What?
How can the end date remain fixed and the term be reduced?
If you are reducing the term by days, weeks, months, years. The end date cannot remain fixed.
It's one or the other.
You either have a fixed end date and your monthly payments go down. Or your monthly payments remain the same with each overpayment and the end date decreases as per the overpayment amount.
No, you have 3 choices. although you have to carefully read the boxes to tick on nationwides site
1) reduce monthlies so term remains the same
2) reduce term and agreed end date keeping payments the same
3) reduce term and keep original end date. keeping payments the same (they will in theory end up with the mortgage being paid off before the agreed end date if you carry on as is)
The key point is if you keep the end date the same thats your committed clear date. For example you could take a mortgage holiday using overpayment reserve if your situation changed.
You can also change your mind, I could ring them and say I have changed my mind can they recalculate my monthly payments taking my overpayment into account and keep my end date the same, this is something they will do. Or simply switch the setting to say on overpayment I want my monthlies adjusted to get to the end of my term.
As I said their default is to keep your end date the same so to reduce your monthlies. If you ask them they will however keep your monthlies the same and reduce your term to match, but they offer a third option which is effectively the same as 2 but more flexible, keep your payments the same but keep your agreed end date.
I took mine out in 2015 for 20 years, my end date was Oct 2035. The first few overpayments I made reduced my term as I selected keep your monthly payments the same so my end date moved to May 2032. They sent me letters to this effect, I went oh thats not what I wanted. I went online and realised i could select keep your term the same and keep your payments the same. Since then my end date remains at May 2032 thats now when I have in effect agreed to have paid the mortgage off by, yet even without overpayments I would clear the mortgage in the mid/late 2020s.
This may be a specific nationwide thing but its certainly a thing, I can see zero negative in keeping the end date the same (its contractual in effect) and to be in a position where the mortgage would be cleared before that date, but have the ability to renegotiate my payments should I need to lower my monthlies to the amount needed to pay off at the original term date, seems like a win win to me.