Nationwide overpayment charges

lydriver

hi, need a bit of clarification here....

looking at their products, it states...
Early repayment charge applies if overpayments are made that exceed 10% per year of the initial loan amount or if you exit your deal early

so if I was borrowing 70k then I could overpay up to 7k per year. ? and that would stay the same each year regardless of the remaining amount owed? which would have the same effect as having put a larger deposit down initially? (assuming LTV bracket was the same and same interest rates/products were available)

it also says

Start End Basis of Charge 01/06/2016 31/05/2017 2.00 % of the amount repaid 01/06/2017 31/05/2018 1.00 % of the amount repaid
The early repayment charges will apply if you exceed your overpayment allowance, transfer to another product or repay all or part of your loan.

so if I somehow managed to have more than 7k to repay in a year then the charge would be 2% of the amount I overpay or 2% of the amount already paid off??

as i say unlikely I will be able to overpay that much but just want to understand this fully

pete-20-11

I thought it was 10% of the balance at 1st January, but seems to be 10% of the original loan amount.

As for the second question, the ERC appears only to be on overpayments beyond the 10% allowance

http://www.nationwide.co.uk/support/support-articles/manage-your-account/mortgage-early-repayment/early-repayment-faqs#xtab:how-much-can-i-overpay

Thrugelmir

lydriver wrote: »

so if I somehow managed to have more than 7k to repay in a year then the charge would be 2% of the amount I overpay or 2% of the amount already paid off??

2% of the amount you overpay. In effect an early repayment charge.