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Overpayment to end mortgage - N'Wide
Yorkie1
Posts: 12,255 Forumite
I have been overpaying my Nationwide Mortgage for some years and the end is now in sight. I am allowed to overpay 10% of the original loan.
Once I get into my new overpayment year (from 1 Feb 2026), my overpayment allowance will be greater than the outstanding balance.
Any Early Repayment Charge would be 4%. But the terms of the current fix's mortgage offer say "There may be a fixed £65 administration fee if you repay the mortgage and there is more than 10 years remaining on the term." and
"When we calculate the Early Repayment Charge, we deduct any overpayment allowance remaining in the year from the balance used."
There will be fewer than 10 years left, so no Admin fee.
But will there be any ERC? If, say the annual O/P limit is £12K, and the final balance is £9K?
My reading of the T&Cs is that there won't be, but grateful for others' confirmation or disagreement. (I know any ERC will be small, I'd just like to clarify it).
Once I get into my new overpayment year (from 1 Feb 2026), my overpayment allowance will be greater than the outstanding balance.
Any Early Repayment Charge would be 4%. But the terms of the current fix's mortgage offer say "There may be a fixed £65 administration fee if you repay the mortgage and there is more than 10 years remaining on the term." and
"When we calculate the Early Repayment Charge, we deduct any overpayment allowance remaining in the year from the balance used."
There will be fewer than 10 years left, so no Admin fee.
But will there be any ERC? If, say the annual O/P limit is £12K, and the final balance is £9K?
My reading of the T&Cs is that there won't be, but grateful for others' confirmation or disagreement. (I know any ERC will be small, I'd just like to clarify it).
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