Early Repayment Charges
Repaying your mortgage early or paying over your overpayment allowance are some of the most common reasons an Early Repayment Charge (ERC) may apply.
You'll find details of any ERC payable in your original mortgage offer. Your annual mortgage statement will also show any applicable ERCs up to the date it is sent.
When ERCs apply and when they do not
You may be charged an ERC when:
- You pay off your mortgage before your current deal ends. For example, by moving to another lender or by paying off a lump sum. Find out more about paying off your mortgage.
- You make an overpayment that takes you over your overpayment allowance. Find out more about overpayments.
- You switch to a new Nationwide product before your deal ends – unless you switch within the last 3 months of your current deal.
- You take your mortgage with you to a new property, called porting, and there’s a delay between the sale of your property and the purchase of your new one. However, if you can port to a new property within 180 days of that date, your ERC will be refunded in full. Find out more about porting your mortgage.
- You only take part of your existing mortgage with you to your new property – also known as a partial port. You may be charged an ERC on the part that you don't take with you.
You will not be charged an ERC if:
- You’re on our Standard Mortgage Rate (SMR), Base Mortgage Rate (BMR) or certain Tracker products. Please check your original mortgage offer, or visit our Standard and Base mortgage rate page.
- You’re taking all your existing Nationwide mortgage with you to a new property, and completing the sale of your existing property and the purchase of your new property on the same day. Find out information about porting your mortgage.
- You have the option to switch and fix on your current mortgage and are switching to a new Nationwide fixed rate product.
- You switch to a new Nationwide product, which completes within the last 3 months of your existing deal.
- Your mortgage is paid off following a critical illness claim in your name.
- Your mortgage is paid off following your death or that of your partner or spouse.
- Your endowment policy matures during the benefit period and you use this to pay off your interest only mortgage or the interest only part of your part and part mortgage.
- You're a Retirement Capital & Interest (RCI), Retirement Interest Only (RIO) or Lifetime Mortgage customer and the mortgage is repaid upon the death of the last remaining borrower.
- You’re a Lifetime Mortgage joint borrower and one of you either dies or goes into long term care and the remaining borrower decides to redeem the mortgage within 3 years of this happening.
What to expect when you are charged an ERC
If you've been charged an ERC for making an overpayment it will be added to your mortgage.
If the charge is added to your mortgage 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,
King's Park Road,
In all other instances, for example, switching from your existing Nationwide mortgage deal, you'll need to pay the charge upfront. It can't be added to your mortgage balance.