A mortgage is often the single largest financial commitment in a person's life. For Nationwide mortgage holders, understanding the various payment methods, managing your account, and knowing your options for overpayments or financial difficulties is crucial for a smooth and stress-free homeownership journey. This comprehensive guide will walk you through everything you need to know about paying your Nationwide mortgage, step-by-step.
The Ultimate Guide to Paying Your Nationwide Mortgage
Ready to take control of your mortgage payments? Let's dive in!
Step 1: Understanding Your Nationwide Mortgage Account
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Before you can effectively manage your payments, it's essential to understand the basics of your mortgage. Do you know your mortgage account number? What's your current monthly payment? When is your payment due?
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1.1 Accessing Your Mortgage Details:
- Nationwide Internet Bank: If you're already registered, simply log in to your Nationwide Internet Bank. From there, you can select your mortgage account and navigate to "Related services" or "Manage your mortgage" to view your details. You can see past statements (up to 2 years), interest rate history, and total overpayments made.
- Nationwide Banking App: The mobile app provides a convenient way to access your mortgage information on the go. Log in, select your mortgage account, and then "Manage your mortgage."
- Annual Mortgage Statement: Nationwide sends out annual mortgage statements. This document contains vital information, including your mortgage account number, current balance, interest rate, and any applicable Early Repayment Charges (ERCs). Keep this safe!
- Mortgage Manager: This online tool, accessible through the Internet Bank or Banking App, is your central hub for mortgage management. You can view account details, check your balance, and even get a redemption figure if you're considering paying off your mortgage in full.
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1.2 Key Information to Note:
- Mortgage Account Number: This unique identifier is essential for all payments and inquiries.
- Monthly Payment Amount: Your regular payment amount.
- Payment Due Date: While your payment is officially due on the first of each month, Nationwide allows you to choose a payment date between the 1st and 28th.
- Repayment Type: Is your mortgage a Capital and Interest (repayment) mortgage, Interest Only, or a combination (part and part)? This affects how your payments are applied.
- Interest Rate: Knowing your current interest rate is key to understanding how much you're paying.
- Early Repayment Charges (ERCs): If you're on a fixed or tracker deal, there might be charges for overpaying beyond a certain allowance or for redeeming your mortgage early. Always check this before making significant overpayments or considering a full repayment.
Step 2: Setting Up Your Regular Mortgage Payments
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For most Nationwide mortgage holders, payments are made automatically via Direct Debit. This is generally the easiest and most reliable method.
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2.1 Direct Debit (Recommended):
- Automatic Setup: When you initially set up your Nationwide mortgage, a Direct Debit is typically established for your monthly payments. This means the agreed-upon amount is automatically debited from your nominated bank account on your chosen payment date.
- Changing Your Direct Debit:
- Date Changes: If you want to change your Direct Debit payment date (between the 1st and 28th of the month), you can usually do this through the Nationwide Internet Bank or Banking App, or by contacting them directly. Be aware that it can take at least two weeks for changes to take effect, so your payment might remain the same for the current month.
- Bank Account Changes: Similarly, if you wish to change the bank account your Direct Debit is taken from, you can use the online forms available on the Nationwide website or contact customer service. This also typically takes around two weeks to process.
- Important Note: Do NOT cancel your Direct Debit yourself if you're paying off your mortgage in full. Nationwide will cancel it automatically once the account is closed. If you're simply changing accounts, set up the new one first and ensure it's active before cancelling the old one, to avoid missed payments.
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2.2 Standing Order (Alternative):
- While Direct Debits are standard, you can also pay your Nationwide mortgage via a standing order. This is a regular, fixed payment you set up directly with your bank to be sent to Nationwide.
- Setting Up a Standing Order: You can usually do this through your own bank's online banking, app, or in branch. You'll need Nationwide's sort code and account number (often 07-00-94 and 44444445 for mortgage payments), and your mortgage account number as the payment reference.
- Key Difference: Unlike a Direct Debit, a standing order needs to be manually cancelled by you once your mortgage is paid off or if you change your payment method.
