Mortgage overpayments

An overpayment is any additional payment you make over your usual monthly mortgage payment. Overpayments can either be a one-off lump sum or a regular overpayment made throughout the year.

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).

Find out more about Early Repayment Charges

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	Unlimited
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	Unlimited

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.

Find out more about overpayment reserves

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.

Note:

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 0345 609 25 31 (Monday to Friday, 8am to 6pm, Saturday 9am to 2pm. Closed Sundays and bank holidays).

Overpayment calculator

Find out how your overpayments will affect your mortgage.

Visit our mortgage overpayment calculator

How to set up, amend or cancel an overpayment

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

You can make one-off overpayments in the internet bank. Follow these steps:

Hover over the 'Move' tab at the top of your internet bank page.
Under the 'Make a single payment' option, select which Nationwide account you'd like to make the payment from.
You now have four options for who you would like to pay. Select the option 'One of your own Nationwide accounts' and then 'Continue'.
You'll see a list of your Nationwide accounts. Choose the mortgage account you wish to overpay into and select 'Continue'.
Enter the amount you wish to overpay, then select 'Continue'.
Check and confirm all details are correct. To finalise the one-off overpayment, select 'Confirm'.

Alternatively, you can use the 'Quick transfer' option.

Payments from another bank or building society

You can pay off a lump sum or make multiple payments online from another building society or bank.

If you're paying us for the first time, you'll need to set up a new payee. You may be asked to confirm a few details about the account before you can make the payment.

Choose personal account, when asked to select the account type.
Enter your full first name and last name. So that's 'Thomas', not 'Tom'. For joint accounts, you'll only need to use the full name of one of the account holders.
Enter the account's sort code and account number. You'll need to pay the following Nationwide account: sort code 07 00 94 and account number 44444445.
Add your payment reference. Here you'll need to enter 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 overpay your mortgage.

Send to:

Nationwide Building Society
Mortgage Servicing
Kings Park Road
Moulton Park
Northampton
NN3 6NW

You can also overpay by cash at your local branch.

Use branch finder