Nationwide customers – Welcome to Sprive!
This week, we’re invited excited to announce that we added Nationwide Building Society to the list of lenders we support with Sprive. This now brings the list of lenders to 11 and with Nationwide being one of the largest mortgage lenders in the UK, we can now help approximately 8 million homeowners on their journey towards living a mortgage-free life.
With hundreds of Nationwide customers joining Sprive, we thought it would be useful to explain some of the nuances around making overpayments with this lender.
How do overpayments for Nationwide customers work?
Before you start using Sprive, your lender needs to know that you want your overpayments to have the effect of paying off your mortgage faster, whilst keeping your monthly payments the same. Failure to do so can result in your fixed monthly mortgage payments reducing each month, which results in you saving less interest and not paying off your mortgage any faster.
Not to worry, we help guide you through this process within the app. We go as far as telling you what number to call and what to say, to avoid confusion when calling the lender's mortgage team.
£500 payment limit
Unlike most lenders, for Nationwide, the overpayment amount determines the effect it has on your mortgage. For overpayments of less than £500, the impact is not immediately reflected on your mortgage.
To help you maximise the benefit from your overpayments, we will help you set aside money each month until you’ve saved at least £500. Only once you’ve saved a minimum of £500, can you make payments to your lender by pressing the ‘Pay to Lender’ button.
Some Nationwides mortgages have limits, known as an allowance, on how much you can overpay. If you go over this allowance, you may have to pay an Early Repayment Charge (ERC).
You can find out your overpayment allowance by visiting the Nationwide website here. You can also refer to your latest mortgage offer.
Within the Sprive app, you can set an overpayment limit, to help you track how much of your allowance you have utilised.