Nationwide lifetime tracker question

haras_nosirrah

Hi

I have 7.5 years left on a Nationwide lifetime tracker I took out last month. If I overpay the £500 a month then that would bring the mortgage down to 4 years. I know that Nationwide have a tie in of 5 years so how would it work if I pay it off quicker but within the £500 a month stipulation? Would I have an early repayment charge on the whole amount of the loan or just on the final payment?

Anyone know

figgles

What does it say on your documentation for the mortgage, ERC's are usually listed somewhere on it.

Another simple answer is overpay it to the point of it nearly being paid off and then stop until you dont incur any ERC's (unless the ERC is less than the monthly payments you would have left).

haras_nosirrah

It says that the tie in is 5 years and there are 3% ERC's but that you can overpay up to £500 a month with no ERC. Just thinking that if this £500 overpayment brings you naturally under the 5 year bracket then what happens then?

figgles

Unless someone here has the same deal, it's worth calling them. I'd not expect the first person you speak to to know the answer though.

If it did incur an ERC if you paid it off early by overpaying, then I'd do as I suggested though, simply leave it with a small amount outstanding and not worry about the few £ (or pennies) of interest each month.

haras_nosirrah

does anyone here have the same deal? Is Nationwide lifetime tracker

dimbo61

You took out the mortgage last month !
come back to us in 2/3 years after you have overpaid the mortgage by £500 a month each and every month !!! and I will find out the answer for you.

haras_nosirrah

Appreciate that have only just started the loan.

I am just conscious that while the rate is low I want to pay it off as quickly as possible before they go up. If I overpay too quickly then I don't want to be liable for the ERC on the whole amount of the loan whereas if it is just on the last £500 then am ok with that. Just want to double check if anyone else has paid this product off within 5 years.