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.

Set up, change or cancel a current overpayment using our online forms below. You can also set up an overpayment preference online. The preference form allows you to make sure the money you overpay is used in the best way to suit your individual needs.

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.

If you have a Lifetime Mortgage, you won’t be able to overpay online.

Please give us a call on 0800 30 20 10, we’ll then be able to arrange an appointment for you with one of our Later Life Mortgage Consultants.

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.

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.

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. However you can change your preference for this below.

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

Set up or change your overpayment preference

An overpayment preference is your chance to tell us how you want your overpayment money to be used to best suit your individual mortgage needs. E.g: reduce monthly payments / reduce term (excluding interest only) or keep both the payments and term the same.

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

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

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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

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Pay in at your local branch.

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