Overview

Making overpayments

If you can afford to, overpayments are a great way for you to save money over the term of your mortgage. You can decide to pay off a lump sum or pay off a bit extra each month, or do both.

Benefits of overpayments - you could:

  • Reduce your outstanding balance
  • Save interest

Why not try our overpayments calculator?

Our handy tool helps you work out how making overpayments could reduce your mortgage term and how much you pay in interest.

Things to think about before making an overpayment

Early Repayment Charge (ERC)

You may be charged an ERC for making overpayments. This depends on your mortgage – if you know what type of mortgage you have, take a look at our overpayment allowance table.

Overpayment allowance

We encourage you to check your original mortgage illustration and your offer for your specific product terms. Overpayment information including your Overpayment Allowance can be found in section 11. Below is a guide to the allowances on all of our mortgages.

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.

Our BMR/SMR mortgage guide will tell you what features are on your particular mortgage

If you've ever ported your mortgage, your overpayment allowance will be the allowance set at the start of your mortgage.

When you will see the benefits of overpayments

Although the benefits of your overpayment will immediately take effect, we visibly update your account depending on how much you pay in the following ways:


  • £500 or more, we'll recalculate your monthly payment the following month*
  • For amounts less than £500, your repayments will be recalculated throughout the year, if there' been a rate change for example. We'll inform you by letter when this happens. Recalculations will also appear on your annual mortgage statement.

*We automatically reduce your payments. But if you have a capital repayment mortgage, you can choose to keep your payments the same and reduce your mortgage term instead. You can also decide to do ‘nothing’, this means we won't recalculate your payments or term from the following month and you won't receive a letter each time you overpay. If you do this, your payments will be recalculated throughout the year, if there's been a rate change for example.

You can set up or change these preferences at any time. You can tell us via the Internet Bank or give us a call on 0800 30 20 11.

Flexibility of overpayments

Making overpayments also gives you the flexibility to use the money you build up to help you in the future.

Borrowing back overpayments

For mortgages taken before 4 March 2010, you may have the option to borrow back the money you have built up. This is known as your 'overpayment reserve', please check your original offer to see if you have this feature.

The outstanding balance on your mortgage will go up if you do this. Call us on 0800 30 20 11 to find out more.

Underpaying your mortgage

You could use the money you have built up by making overpayments (your 'overpayments reserve') to underpay your mortgage in the future.

The different ways to make overpayments

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Overpaying your mortgage from your Nationwide current account

To set up regular overpayments by Direct Debit from your Nationwide current account, either call us on 0800 30 20 11, send us a secure message, visit your local branch or write to us at:

Nationwide Building Society
 Mortgage Servicing 
King's Park Road
Moulton Park
Northampton 
NN3 6NW

You can make one-off overpayments in a number of ways:

If you have specified how long you would like to make overpayments for, when that period ends you will automatically go back to your agreed monthly payment - we'll let you know by letter. If you haven’t told us how long you’d like to overpay for, the overpayments will continue until you tell us otherwise.

    How to set up a standing order

    Overpay your mortgage from another bank or building society

    You can overpay your mortgage from another bank or building society account, just give them a call and ask them to increase your monthly payments. 

    What they'll need:

    • Sort code: 070094
    • Account number: 44444445
    • Reference: Your mortgage account number (you can find this on your annual statement)

    Making a one-off payment

    You can pay off a lump sum online with a CHAPS Payment or by using multiple quick/single payments, providing you have sufficient cleared funds available.

    What you'll need to make the payment:
    Sort code: 070094
    Account number: 44444445
    Reference: Your mortgage account number (you can find this on your annual statement)

      Whether you choose to pay off a lump sum or a bit each month, we will lower your outstanding balance immediately with the reduction in interest effective the next working day.

      Overpay from your current account

      To set-up regular overpayments by Direct Debit from your current account, either call us on 0800 30 20 11, send us a secure message, visit your local branch or write to us at:

      Nationwide Building Society
      Mortgage Servicing 
      King's Park Road
      Moulton Park
      Northampton 
      NN3 6NW

      One-off overpayments can only be made by secure message, visiting your local branch or writing to us at the address above.

      If you have specified how long you would like to make overpayments for, when that period ends you will automatically go back to your agreed monthly payment - we'll let you know by letter. If you haven’t told us how long you’d like to overpay for, the overpayments will continue until you tell us otherwise.

      Whether you choose to pay off a lump sum or a bit each month, we will lower your outstanding balance immediately with the reduction in interest effective the next working day.

      Write a cheque to overpay your mortgage

      Make your cheque payable to Nationwide Building Society, followed by your name and mortgage account number. You can find out more about how to write cheques to Nationwide on our payments and transfers pages.

      The address to send your cheque to is:

      Nationwide Building Society
      Mortgage Servicing 
      King's Park Road
      Moulton Park
      Northampton 
      NN3 6NW

      Whether you choose to pay off a lump sum or a bit each month, we will lower your outstanding balance immediately with the reduction in interest effective the next working day.

      Overpay your mortgage with cash

      If you're paying by cash, you'll need to visit us in branch. 

        Branch finder

        Whether you choose to pay off a lump sum or a bit each month, we will lower your outstanding balance immediately with the reduction in interest effective the next working day.

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