fixed rate on mortgage is up, which deal next

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  • fixed rate on mortgage is up, which deal next
  • skeetsgb
    Member

    my fixed rate is up in january with nationwide and im going to stay with these, so ive a couple of options, renew the fixed rate ( 2 or 3 yr )which is about £50 a month less than now, plus 400 quid cash back, or dont renew and stay with the base rate where at present works out at 100 quid less a month. i not sure about any cash back on that.

    is it worth sticking with the base rate, i dont really understand the in and outs of whether its going to stay at that or the goverment will increase or decrease !!
    or just fixed it again seeing as its less what im paying now, and peace of mind for the nxt couple of years its at the price i no..

    thanks in advance

    Premier Icon vinnyeh
    Subscriber

    Which Nationwide ‘base rate’ are you on – their BMR – 2.5%, or their SMR (3.99)?

    If its the first (your last deal would have started prior to April 2009) I’d stick with that- it’s tied to the Bank of England base rate which isn’t going anywhere at the moment. If it’s the latter, then Nationwide can do what they want with the rate, so I’d go and see a broker- there’s a lot of good deals around at the moment.

    Routeunknown
    Member

    I looked at this recenlty and current thinking seems to be that since the base rate cannot go any significant distance lower now would be a good time to fix for an extended period of time. The only way is up for the base rate…… but no one really knows when that will be!!

    If you do fix for a longer period you need to also make sure that they will accept overpayments and also that you can port (move house) without penalty.

    Am sure that I will get some flaming for my limited knowledge and advice but I fixed recently and feel I have a degree of peace of mind but am also aware that I am paying a little bit extra for that.

    skeetsgb
    Member

    yep its the base rate at 2.5% which will be 100 quid amonth less ! my fixed isnt up until end of jan, so my new one will start at 1st feb. i dont no how the bank of england thing works with regards how and why they put it up and when ! , my fixed rate includes the over payments and if i move house etc, i can fix that for 3 yrs at about 50 quid less than what im paying and get a cheque for 400 quid ! im considering that option

    DrP
    Member

    WHen my mortgage fix came to an end, I was ‘lucky’ enough to drop to the SVR of Base + a bit (about 2.5%).
    Had we gotten our mortgage a few months later, or switched to a new fixed which then came to an end, it would be the ‘homeowner variable rate’ (HVR) of 3.99% or more.
    Is this HVR just a load of BS the banks have made up, seeing as base is so low??

    DrP

    Premier Icon jam bo
    Subscriber

    Ive been on nationwide SMR for about 2yrs now. They keep trying to get me to sign up to a fixed rate that’ll cost me significantly more a month. I’m not going anywhere for now…

    nationwide SMR is one of the best rates around and has been since the rate crash, we were lucky to be on a N/wide fixed that ended a couple of months after the crash and we fell onto the SMR. We’ve left our direct debit the same so are overpaying. To us as non-experts, but also to our previous mortgage advisor the N/wide SMR is a no-brainer; market leading rate, no fees to enter or leave, and fee-free overpayments.

    Premier Icon Del
    Subscriber

    likewise just dropped onto the nationwide smr. overpay with your saving if you can. it’ll make a big difference and you can take the money back later on if you really need it, but will have saved interest on your mortgage in the meantime.
    according to the nationwide advisor i discussed it with this deal is costing them a LOT. 😀

    MrTall
    Member

    I’d be tempted to go for the £100pm month less offer as i don’t see the base rate doing a fat lot for the forseeable future. However, if the £400 upfront will make a difference to your current financial situation then i understand its tempting.

    I was lucky enough to take out a +.48% life time tracker with HSBC 2 months before the base rate began to fall and have been paying 0.98% for over two years now which makes a massive difference to my monthly payments and disposable income. Long may it continue…..

    grantway
    Member

    I don’t see anything going down but about to go up
    Banks are averaging Three years out of this at the moment
    so my advice would to be to get something that would cover the next
    Three to Four years.

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