Step 3: Making Additional Payments (Overpayments)
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Making overpayments can significantly reduce the total interest you pay and shorten the term of your mortgage. Nationwide offers various ways to do this.
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3.1 Understanding Overpayment Allowances and ERCs:
- Most Nationwide mortgages have an annual overpayment allowance, typically a percentage of your outstanding balance (e.g., 10%). If you exceed this allowance, you may incur an Early Repayment Charge (ERC).
- Always check your mortgage offer or Mortgage Manager to confirm your specific overpayment allowance before making large lump sum payments.
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3.2 Methods for Overpayments:
- Online via Nationwide Internet Bank/Banking App (for Nationwide Current Account Customers):
- Log in to your Internet Bank or Banking App.
- Select the option to "Pay or move money" or "Make a single payment."
- Choose to pay "One of your own Nationwide accounts."
- Select your Nationwide mortgage account.
- Enter the amount you wish to overpay.
- Confirm the details.
- Online via Another Bank/Building Society (Faster Payment):
- Log in to your external bank's online banking or app.
- Set up a new payee (if you haven't paid Nationwide before).
- Nationwide Sort Code: 07-00-94
- Nationwide Account Number: 44444445
- Payment Reference: Crucially, enter your full Nationwide mortgage account number here.
- Choose "personal account" when asked for the account type.
- Enter your full first and last name. For joint accounts, use one account holder's full name.
- Enter the overpayment amount.
- Confirm the payment.
- By Cheque:
- Make the cheque payable to "Nationwide - [Your Name]" (e.g., "Nationwide - Jane Doe").
- Write your mortgage account number clearly on the back of the cheque.
- Include a covering letter stating that you wish to overpay your mortgage.
- Send it to: Nationwide Building Society Mortgage Servicing Kings Park Road Moulton Park Northampton NN3 6NW
- In Branch (Cash or Cheque):
- Visit your local Nationwide branch.
- You can make cash or cheque overpayments.
- Remember to bring your mortgage account number and potentially photo ID.
- Online via Nationwide Internet Bank/Banking App (for Nationwide Current Account Customers):
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3.3 Overpayment Preferences:
- For single overpayments of £500 or more, Nationwide may automatically reduce your minimum monthly payments the following month. However, you are in control of how your overpayments affect your mortgage.
- You can change or cancel your overpayment preference to:
- Reduce your monthly payments.
- Reduce the mortgage term (pay off faster).
- Keep both the payments and term the same (build up an overpayment reserve).
- Contact Nationwide or use Mortgage Manager to manage these preferences.
Step 4: Paying Off Your Mortgage in Full (Redemption)
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The day you pay off your mortgage in full is a truly momentous occasion! There are specific steps to ensure a smooth and correct final payment.
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4.1 Obtaining a Redemption Figure:
- Your redemption figure is the total amount required to completely pay off your mortgage on a specific date. This includes your outstanding balance plus any applicable charges (like ERCs) or accrued interest.
- You can get a redemption figure for any date within the next 3 months using Mortgage Manager online.
- Alternatively, you can call Nationwide to request a redemption statement.
- Critical: The redemption figure is only valid for the date stated on the statement. If your payment is received after this date, you could be charged additional interest, leading to a shortfall.
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4.2 Making the Final Payment:
- Online (Nationwide Current Account Customers): If you have a Nationwide current account, you can transfer the redemption figure directly via an internal transfer in the Internet Bank.
- Online (From Other Banks/Building Societies): Use the Faster Payments service from your external bank, following the same steps as a one-off overpayment (Sort Code: 07-00-94, Account Number: 44444445, Reference: Your mortgage account number).
- By Cheque: Send a cheque, clearly writing your mortgage account number on the back and including a covering letter stating it's for full repayment.
- At a Nationwide Branch: You can pay by cash or cheque in branch.
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4.3 After Payment:
- Direct Debits: Do not cancel your Direct Debit yourself. Nationwide will cancel it after your account is closed.
- Standing Orders: Remember to cancel any standing orders you had set up once your mortgage is paid off.
- Overpayments: Any overpayments that result in a credit balance will be refunded within 10 working days.
