Nationwide 2%+Base rate advice
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blazemaguire
Posts: 1 Newbie
Hi,
20 years left on mortgage. Have about £161k remaining on a nationwide 2%+Base rate deal (what we reverted to after the 2 year fix ended around 2009) - This has been a great deal for a long time and we've benefit from it coming out of the 2008 crash.
In that time, house has gone from £265k Purchase to (estimated) £400k+ (we've converted garage to room, completely redecorated, new bathroom, added a large solid roof conservatory/patio etc since moving - Nationwide value estimator puts it at 390K without those improvements)
We also have 64K on a 10 year fixed mortgage (with nationwide) for the top up we we borrowed to buy the above house. Can't do a lot about the 10 year fix now, but that's at around 3.6% for 10 years which seemed a reasonable long term plan, but want to know peoples thoughts on moving off the cushty Nationwide base rate deal.
Monthly payments on that mortgage are around £780 at the moment, and looking on comparison sites I can fix for 5 years at a monthly rate of approx £630 with HSBC - a decent wad of cash in our pockets per month. This reverts to 4.6% after the fix, but obviously there's then no going back to the cushty rate... and who knows what's looming with Brexit!
What are peoples thoughts? My income/ job is pretty stable (I'm a secondary school teacher/ HOD)... literally nobody wants that job in the SE of England!). Wife works 2 days a week, also a teacher, 2 kids and another in planning... so that extra £150 a month could be very useful.
Anyway, I know it's all 'crystal ball', but just wandered what the general trend was.
Thanks so much in advance.
20 years left on mortgage. Have about £161k remaining on a nationwide 2%+Base rate deal (what we reverted to after the 2 year fix ended around 2009) - This has been a great deal for a long time and we've benefit from it coming out of the 2008 crash.
In that time, house has gone from £265k Purchase to (estimated) £400k+ (we've converted garage to room, completely redecorated, new bathroom, added a large solid roof conservatory/patio etc since moving - Nationwide value estimator puts it at 390K without those improvements)
We also have 64K on a 10 year fixed mortgage (with nationwide) for the top up we we borrowed to buy the above house. Can't do a lot about the 10 year fix now, but that's at around 3.6% for 10 years which seemed a reasonable long term plan, but want to know peoples thoughts on moving off the cushty Nationwide base rate deal.
Monthly payments on that mortgage are around £780 at the moment, and looking on comparison sites I can fix for 5 years at a monthly rate of approx £630 with HSBC - a decent wad of cash in our pockets per month. This reverts to 4.6% after the fix, but obviously there's then no going back to the cushty rate... and who knows what's looming with Brexit!
What are peoples thoughts? My income/ job is pretty stable (I'm a secondary school teacher/ HOD)... literally nobody wants that job in the SE of England!). Wife works 2 days a week, also a teacher, 2 kids and another in planning... so that extra £150 a month could be very useful.
Anyway, I know it's all 'crystal ball', but just wandered what the general trend was.
Thanks so much in advance.
0
Comments
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You need to crunch the numbers so to speak. How much will it cost to exit your current products and switch to another lender. Potentially there's early redemption charges, mortgage exit fees, legal fees, valuation fees and product fees to be considered. The expected saving can soon reduce somewhat.
What will the NW offer you in terms of a fixed product on your current variable rate mortgage. 2% above base may have been good in recent years. In time the attraction may well diminish.0 -
You won't be able to move just your BMR sub-account to HSBC (or another lender) - it will be all or nothing. So, either you take a fix from NW on the BMR part or you move your entire mortgage to another lender and soak up any ERC on your 10 year fix.0
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Crunch the numbers for 2y and 5y at a lower rate to replace the tracker and overpaying the 10y fix.
current nationwide tracker rates are better than the lifetime Base+2% 2y at base + 0.79 and 5y is base + 1.39% even with the £999 fee you are better off
crunching the move of lender needs to factor in ERC on the 10y fix.0
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