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  • FIRST POST
    • Annielou
    • By Annielou 10th Oct 17, 5:44 PM
    • 72Posts
    • 5Thanks
    Annielou
    Nationwide Base Mortgage Rate (BMR) - stick or switch?
    • #1
    • 10th Oct 17, 5:44 PM
    Nationwide Base Mortgage Rate (BMR) - stick or switch? 10th Oct 17 at 5:44 PM
    Hi, I wonder if anybody could offer me any advice on whether to stay on a Nationwide BMR or, because rates will be increasing, switch to say a 5 yr fixed or 10 yr fixed? The Nationwide BMR is guaranteed to be no more than 2% above the Bank of England Base Rate, and If you choose to switch from to a new product, it isn’t possible to switch back at a later date. I am nervous to give this up, but on the other hand I am also nervous that interest rates are going to rise. Help, don't really understand it all and not sure whether to act now or wait/leave it? Any advice would be much appreciated.
Page 1
    • dimbo61
    • By dimbo61 10th Oct 17, 5:50 PM
    • 9,494 Posts
    • 5,149 Thanks
    dimbo61
    • #2
    • 10th Oct 17, 5:50 PM
    • #2
    • 10th Oct 17, 5:50 PM
    This depends and you !
    Are you overpaying the mortgage every month ?
    Is this a large mortgage?
    Do you want the security of a FIX ?
    Any plans to sell up and move home in the next 2/3/5 or 10 years ?
    Savings, Income, Kids, job and pension
    No one can say OH you should take a fix unless we know a whole lot more about you
    • Annielou
    • By Annielou 10th Oct 17, 6:00 PM
    • 72 Posts
    • 5 Thanks
    Annielou
    • #3
    • 10th Oct 17, 6:00 PM
    • #3
    • 10th Oct 17, 6:00 PM
    oh righty ho, briefly then - property value £200k, outstanding mortgage £77k with 15 years left. not overpaying, not planning on selling/moving, single, no kids, got pension, work full time. Not particularly bothered about security v fix, just bemused by whether the Nationwide BMR is a gem I've accidentally stumbled upon and shouldn't let go of (it seems to be a 2% tracker in disguise?), or whether to bite the bullet and fix now. it seems that interest rates would have to rise many times before my current deal would be worse than a fixed deal, but then again I'm worried I'm missing something important that I don't get and will miss the boat entirely
    • tonycottee
    • By tonycottee 11th Oct 17, 8:18 AM
    • 1,051 Posts
    • 2,057 Thanks
    tonycottee
    • #4
    • 11th Oct 17, 8:18 AM
    • #4
    • 11th Oct 17, 8:18 AM
    What is your current interest rate? At the moment, for your level of equity, HSBC are offering 1.59% for a fixed rate of 5 years.
    • Annielou
    • By Annielou 11th Oct 17, 9:41 AM
    • 72 Posts
    • 5 Thanks
    Annielou
    • #5
    • 11th Oct 17, 9:41 AM
    • #5
    • 11th Oct 17, 9:41 AM
    Hi there - my current interest rate is 2.25% (so BoE base rate plus the 2%). If HSBC are offering 1.59% then I guess it sounds like I should give up the BMR with Nationwide then. Lots of friends are telling me not to, but I'm not really getting why they say that! Guess I will go to a mortgage broker but I just wanted to understand it better before doing that.
    • TrickyDicky101
    • By TrickyDicky101 11th Oct 17, 10:51 AM
    • 2,729 Posts
    • 1,765 Thanks
    TrickyDicky101
    • #6
    • 11th Oct 17, 10:51 AM
    • #6
    • 11th Oct 17, 10:51 AM
    I'm on the BMR and the reason why I wouldn't countenance moving is that I have a very large repayment reserve that I can borrow back very easily (I know this to be true as I used it in 2016 without any problems). I have a very small outstanding balance, however, so the interest rate really doesn't impact me.
    • Annielou
    • By Annielou 11th Oct 17, 11:08 AM
    • 72 Posts
    • 5 Thanks
    Annielou
    • #7
    • 11th Oct 17, 11:08 AM
    • #7
    • 11th Oct 17, 11:08 AM
    Yeah I get that, but as I haven't overpaid anything at all and have no reserve to use, then I am starting to think I might just as well fix at a lower rate like Tony Cottee suggested above. So this thread has been really useful, thanks everyone!
    • 70sthrowback
    • By 70sthrowback 11th Oct 17, 3:05 PM
    • 88 Posts
    • 38 Thanks
    70sthrowback
    • #8
    • 11th Oct 17, 3:05 PM
    • #8
    • 11th Oct 17, 3:05 PM
    there is also the benefit of payment holidays if you stick with BMR, not sure of the exact trigger for this and rules but it is there.
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