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.