Mortgage overpayments

Save money and you could take years off your mortgage

Making overpayments is a great way for you to save money over the term of your mortgage. Any payment made over and above your normal monthly mortgage payment will reduce your outstanding balance, save you interest and could reduce the term of your mortgage.

How to make overpayments

To find out more about making overpayments, please begin by selecting the type of customer you are:

Nationwide mortgages

You can make overpayments on your mortgage. Please select your repayment method and type of mortgage below:

Which type of mortgage do you have?

Fixed rate
Tracker rate
Base Mortgage Rate (BMR)/Standard Mortgage Rate (SMR)

What is your repayment method?

Repayment (capital & interest)
Interest only
Part and part

Fixed rate mortgages

	Overpayments of £500 or less	Overpayments of more than £500
Will I incur any charges?	No. You can make overpayments of £500 or less per month without incurring an Early Repayment Charge (ERC)	Yes. If you overpay by £500.01 or more in one month, you will incur an Early Repayment Charge (ERC), which is payable on the entire overpayment amount. Our ERCs have changed over time so please refer to your mortgage terms and conditions for details of the ERC that applies to your mortgage.
When will my monthly payment be reduced?	If you overpay by exactly £500, we will reduce your payment from the following month. If you overpay by less than £500, your monthly payment will be reduced at the end of your fixed rate period. Your interest is calculated daily, so your overpayment will still reduce your balance immediately and you'll start to be charged less interest, but your monthly payment won't reflect this straight away.	We will reduce your payment the following month.

Overpayments of £500 or less

Overpayments of more than £500

Will I incur any charges?

No. You can make overpayments of £500 or less per month without incurring an Early Repayment Charge (ERC)

Yes. If you overpay by £500.01 or more in one month, you will incur an Early Repayment Charge (ERC), which is payable on the entire overpayment amount. Our ERCs have changed over time so please refer to your mortgage terms and conditions for details of the ERC that applies to your mortgage.

When will my monthly payment be reduced?

If you overpay by exactly £500, we will reduce your payment from the following month.

If you overpay by less than £500, your monthly payment will be reduced at the end of your fixed rate period. Your interest is calculated daily, so your overpayment will still reduce your balance immediately and you'll start to be charged less interest, but your monthly payment won't reflect this straight away.

We will reduce your payment the following month.

Tracker rate mortgages

	Overpayments of £500 or less	Overpayments of more than £500
Will I incur any charges?	No. You can make overpayments of £500 or less per month without incurring an Early Repayment Charge (ERC)	Most of our tracker mortgages have an Early Repayment Charge (ERC) if you overpay by £500.01 or more in one month, which is payable on the entire overpayment amount. However, not all of our tracker mortgages have an ERC so please check your mortgage terms and conditions for more information.
When will my monthly payment be reduced?	If you overpay by exactly £500, we will reduce your payment from the following month. If you overpay by less than £500, your monthly payment will be reduced at the next rate change. Your interest is calculated daily, so your overpayment will still reduce your balance immediately and you'll start to be charged less interest, but your monthly payment won't reflect this straight away.	We will reduce your payment the following month.

Overpayments of £500 or less

Overpayments of more than £500

Will I incur any charges?

No. You can make overpayments of £500 or less per month without incurring an Early Repayment Charge (ERC)

Most of our tracker mortgages have an Early Repayment Charge (ERC) if you overpay by £500.01 or more in one month, which is payable on the entire overpayment amount. However, not all of our tracker mortgages have an ERC so please check your mortgage terms and conditions for more information.

When will my monthly payment be reduced?

If you overpay by exactly £500, we will reduce your payment from the following month.

If you overpay by less than £500, your monthly payment will be reduced at the next rate change. Your interest is calculated daily, so your overpayment will still reduce your balance immediately and you'll start to be charged less interest, but your monthly payment won't reflect this straight away.

We will reduce your payment the following month.

BMR/SMR mortgages

	Overpayments of £500 or less	Overpayments of more than £500
Will I incur any charges?	No, you can overpay by as much as you like, when you like.	No, you can overpay by as much as you like, when you like.
When will my monthly payment be reduced?	If you overpay by exactly £500, we will reduce your payment from the following month. If you overpay by less than £500, your monthly payment will be reduced at the next rate change. Your interest is calculated daily, so your overpayment will still reduce your balance immediately and you'll start to be charged less interest, but your monthly payment won't reflect this straight away.	We will reduce your payment the following month.

