Nationwide increases ERCs

Mortgage provider Nationwide has announced that it is increasing the early repayment charges (ERCs) that are set on some of its mortgage offers.

The lender states that it charges ERCs if a loan is repaid or an overpayment of £500 or over is made within the introductory fixed-rate or tracker period of an offer, or within the first five years of a lifetime tracker deal.

Nationwide’s ERCs will now be charged at a flat rate, with the repayment fee for its two-year fixed-rate and tracker mortgages now carrying ERCs of 1.5 per cent.

The three-year fixed-rate option will have a slightly higher repayment charge of two per cent.

Longer term fixed-rate offers of five and ten years will have ERCs of three per cent, as will the Nationwide lifetime tracker for the opening five years of the deal.

Customers who currently have a tracker mortgage with Nationwide were informed that they can take advantage of the lender’s switch and fix facility, allowing them to change to a fixed-rate product without incurring an ERC.