What's in this section?

Types of mortgage

A look at the different options available to you.

Mortgage features

Additional features we can offer you with your mortgage.

Payment options

Information on repaying your mortgage.

Finding the right mortgage is essential when you're thinking of remortgaging. At Nationwide we offer two types of mortgages – fixed rate and tracker rate mortgages. At the most basic level, fixed rate mortgages work with a fixed interest rate, while the interest rates on our tracker rate mortgages follow the Bank of England base interest rate. Here's more on the difference between the two types:

Fixed rate and tracker rate 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 go up and down with the Bank of England base rate.
 Details Your interest rate 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 the base rate if it increases or decreases. This means your monthly mortgage payments could vary.  There's a limit though to how low your interest rate will 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 If you're in the last 3 months of your mortgage deal, you can switch without paying Early Repayment Charges (ERCs). Switching at other points in your deal period will incur ERCs. 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 reverts to Base Mortgage Rate or Standard Mortgage Rate depending on when the deal was secured. Your rate reverts to Base Mortgage Rate or Standard Mortgage Rate depending on when the deal was secured.

Mortgage features

There are many additional features we may offer when you choose your mortgage with Nationwide. Depending on your circumstances, it may be important that one or more of these features are offered as part of your deal – a lack of these features with your old mortgage may be the reason you were remortgaging in the first place!

Product fees

At Nationwide, some of our mortgages have product fees and others don't. If you choose the option with a product fee, you can pay this when you apply or you can add it to your loan. If you add this fee to your loan, you’ll be charged interest on it during the term of the loan.


You may be able to take your Nationwide mortgage deal with you when you move house.

Interest calculated daily

When you make a mortgage payment, the interest payable on your mortgage balance reduces from the very next day.


Many Nationwide mortgages are adaptable to your changing circumstances (e.g. You can make overpayments or underpayments).

Early Repayment Charges (ERCs)

At Nationwide, we do not charge ERCs in some instances. For further information on when ERCs may be applicable to your Nationwide mortgage, visit our support section.

Borrow more

If you already have a Nationwide mortgage and want to borrow more, depending on the loan purpose, you can borrow up to 90% of the value of your home.

Payment options

With capital repayment mortgages, part of your regular 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.

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.

Some lenders may offer interest-only mortgages and part and part mortgages, which are a combination of interest-only and capital repayment.

Mortgages are secured on your home. You could lose your home if you do not keep up payments on your mortgage.