- Insurance Policies: Review any insurance policies related to your mortgage (e.g., mortgage protection insurance) to see if they are still needed or if changes are required.
Step 5: Seeking Help with Mortgage Payments
Life happens, and sometimes you might face difficulties making your mortgage payments. Nationwide is committed to helping its members in challenging times. Don't panic and don't ignore the problem.
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5.1 Nationwide's Home Support Hub:
- Nationwide has a dedicated "Home Support Hub" on its website with information and options if you're struggling financially.
- Speaking to them will NOT affect your credit rating or appear on your credit file. This is crucial for early intervention.
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5.2 Options if You're Struggling:
- Switching Your Mortgage Deal: If you're up to date, switching to a new deal (if eligible) might reduce your monthly payments.
- Extending Your Mortgage Term: Increasing the length of your mortgage term will lower your monthly payments, though you'll pay more interest overall. You can often change back to your original term within 6 months without an affordability check.
- Temporary Interest-Only Payments: For a period (e.g., 6 months), you might be able to pay only the interest on your mortgage. Be aware that your balance won't reduce during this time, and subsequent payments will be higher to catch up.
- Mortgage Payment Holiday: Depending on your mortgage product, you might be eligible to stop or reduce your monthly payments for 1 to 12 months. Interest will still accrue during this period, and your payments will be recalculated afterwards.
- Underpayments (if you have an overpayment reserve): If you've previously overpaid, you might have an "overpayment reserve" that you can use to cover underpayments.
- Stop or Reduce Overpayments: If you are currently making overpayments, you can stop or reduce them to free up some cash.
- Contacting Nationwide: The best first step is always to contact Nationwide's mortgage advisors directly. They can discuss your specific situation and explore suitable options. Their contact details are typically on their website.
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| How To Pay Nationwide Mortgage |
Frequently Asked Questions (FAQs)
Here are 10 common questions about Nationwide mortgage payments, with quick answers:
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How to find my Nationwide mortgage account number? You can find your mortgage account number on your annual mortgage statement, by logging into your Nationwide Internet Bank or Banking App, or by contacting Nationwide directly.
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How to change my Nationwide mortgage Direct Debit date? You can change your Direct Debit date (between the 1st and 28th of the month) via the Nationwide Internet Bank, Banking App, or by contacting Nationwide customer service. Allow at least two weeks for the change to take effect.
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How to make an extra payment on my Nationwide mortgage? You can make an extra payment (overpayment) online via the Nationwide Internet Bank/App, Faster Payments from another bank, by cheque, or in a Nationwide branch. Remember to include your mortgage account number as the reference.
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How to check my Nationwide mortgage overpayment allowance? Your overpayment allowance (the amount you can overpay without incurring Early Repayment Charges) can be found in your original mortgage offer or by logging into Mortgage Manager on the Nationwide website or app.
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How to get a Nationwide mortgage redemption figure? You can obtain a redemption figure (the amount needed to pay off your mortgage in full) for a future date (up to 3 months) via Mortgage Manager, or by calling Nationwide.
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How to set up a standing order for my Nationwide mortgage? You set up a standing order through your own bank's online banking, app, or in branch, using Nationwide's sort code (07-00-94), account number (44444445), and your mortgage account number as the reference.
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How to cancel my Nationwide mortgage Direct Debit? If you're paying off your mortgage in full, Nationwide will cancel your Direct Debit automatically. If you're switching banks, set up the new Direct Debit first and ensure it's active before considering cancelling the old one. If you have a standing order, you must cancel it manually.
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How to get help if I'm struggling with my Nationwide mortgage payments? Contact Nationwide's mortgage advisors as soon as possible. They have a "Home Support Hub" and can discuss options like term extensions, temporary interest-only payments, or payment holidays. Speaking to them about difficulties will not affect your credit rating.
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How to view my past Nationwide mortgage statements? You can view past mortgage statements (up to 2 years) by logging into your Nationwide Internet Bank.
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How to change how my overpayments affect my Nationwide mortgage? You can manage your overpayment preferences (e.g., reduce monthly payments, reduce term) through Mortgage Manager or by contacting Nationwide directly.
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