpaid.

double check with them first.

Regards
Si

pollyanna24

Thanks for that. The limit on £500 overpayment is still in place. It's on our mortgage papers.

One more question: the money that you "borrow" back, I take it that it just goes straight back on what you owe on the mortgage (i.e. there is no separate repayment to pay back the "borrowed" amount).

I discussed it with bf last night and he is against doing it, even though I've explained the amount we would save on mortgage interest. We currently have £15,000 savings and he wants them to stay where they are rather than overpay by £500 on our mortgage every month as I am 4 1/2 months pregnant (we don't intend to go into this money while I am off work unless something bad happens in bf's job). I can see his point, but if we can always get the money back, I just thought it would be just a good way of saving money.

pollyanna24

One other reason I thought it would be a good idea to do it is because I am pregnant, I will be looking into what benefits I am entitled to while I am off work and there is a section in "entitledto" where they ask if you have household savings of over £6,000.

Although I can appreciate that benefits are there for the needy, I would rather lower my rather large mortgage rather than lose out on any benefits just because me and bf have missed out on expensive holidays over the past few years and saved hard while everyone was spending.

strider8888

I piad a lump sum off when I was on a SVR briefly but needed to withdraw it at a later date. Nationwide need a written request which you can do at the branch and they fax it off to the relevant office. The amount gets transferred to your flex account and the balance is adjusted on your mortgage account. There wasn't an additional entry just the new value for the borrowed amount. Make sure you keep an eye out on your flex account.. They sent a cheque out that got lost even though I had a flex account. Though they did refund the interest I had been making whilst it was "lost".

Gloster_Advise

Hi polluyanna,

Yes the amount you do borrow back will increase you mortgage loan size.

Your bf may want to compare the rate you are getting on the savings and see if lowering the mortgage is more beneficial than keeping the savings.

Cheers

sanju

another thing you can do is change your term ie from 25 years to 20 which will in turn change your monthly payments then when you have less money change it back up. only thing is you cant take that money back like yo can with overpayments.

i have been playing around with my turn for last year. can be changed every month.