Mortgage overpayments

An overpayment is any additional payments you make over your contractual monthly mortgage payment. These overpayments can either be a one off lump sum or a regular overpayment made throughout the year.

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

Overpaying could also reduce your loan-to-value (LTV) ratio. This means as the amount of equity in your home increases, you may have access to more attractive interest rates.


Before making an overpayment

You may be charged an Early Repayment Charge (ERC) if you pay over your overpayment allowance. Find out what your overpayment allowance is using the table below or refer to your original mortgage offer.

Product type & reservation date Overpayment allowance

All Nationwide mortgage products reserved on or after 29th May 2013.

10% per annum of the original loan amount

All Nationwide tracker mortgages reserved on or after 2nd May 2014.

Unlimited

All Nationwide mortgage products reserved between 1 Feb 2001 & 28 May 2013.

£500 a month

All Nationwide 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 original mortgage offer to confirm.


How will overpayments affect my 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 per month:

We’ll reduce your minimum monthly payment at the next natural recalculation point, i.e. an interest rate change or annual recalculation.

For single overpayments of £500 or more per month:

We'll automatically reduce your minimum monthly payments the following month. You can change your preference to one of the below:


  • Reduce your monthly payments (default option)
  • Pay off your mortgage earlier by reducing the term (excluding Interest Only)
  • Keep both the payments and term the same, your payments will reduce at the next natural recalculation point

Set up or change your overpayment preference

Your mortgage account number

You can find this on your annual mortgage statement, original mortgage offer, in the Internet Bank or in our banking app

Product features

When you make an overpayment it goes into an overpayment reserve and it’s used to reduce the interest you pay on your mortgage balance. Some of our mortgage products allow you to overpay and borrow back these funds later on. Check your mortgage offer or our BMR/SMR mortgage guide to see whether you have this product feature, and if you do, you can overpay knowing you can access these funds back if you need to.


Making a regular overpayment by Direct Debit

Your mortgage account number

You can find this on your annual mortgage statement, original mortgage offer, in the Internet Bank or in our banking app

Your mortgage account number

You can find this on your annual mortgage statement, original mortgage offer, in the Internet Bank or in our banking app


Making a one-off overpayment

From your Nationwide account

  • If you're registered, visit the Internet Bank, OR
  • Call us on 0800 30 20 11

From another bank or building society

You can pay off a lump sum or make multiple quick/single payments online. To make these payments, use the following details:

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

By cheque

Make your cheque payable to Nationwide Building Society. Write your name and mortgage account number on the back.

Send it to:
Nationwide Building Society
Mortgage Servicing
King's Park Road
Moulton Park
Northampton
NN3 6NW

With cash

Pay in at your local branch.