How overpaying affects your mortgage

Overpaying on your mortgage means you can save money on the total amount of interest you pay and potentially clear your mortgage balance quicker.

Things to consider before making an overpayment

Some of our mortgages have limits, known as an allowance, on how much you can overpay. If you go over this allowance, you may have to pay an Early Repayment Charge (ERC).

If you’re making overpayments following a payment break, these will impact your overpayment allowance. We will refund any Early Repayment Charges (ERCs) you get for making up missed payments.

Find out what your overpayment allowance is using the following table. You can also refer to your latest mortgage offer.

Mortgage overpayment allowance table

Table showing overpayment allowance limits for our mortgages
Nationwide mortgage product type and reservation date Overpayment allowance

All mortgage products reserved on or after 29 May 2013

10% per annum of the original loan amount

All tracker mortgages reserved on or after 2 May 2014


All mortgage products reserved between 1 Feb 2001 and 28 May 2013

£500 a month

All Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR) mortgages


There may be some instances where you may not have the overpayment feature on your mortgage. Check your latest mortgage offer to confirm.

Overpayment reserves

All overpayments you make go into an overpayment reserve. The reserve is used to reduce the interest you pay on your mortgage balance.

How overpayments will affect your mortgage

We calculate the interest on your mortgage daily so all overpayments will reduce the interest you pay the following day.

For overpayments of less than £500

We'll reduce your minimum monthly payments at the next natural recalculation point, such as an interest rate change or product expiry.

For single overpayments of £500 or more

We'll automatically reduce your minimum monthly payments the following month.

You can change or cancel the way your overpayments affect your mortgage. We call this changing your overpayment preference.

You are in control of your overpayment preferences – you can tell us how you want your overpayment money to be used to best suit your individual mortgage needs. For example, reduce monthly payments, reduce term (excluding interest only) or keep both the payments and term the same.


If the repayment method on your mortgage account is part interest and part repayment, any overpayment will be automatically applied to the capital repayment part of your mortgage.

If you want your overpayment to be applied to the interest only part, you will need to request this every time you make an overpayment by calling us on 03457 30 20 11 (Monday to Friday, 8am to 6pm, Saturday 9am to 12.30pm. Closed Sundays and bank holidays).

Mortgage overpayment calculator

Find out how your overpayments will affect your mortgage.

How to set up a regular overpayment or amend an overpayment preference

You’ll need your mortgage account number. You can find this on your annual mortgage statement, in the Internet Bank or in our Banking app.

Making a one-off overpayment

You can make a one-off payment using the Internet Bank, Nationwide account, different bank account, cheque or cash.

Payments from a Nationwide account

If you're registered, you can visit the Internet Bank.

Payments from another bank or building society

You can pay off a lump sum or make multiple payments online from another bank or building society. Use the following details:

Sort code: 070094
Account number: 44444445
Reference: Your mortgage account number

Payments by cheque or cash

Cheques must be made payable to Nationwide, followed by your name.

For example: Nationwide - Alex Williams

Remember to:

  • write your mortgage account number on the back of the cheque, and
  • include a covering letter, letting us know that you want to repay the mortgage in full.

Send to:

Nationwide Building Society
Mortgage Servicing
Kings Park Road
Moulton Park

You can also overpay by cash at your local branch.