Overpayments of £500 or less

Overpayments of more than £500

Will I incur any charges?

No, you can overpay by as much as you like, when you like.

When will my monthly payment be reduced?

If you overpay by exactly £500, we will reduce your payment from the following month.

We will reduce your payment the following month.

Repayment (capital & interest)

	Overpayments of £500 or less	Overpayments of more than £500
What are my options?	If you overpay by exactly £500, your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same and reduce your term instead. If you would like to reduce your term, please let us know when you make your overpayment. If you overpay by less than £500, this will reduce the outstanding balance but your monthly payment won't reflect this straight away (see 'when will my monthly payment be reduced' above).	Your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same and reduce your term instead. If you would like to reduce your term, please let us know when you make your overpayment.

Overpayments of £500 or less

Overpayments of more than £500

What are my options?

If you overpay by exactly £500, your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same and reduce your term instead. If you would like to reduce your term, please let us know when you make your overpayment.

If you overpay by less than £500, this will reduce the outstanding balance but your monthly payment won't reflect this straight away (see 'when will my monthly payment be reduced' above).

Your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same and reduce your term instead.

If you would like to reduce your term, please let us know when you make your overpayment.

Interest only

	Overpayments of £500 or less	Overpayments of more than £500
What are my options?	If you overpay by exactly £500, your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same, which means you will pay more than the amount required each month and reduce the outstanding balance further. If you would like your payment to remain unchanged, please let us know when you make your overpayment. If you overpay by less than £500, this will reduce the outstanding balance but your monthly payment won't reflect this straight away (see 'when will my monthly payment be reduced' above).	Your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same, which means you will pay more than the amount required each month and reduce the outstanding balance further. If you would like your payment to remain unchanged, please let us know when you make your overpayment.

Overpayments of £500 or less

Overpayments of more than £500

What are my options?

If you overpay by exactly £500, your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same, which means you will pay more than the amount required each month and reduce the outstanding balance further. If you would like your payment to remain unchanged, please let us know when you make your overpayment.

If you overpay by less than £500, this will reduce the outstanding balance but your monthly payment won't reflect this straight away (see 'when will my monthly payment be reduced' above).

If you would like your payment to remain unchanged, please let us know when you make your overpayment.

Part and part

	Overpayments of £500 or less	Overpayments of more than £500
What are my options?	If you overpay by exactly £500, your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same, which means you will pay more than the amount required each month and reduce the outstanding balance further. If you would like your payment to remain unchanged, please let us know when you make your overpayment. If you overpay by less than £500, this will reduce the outstanding balance but your monthly payment won't reflect this straight away (see 'when will my monthly payment be reduced' above). Your overpayment automatically reduces the repayment part of your mortgage. If you want to reduce the interest only part, please let us know when you make your overpayment.	Your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same, which means you will pay more than the amount required each month and reduce the outstanding balance further. If you would like your payment to remain unchanged, please let us know when you make your overpayment. Your overpayment automatically reduces the repayment part of your mortgage. If you want to reduce the interest only part, please let us know when you make your overpayment.

Overpayments of £500 or less

Overpayments of more than £500

What are my options?

If you overpay by less than £500, this will reduce the outstanding balance but your monthly payment won't reflect this straight away (see 'when will my monthly payment be reduced' above).

Your overpayment automatically reduces the repayment part of your mortgage. If you want to reduce the interest only part, please let us know when you make your overpayment.

Your overpayment will automatically reduce your monthly payment. Alternatively, you can choose to keep your monthly payment the same, which means you will pay more than the amount required each month and reduce the outstanding balance further. If you would like your payment to remain unchanged, please let us know when you make your overpayment.

Your overpayment automatically reduces the repayment part of your mortgage. If you want to reduce the interest only part, please let us know when you make your overpayment.

How to overpay

You can overpay regularly each month or make one-off payments. Any money you overpay is deducted from your balance immediately and the interest on your new balance is charged the next working day.

