Overview

What are Early Repayment Charges?

If you repay your mortgage early or make an overpayment that's more than your overpayment allowance, an Early Repayment Charge (ERC) may be payable. 

You'll find details of any ERC payable in your original mortgage offer. If you can't find your original mortgage offer, your annual mortgage statement will show any applicable ERC at the date of the statement.

When do Early Repayment Charges apply?

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)
  • you make an overpayment that's higher than your product overpayment limit (for example by making increased regular payments, or paying off a lump sum)
  • you switch to a new Nationwide product before your deal ends (unless this switch is within the last three months of your current deal)
  • you take only part of your existing Nationwide mortgage with you to a new property (partial port)
  • you take all your existing Nationwide mortgage with you to a new property, a porting application has been accepted and an offer produced by Nationwide - but there's a delay between the sale of your existing property and the purchase of your new one (split port).
    In this case we'll refund any applicable fees on completion of your new property purchase, providing this is completed within the offer validity period.
    Please note, if you need to change the details of your application after the sale of your property, you'll need to choose a new mortgage product so any fees paid when you closed your existing account won't be refunded.

You will not be charged an ERC if:

  • you’re on our Base Mortgage Rate (BMR), Standard Mortgage Rate (SMR) or certain Tracker products (please check your original mortgage offer)
  • 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 (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 within the last three 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/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).

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