Will this affect my mortgage?

Following the announcement by the Bank of England to decrease the base rate by 0.15%, we’ll be making the following changes to our mortgage rates.

Our Standard Mortgage Rate (SMR) will decrease from 3.74% to 3.59%.

Our Base Rate Mortgages (BMR) will decrease from 2.25% to 2.10%.

You’ll have a BMR if you have a mortgage reserved through:

  • Nationwide on or before 29 April 2009
  • Derbyshire Building Society on or before 30 May 2009, or
  • Cheshire Building Society on or before 14 June 2009.

Most tracker mortgage rates will decrease in line with our members’ mortgage offers. However, some have already reached the minimum interest rate in their offer, and will not see a decrease.

When will my interest rate decrease, and what will my new monthly payment be?

The changes to tracker rate and BMR mortgages will apply from 15 April 2020. Payments will change from 1 May 2020.

The changes for SMR mortgages will apply from 15 April 2020. Payments will change from 1 May 2020.

If you’re going to be affected, we’ll write to you in April, letting you know your new rate and payment amount.

Our payment change calculator can help you work out how much your payments are likely to be.

Payment change calculator

I am currently completing my new mortgage with Nationwide. Will this affect me?

If you've chosen a tracker or variable rate mortgage, your rate may change as a result. We'll write to you within 10 days of your mortgage completing to confirm your new rate and payment amount.

All Key Fact Illustration and offer documents for tracker mortgages will reflect the new rates from 1 April 2020.

Why haven’t the rates on all mortgages changed?

If you have a fixed rate mortgage, your rate won’t change until the end of your product term. We’ll write to you when this happens to confirm the rate you’ll be moving on to and your options.

My fixed rate deal ends this month. Will I get a letter?

Yes – we’ll write to you to confirm your new monthly payment at least 5 working days before the end of the month.

I have a tracker mortgage with a floor. Will my rate change?

Most trackers will decrease in line with your contract.

However, there are some tracker mortgages where the base rate will have fallen below the minimum level set out in our offer. This is also called a tracker floor.

These mortgages will stay the same, and your rate will not go below the level set out in your offer.

If your mortgage was reserved between 1 December 2004 and 16 February 2009, you should check your offer to see if this applies to you. You can also get an idea by checking the following table.

Tracker mortgage deals with minimum rate levels

Tracker mortgage deals with minimum rate levels
Date your tracker was reserved Tracker floor Will my rate decrease?
Before December 2004 No floor Yes
Between 1 December 2004 and 30 November 2008 2.75% on original offer, currently 2% as a temporary concession until further notice No
Between 1 December 2008 and 16 February 2009 1% No
Between 17 February 2009 and 11 June 2009 0.01% Yes
Since 12 June 2009 0.00% Yes

I’m worried about my mortgage payments

If you’re worried you’ll struggle with your finances when the base rate changes, we're here to help.

To find out what our dedicated teams can do to support you, visit our money worries section.

Money worries

How will this affect my overpayment?

If you can afford to, continuing to make your overpayments could be worthwhile. However, if you want to decrease the amount that you're overpaying by or want to stop making overpayments completely you can, depending on how you're making your payment.

Payments received toward your mortgage will cover your contractual monthly payment before any excess is added to your overpayment reserve.

If you're making overpayments by Direct Debit:

You can either contact us on 03457 30 20 11 (8am to 8pm, Monday to Friday. 9am to 5pm Saturday. Closed Sundays and bank holidays), visit us in branch, send us a secure message through the Internet Bank or write to us with your instructions.

If you're making overpayments by standing order from a Nationwide account:

You can change the amount in your Internet Bank or by contacting us.

If you're making overpayments by standing order from another bank or building society:

You'll need to contact them and ask them to change the amount.

How do I make a one-off lump sum overpayment?

Using online banking:

You can make multiple single payments up to a limit of £10,000, providing you have enough cleared funds available.

