Overpayment to end mortgage - N'Wide

Yorkie1

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).

BridgetTheCat

If you ask for a redemption figure via the Nationwide app it will break down the costs and applicable fees for you. You can only do it 3 months in advance so you’ll need to wait until 1st November to get your 1st Feb figure. 

I’m in a similar position but for me the ERC will still be less than the interest so it’s worth paying.

Yorkie1

Thanks BTC - will give it a go some time next month to find out.

Chemistry777

We are in the same position with Nationwide.  We took a 7 year mortgage with a fix for 5 years.  We have made the max overpayments since the start and will pay of the mortgage in year 4 (so still in the fix period).  
We contacted Nationwide and they said that ERC would not apply in this case.

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81709470#Comment_81709470

Just an update on this; the mortgage year restarted this month.

When I tried the mortgage manager tool in Nov / Dec, inputting a Feb date for the repayment, it was showing the ERC would be charged, even though the repayment date was into the new mortgage year.

However, I've just done it again, and it is now showing as no ERC.

So, it seems as though the future planning of the tool can't quite handle the scenario where the balance will be below the 10% repayment limit in a future new mortgage repayment year, but once that year has started, it's fine.

Yorkie1

A couple of days ago, I got a final redemption statement through the App for today's balance. I've just logged in again and double checked the amount, following the instructions on the N'Wide website.

And I have now made a Faster payment from my bank account to the mortgage account in that amount, so I think I have just paid off my mortgage, 8 years and 1 month early 😁

(Though the paperwork might take a couple of weeks to come through).

Thanks to you all for your guidance earlier in this thread.

ACG

https://forums.moneysavingexpert.com/discussion/comment/82170548#Comment_82170548

Congratulations

jimjames

(Though the paperwork might take a couple of weeks to come through).

Just check that it does! NW seem to have a problem with their redemption process and clearing charges on mortgage deeds. We didn't receive a final confirmation statement although we did get letter about the last payment being made. Roll on 2 years and needed to check land registry, lo and behold the mortgage charge on our house was still showing. I believe they also have the original deeds for the house which are over 100 years old so have raised a case with them to sort.

Yorkie1

Thanks for the tip!

I have property alerts set up so I should receive a notification when they remove the charge. I'm going to diarise to check in about 6 months' time if nothing before then.

The mortgage has disappeared from my NW App so that tends to suggest that the closure is under way.

Yorkie1

Just to update timelines for anyone who reads this thread in future:

16 October paid off the redemption statement. After a couple of hours, the App showed a £0 balance. Then within 24 hours or so, the mortgage had disappeared from the App completely.

21 October NW wrote to me to confirm that the mortgage had been paid off. Indicated that they would automatically remove the charge from the Land Registry within the next 2 weeks. (Letter arrived 27 October)

3 November (today) - property Activity alert email received from Land Registry:

Application lodged by NATIONWIDE BUILDING SOCIETY

On: 03.Nov.2026 At: 09:19:51

Customer reference: AUTO APPN(DIS)

Although I can't find a list of reference acronyms on the LR website, this suggests all is going to plan.