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    • DeafCassette
    • By DeafCassette 10th Apr 18, 9:38 PM
    • 16Posts
    • 4Thanks
    DeafCassette
    Overpayment Error
    • #1
    • 10th Apr 18, 9:38 PM
    Overpayment Error 10th Apr 18 at 9:38 PM
    Hi all,

    Thank you for looking, please advise if you can..

    Wife's remaining 70,000 mortgage was ending so she remortgaged with the same firm (Nationwide).

    Previously had GBP 500 per month overpayment set up monthly and ongoing - reducing the term.

    In the last month (March) she was able to overpay without penalty, so overpaid 40,000, leaving 30,000 on the mortgage.

    Arranged for 10 year new term to be set up. Payments at 320 per month - planning to overpay by 300 or so.

    Letter received today stating the term has been reduced to 4 year 8 months, with payments of GBP 678 per month....

    We are suddenly in a situation whereby instead of paying 300 and overpaying 300 on a 10 year term, we now need to pay a minimum of 678 on a 4 year term. This is not what was desired!

    Nationwide have taken the 40k and applied it as an overpayment and reduced the term.

    OK, so maybe we didn't think it through and make sure that it was applied to reduce monthly repayments, but the paperwork said 10 years at 320 per month. (The reduction in term was obviously applied afterwards).

    Everything was done online, so nobody confirmed how the payment would be applied.

    It isn't a huge issue I suppose as we can currently afford the repayments, and will clear the mortgage in a couple of years, but given that we would do that anyway - better to pay less each month...

    14 days since we signed have passed today. Feeling fairly miffed about this. Any advice greatly received.

    Thank you.
Page 1
    • Thrugelmir
    • By Thrugelmir 10th Apr 18, 10:35 PM
    • 61,350 Posts
    • 54,602 Thanks
    Thrugelmir
    • #2
    • 10th Apr 18, 10:35 PM
    • #2
    • 10th Apr 18, 10:35 PM
    Have you spoken to the NW?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • singhini
    • By singhini 10th Apr 18, 10:56 PM
    • 370 Posts
    • 219 Thanks
    singhini
    • #3
    • 10th Apr 18, 10:56 PM
    • #3
    • 10th Apr 18, 10:56 PM
    Something similar used to happen to me when I had a mortgage (the bank would write to me if the BOE rate changed or if it was time to send the annual statement). Their paperwork would show all the regular payments along with any overpayments I had made in the year and the second page of the letter used to show what my NEW monthly payments were going to be and each time it was always more than what my regular monthly payments were). I just used to ring up and ask them how they got to this figure as I had X years left(they would say the computer worked it out or some other nonsense, never did understand what they tried to explain), anyhow I just used to say can you please calculate it on the "minimum payment" and not the minimum length of time.


    Bit of a pain but they should be able to keep the length of remaining time the same and just reduce the monthly figure no problem.
    • AnotherJoe
    • By AnotherJoe 10th Apr 18, 11:22 PM
    • 11,876 Posts
    • 13,851 Thanks
    AnotherJoe
    • #4
    • 10th Apr 18, 11:22 PM
    • #4
    • 10th Apr 18, 11:22 PM
    Just call them and get it changed.
    • DeafCassette
    • By DeafCassette 11th Apr 18, 9:43 AM
    • 16 Posts
    • 4 Thanks
    DeafCassette
    • #5
    • 11th Apr 18, 9:43 AM
    • #5
    • 11th Apr 18, 9:43 AM
    Thanks for the advice everyone. We spoke to NW briefly last night. Due to call back later this eve. Will do as suggested and update later tonight.

    Thank you


    Last edited by DeafCassette; 11-04-2018 at 9:50 AM. Reason: Errir
    • DeafCassette
    • By DeafCassette 11th Apr 18, 9:38 PM
    • 16 Posts
    • 4 Thanks
    DeafCassette
    • #6
    • 11th Apr 18, 9:38 PM
    • #6
    • 11th Apr 18, 9:38 PM
    All sorted thanks guys. Nationwide have said they will recalculate the overpayments. I had visions of it going wrong.
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