28 May 2013
Nationwide Building Society is increasing the amount borrowers can overpay on their mortgage.
The Society is introducing products that allow borrowers to overpay up to 10 per cent of their mortgage every year without incurring an early repayment charge. Previously, customers were able to overpay a maximum of £500 a month, irrespective of their loan size.
It means borrowers may be able to repay their mortgage earlier than previously planned. Mortgages reserved from May 29 will carry the 10 per cent a year overpayment feature. Existing products are unaffected.
Tracie Pearce, head of group mortgages at Nationwide, said: "The move to a 10 per cent a year overpayment allowance means borrowers may be able to repay their mortgage more quickly than they had previously anticipated.
"Our competitive mortgage rates mean customers are enjoying some of the lowest ever monthly mortgage payments, giving many of them the opportunity to use any extra cash to overpay on their home loan - and ultimately become mortgage-free earlier than they thought."
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Notes to editors:
Key features of the fixed and tracker mortgage product range for new applications
Overpayments (no minimum; maximum of 10 per cent a year).
Apply for a Further Advance, the additional borrowing facility.
Standard Mortgage Rate
Mortgage products reserved on or after 30 April 2009 revert to the Standard Mortgage Rate (SMR).
The SMR is a variable rate which may vary in accordance with Nationwide's mortgage terms and conditions.
All mortgages reserved on or before 3 March 2010 include the option to apply for a payment holiday and borrow-back facility. Any mortgages reserved after this date will no longer include these facilities.
If the borrower is currently letting their property they will be unable to switch to a new mortgage deal and their mortgage will automatically revert to the Nationwide variable rate as stated in their mortgage offer.
Early repayment charges for fixed rate mortgages
Throughout the deal period, a percentage of the outstanding loan is payable as detailed below. Overpayments of up to 10% per annum are permitted without the need to pay an early repayment charge.
Two-year fixed rate mortgage: 3%
Three-year fixed rate mortgage: 4%
Four-year fixed rate mortgage: 4%
Five-year fixed rate mortgage: 5%
A £99 non-refundable booking fee may apply.
Applications are required for all products. Further details of terms and conditions are available on request.
Mortgages are subject to underwriting criteria.
About Nationwide Building Society
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.