Nationwide Mortgage Deal coming to an end - no overpaying limit?

PenguinForever

Hello,

I have a mortgage with Nationwide. I have a main account and then a second account (when I needed to increase my borrowing to purchase a new house). Main account has £49,500 and second account has £22,000. Main account deal comes to an end at the end of February this year. The second account’s deal does not come to an end until 3 years time. 

Each time I phone Nationwide, they tell me in the last month of my deal coming to an end (in my case February) I can pay off however amount I want for my mortgage without having to pay any charges! I have managed to save enough money to pay off the full amount from my main mortgage. Therefore, in February, my plan is to pay off the full amount from my main mortgage, while leaving the balance in the second account (it’s very on a very low interest rate and if I do manage to save more, I’d get much higher interest in savings account).

My issue is, although I have been told this on the phone by more than one person, there is nothing official written anywhere (that I can find!). When I go on my mortgage manager and put in a date to pay off full mortgage ( I put February) it states I’ll have to pay an early payment charge of £1,500. I simply couldn’t afford this! 

I really want to pay off the main mortgage next month, but don’t want any hidden charges or surprises!

any advice would be greatly received 🙏

Emmia

If you don't pay off the mortgage next month, will it move to the standard variable rate in March? Could you pay it off then - the extra interest would be less than £1500 penalty I'd expect.

What happens if you put March, rather than February in the calculator?

Marmot

I switched mortgage from Nationwide last summer and Nationwide told me the same thing about the last month and no ERC.  I didn't believe them too and phoned again for reassurance and they told me that while it's not written down anywhere that is what they will do and that my phone call was recorded with them advising me that if I'd need proof later on....  I made an overpayment in the last month and didn't incur any charges.  So it looks like it is their policy, but it's not written down anywhere but they do seem to honour it.  I think I ended up in one phone call asking them to write a note on my account confirming the last month thing they'd told me.