What's in this section?

Types of mortgage

A look at the different options available to you.

Fees and charges

The fees associated with taking out a mortgage.

Repaying your mortgage

Helping you understand how to pay back your mortgage.

When you’re buying your next home, finding the right mortgage is one of the most important decisions you’ll make. We offer two types of mortgages - fixed rate and tracker rate mortgages. As a reminder, fixed rate mortgages have a fixed interest rate, while the interest rates on tracker mortgages follow the Bank of England base rate.

Fixed rate and Tracker mortgages explained

Fixed or tracker rate - the difference
  Fixed rate mortgages  Tracker rate mortgages 
 At a glance Your interest rate is fixed, so your monthly mortgage payments are also fixed.    Your monthly mortgage payments will increase and decrease with the Bank of England base rate.
 Details Your interest stays the same for an agreed period, and you pay exactly the same per month until the end of the period. If the Bank of England base rate increases or decreases, you'll still pay the same fixed rate for the deal period.  Your interest rate is set at a certain percentage above the Bank of England base rate, and it follows this rate if it increases or decreases. This means your monthly mortgage payments could vary.  There's a limit to how low your interest rate can go - if the Bank of England base rate is lowered to 0.00% or less during the tracker period, you'll pay the 0.00% plus the agreed set percentage above the base rate.
 Overpayments  possible? Yes, up to your overpayment allowance with no penalty. More about overpayments Yes, up to your overpayment allowance on some, unlimited on others. More about overpayments
 Changing  your deal Changing your mortgage before the end of your fixed term will incur an Early Repayment Charge. Switch to one of our fixed rate mortgages at any point during your deal with no Early Repayment Charge.
 When your  deal ends Your rate will move to either our Base Mortgage Rate or Standard Mortgage Rate depending on when you took out your mortgage product. Your rate will move to either our Base Mortgage Rate or Standard Mortgage Rate depending on when you took out your mortgage product.

Fees and charges

There are a number of fees and charges that may apply to your mortgage. For a full list of our possible charges (and when these apply) please see our support pages and our Tariff of Charges

Product fees

This is a charge of up to £999 that's added to some mortgages as part of the deal. You can choose to pay the amount up front, or add it to your total mortgage amount. If you add it to your mortgage, you’ll pay interest on it at the same rate as the rest of your borrowing.

Telegraph transfer fee

If you or your conveyancer request money to be sent by telegraphic transfer/ CHAPS when your mortgage completes, we charge a fee of £20.
No fee is charged for a transfer by BACS.

Conveyancer fees

You'll need a conveyancer to handle your mortgage contracts and legal documentation. If you don't already have a conveyancer in mind, you can use Nationwide's conveyancing service.

More information on mortgage fees and charges.

The only payment type we currently offer is capital repayment. This means part of your monthly payment goes into paying back the lump sum you borrowed, while the rest covers the cost of interest. As long as you keep up your monthly mortgage payments, your mortgage will be paid off in full by the end of your mortgage term. 

Other lenders may offer interest-only mortgages and part and part mortgages, which are a combination of interest-only and capital repayment. We no longer offer either of these payment types. If you have an existing interest-only mortgage with Nationwide, you may be able to take it with you to your new property. However, you won't be able to take out any additional borrowing on an interest-only basis.

How mortgage payments work:

  • Not only do you repay your mortgage over a set period of time, you also pay interest on the money you owe, which forms part of your monthly payments.
  • The higher the mortgage rate, the more you’ll pay in interest.
  • The faster you pay off your mortgage, the less interest you’ll pay.
  • If you want to pay more than your monthly mortgage amount, this is called making an overpayment. Your mortgage will come with an overpayment allowance. If you go over your overpayment allowance, you may need to pay a fee. Find out more about overpayments.
  • If you pay off your mortgage before your term ends, you might need to pay an Early Repayment Charge.