Overview

Frequently asked questions

Early Repayment Charges – FAQs

If you’re on our Base Mortgage Rate (BMR), Standard Mortgage Rate (SMR) or you have a Tracker product that was reserved on or after 2 May 2014, you will not be charged an ERC.

If you have a fixed or tracker mortgage and it was reserved before 29 May 2013, you can make overpayments of up to £500 per month without being charged an ERC. Any overpayments of more than £500 per month will be charged an ERC on the whole amount.

If you have a fixed or tracker mortgage and it was reserved on or after 29 May 2013 you’re allowed to make overpayments of up to 10% per annum of your original loan amount, not the reducing balance. Any overpayments exceeding the 10% allowance will be charged an ERC on the amount above the allowance, not the total overpayment. The year begins on the anniversary your mortgage started. (If you have a Tracker product that was reserved on or after 2 May 2014, you will not be charged an ERC.)

You’ll find details of any ERC payable in your original mortgage offer. If you can’t find your original mortgage offer, your annual mortgage statement will show any applicable ERC at the date of the statement. If you’re still unsure of your ERC amount, please call us on 0800 30 20 11, send us a secure message using the Internet Bank, or visit us in branch.

If you’re moving your mortgage to another lender or repaying in full and there’s more than 10 years remaining on your mortgage a redemption fee of £65 will be applied. See our Tariff of Charges for a full list of our charges and conditions.

We’ll always let you know if you've been charged an ERC. If an ERC has been incurred as a result of making an overpayment, we’ll send you a letter to let you know.

If you've been charged an ERC for making an overpayment it will be added to your loan. If the charge is added to your loan you’ll be charged interest on it. If you’d prefer to pay it straight away  you can either visit us in branch  or send us a cheque to: 

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

In all other instances (e.g. switching) you'll need to pay the charge upfront, it can't be added to your mortgage balance.