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?

overlykeensaver

not sure if they give it back so best to speak to N-wide before you overpay.
I do know that the max you can overpay is £500 a month.

macca64

My understanding is that you can borrow back your overpayments. However it is best to phone them and check just to be 100% certain.

pollyanna24

Thanks for that. I will double check before I start ploughing our savings into it.

I'm fairly sure they let you take it back if needed. Our last mortgage statement said we had an overpayment reserve of what we overpaid that year.

elantan

i have done this several times (had to take the money back that is) i got the money within the week found it handy ...maybe a bit too handy if truth be told ...i wouldve been approx 10,000 closer to the end of my mortgage if i hadnt lifted it

dinkylou

Ooh I ve got one of these as well and was told that I can do that too so would be interested to know what you find out.

clarew

clearly stated on my mortgage statement this year what payments had been made and what were overpayments, so you can tell what you can "borrow back". So far not needed to every do it, but its interesting to hear that it seemed an easy process when elantan needed to do it.

20000RPM

Just to add, I think that their special deals (trackers, fixed rate) have a maximum overpayment of £500, but their standard variable rate mortgage - which is very expensive - has no limit on overpayments.

So if you find yourself on that mortgage after a deal's ended but haven't got round to signing up for a new one, you could use that opportunity to make a large overpayment.

JonWB

Two Options:

1) £500 overpayments monthly, which are refundable (so can effectively be used as savings - takes a week to get them back, have to write to customer services).
2) Reducing the Term on your mortgage. Only downside is this doesn't allow you to get these 'overpayments' back.

Nationwide is VERY generous on allowing the term of the mortgage to be varied without any fees. You can go from 25 -> 10 years and your repayments will increase substantially. You can do this for a year if you get a windfall (e.g. inheritence) and wish to pay of a chunk of your mortgage penalty free. I have done this with no problems changing the term back afterwards.

JonWB