mortgage overpayment charges

[Jeffery]

So my numpty husband over paid £500 on the mortgage... This would be fine if we hadnt already over paid for January... Apparently as he got paid yesterday he assumed it was a new month for some reason.

Anyway.. Apparently we get find a percentage of the overpayment but I can't find out what the percentage would be.. Its a nationwide mortgage. Any idea?

Have they sent your annual statement through yet? It says on there what the charge is for an overpayment of more than £500.01 - I think on our Nationwide mortgage it's about 5% of the total mortgage value (not overpayment value) so it could run into thousands for a penny overpayment

I'm not sure how this would hold up if you challenged it though as it's not proportional to the overpayment in any way and Nationwide wouldn't have suffered that much of a financial loss. I'd call them in the morning and explain that it was paid in error and could they move it into next month.

Just looked on their website and the early repayment charges vary according to the mortgage type so check your documentation to see what it says

You might be ok if you don't overpay anything next month. Sometimes it's calculated on per annum basis. People often pay off big chunks at a time, but keeping it below the annual total.. Give them a call.

I did this with mine - exactly the same mistake also with Nationwide. The overpayment charge was on the overpayment only, not on the whole mortgage, although I rang them in a panic because like PervyMuskrat I had read it that there would be a charge on the whole mortgage - which it wasn't. In fact when I spoke to them they were able to reverse the second overpayment for me so I didn't pay any penalty in the end.

Whether they can/will reverse might depend on whether your current account is also with them I guess.

Thanks all. He will be phoning in the morning. Yes our current account is with them... fingers crossed!