Over the phone:

You can also call us on 03457 30 20 11 (8am to 8pm, Monday to Friday. 9am to 5pm Saturday. Closed Sundays and bank holidays) to make an overpayment of any amount.

Paying from another bank or building society account:

You can pay online with a CHAPS payment or by using multiple quick/single payments, providing you have sufficient cleared funds available. Your bank or building society will need our sort code (07 00 94), our account number (44444445) and your mortgage account number as a reference. You can find this on your annual statement, or by logging in to the Internet Bank.

What to expect

Your new balance shows immediately and the revised interest is charged the next day. Overpayments may be subject to Early Repayment Charges. Check your mortgage offer for details.

How did you work out my new monthly payment?

If you have a repayment mortgage:

Your payment is based on your outstanding loan amount, term and interest rate. This is to make sure you’ll have paid off your balance at the end of your mortgage.

If you have an interest only mortgage:

Your monthly payment will be based on your new rate and outstanding balance. Your payments will only pay the interest due and won’t reduce the amount you owe.

If you're in arrears:

Your monthly payment doesn’t include repayment of any outstanding arrears. You’ll need to make arrangements to pay these separately if you haven’t already done so.

If you have an agreement to pay a different amount:

If you're currently paying a different amount to your contractual monthly payment this will continue. Please check the letter we will send you with your payment details carefully for more information.

Does my new monthly payment include my existing overpayment?

Depending on how you pay your mortgage, you may need to amend your payments. Refer to the information on existing overpayments elsewhere on this page.

I’ve been making regular overpayments. Will my remaining mortgage term length change?

Unless you specifically ask for your term to be changed, we'll continue to calculate payments to repay the mortgage over the agreed term. Any overpayment you've made will reduce the balance of the mortgage and the interest you're paying.

More information on overpayments can be found on our support page. If you'd like to find out more about reducing your term, call us:

8am to 8pm, Monday to Friday.
9am to 5pm Saturday.
Closed Sundays and bank holidays.

UK: 03457 30 20 11

My payment has changed. Can I make overpayments?

If you can still afford to make overpayments on your mortgage, it could be worthwhile.

If you have a mortgage where an Early Repayment Charge applies, this charge will also apply if you make an overpayment of more than the overpayment allowance. Please refer to your annual mortgage statement or your original mortgage offer to check your allowance.

More information on overpayments

Why haven’t the rates on all of my mortgage accounts changed?

If you have more than one account, your rate on other accounts may not change because you have a fixed rate on your account, which won't change until the end of your product term.

Why has my mortgage payment gone up, even though my rate has gone down?

The most common reasons for this are:

If you’ve had a period of underpayment, where you’ve used your overpayment reserve by arranging to underpay for a period of time.

If we’ve agreed to you paying less than your normal payment for a period of time due to a change in your circumstances. If you’re underpaying and you have a capital repayment mortgage, your balance won’t have reduced as quickly as it would have if you’d continued to pay your full monthly payment.

A fee or fees have been added to your account. Some reasons you may have been charged a fee are:

  • If you've missed a payment(s) or you’ve asked us to make a change to your account. If this happens we’ll write to you at the time the fee is added and it will show in your annual mortgage statement. In this scenario, your monthly payment may need to increase to pay all interest due and repay any part of your mortgage statement on a capital and repayment basis by the end of the term.
  • You’ve borrowed more money or had a retention or stage payment released. This means your mortgage balance has increased during the same month as the rate change, so the new rate has been calculated against a higher balance. The balance on your interest only mortgage has exceeded the value of your original advance.

Information for customers with interest only mortgages (TBC)

Will the interest rate change before my payment?

Changes to tracker rates, BMR or SMR will apply from 15 April 2020. Payments will change from 1 May 2020.

We will be sending out letters in April 2020 to members affected by the change in the base rate. This is to make sure all members affected have received a letter before their payment amount is changed.


Mortgages are secured on your home. You could lose your home if you do not keep up payments on your mortgage.
Mortgages are subject to underwriting and criteria. Minimum age 18, UK residents only.