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. 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.

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