By standing order: simply ask your bank to increase the amount you wish to pay

By cheque or cash: visit any of our branches, or post a cheque to us.

Make your cheque payable to Nationwide Building Society, followed by your name and mortgage account number and send it to:

Nationwide Building Society, Mortgage Servicing, King's Park Road, Moulton Park, Northampton NN3 6NW.

Online: If you are a FlexAccount holder, you can make overpayments online.

Call us: on 0800 030 40 49 to make a one off payment or to amend your existing Direct Debit.

Payment details

To make payments into your mortgage directly from a bank account, you will need to quote the following details:

Sort code: 070094
Account number: 44444445
Reference number: Your mortgage account number

Frequently Asked Questions about overpayments:

Can I use my overpayment(s) to underpay in the future?

Yes. When you overpay this builds up an overpayment ‘reserve’, which you can use to either reduce your monthly payments by a set amount (e.g. £50.00 per month), or stop making payments for a set period. You can use either part or all of your overpayment reserve to do this, but the maximum amount you can underpay by is the value of the overpayment reserve you have built up.

When you underpay, your monthly payment will be recalculated at the next rate change (variable rates only) or at the end of your product term, depending on which is first.

How will I know what my Early Repayment Charge (ERC) will be?

Whether or not you need to pay an ERC depends upon the type of mortgage you have and how much you want to overpay by. The information above should tell you whether an ERC will be payable on your overpayment, or whether you will need to refer to your mortgage terms and conditions.

Our ERCs have changed over time, so to find out the ERC that applies to your particular mortgage and how much you will be charged you will need to refer to your mortgage terms and conditions.

If an ERC is payable on your overpayment, this will automatically be added to the balance of your mortgage and we will send you a letter to let you know how much this will be. You can pay the ERC when you make your overpayment or when you receive notification of the ERC amount. You can pay by any of the overpayment methods shown above.

Why is my overpayment not showing on my account?

Once we have received your overpayment, it can take up to 5 days for it to show on your online account. However, the overpayment will still be applied to your account at the date the payment was received. If it has been more than 5 days since we received your overpayment and it has still not been credited to your account, please contact us on 0800 030 40 49.

Why did I receive a letter showing my overpayment as being less than the amount I overpaid by?

This may be because you made your overpayment before the direct debit for your usual monthly payment was collected. If you do this, the overpayment will take into account your regular monthly payment and debit that amount from the overpayment.

For example, your monthly direct debit for £600 is due on the 15th of the month, but you overpay by £2000 on the 10th of the month. You will receive a letter to say that we have received your overpayment of £1,400 (i.e. the £2000 overpayment minus your direct debit amount). Your direct debit will then be collected as usual on the 15th but this will count as an overpayment (as your monthly payment has already been debited).

This does not change the effect your overpayment has, but if you want to prevent this from happening then you will need to make your overpayment after your direct debit has been collected.

I thought my fixed or tracker term had expired so why have I been charged an Early Repayment Charge (ERC) on my overpayment?

Once your fixed or tracker term has expired, you move onto our Base Mortgage Rate (BMR) or Standard Mortgage Rate (SMR), both of which allow unlimited overpayments without incurring ERCs.

However, your fixed or tracker term does not expire until the end of the month, regardless of the date your mortgage began. For example, a 2 year fixed or tracker mortgage that began on the 15th of the month will expire at the end of the same month 2 years later (not on the 15th).

Therefore, you may have overpaid believing that your fixed or tracker term had expired when in fact it hadn't, causing you to incur ERCs.

Former Portman mortgage customers:

If you are a former Portman Building Society customer whose mortgage product was taken out before 28 August 2007 and your original deal term has not yet expired, you may be able to make limited overpayments. The amount you can overpay in any 12 month period, before an Early Repayment Charge (ERC) is payable, is usually restricted to a certain percentage of the loan. Please refer to your terms and conditions for details.

If you are a former Portman Building Society mortgage customer and your original deal term has expired or you have switched to a Nationwide mortgage, please reselect 'Nationwide mortgage customer' from the buttons above.

CCA regulated mortgages:

Sorry but you cannot make overpayments on your mortgage.