Nationwide lifetime tracker question

haras_nosirrah

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?

Gorgeous_George

Hi sarah

If you have a tie-in, you will pay the early repayment charge if you repay early. The clue is in the name.

GG

haras_nosirrah

I appreciate I would have an Erc. My question is though would I have a

full ERC on the 87,000 I took out or on the last £500 I overpayed?

gizmo111

The ERC is usually on the amount borrowed, or sometimes on the amount owing previous year. Check your T&C in original offer.

golfiematt

i am currently doing the same. I overpay £500 a month and im on a 10 year fixed rate, i rang up to ask what would happen if i ended up paying the mortgage off early through overpayments, they told me its a loophole and there wont be a charge because its an overpayment and not an ERC.hope this is of help

littlemrtinkle

you can also change your term free of charge if you are finding the £500 limit a pain. I have done this four times in the last six months. You just ring them up ask them for a mortgage term change form and you recieve it in the post in a week. Can take up to a month to change the term. They will also do calculations over phone to tell you what your new mortgage payment will be.