Help with mortgage rates.

lucy1980

Hi

Our 2 year interest only mortgage runs out next month and we are looking at our options what to do next. We are with Nationwide at the moment and they are offering 6.58% on a 2 year fixed rate with a £599 Res Fee on a mortgage of £152,180.02. They are also doing 5 years deals. I have been told that its best to stick with a 2 year deal. We are probably going to have to stay on interest only as re payments jumps up so much.

Any advice on this and ant other deals out there? Not really into all this mortgage stuff!

Thanks alot

ema_o

There are better rates than this, but depends what percentage of your house you own, if you have been paying interest only and own less than 10% this is not a bad deal, whereas if you own more than 20% there are far better deals out there. If you can post a bit more information people will have more relevant suggestions.
With the 2 year deal remember you might have to pay reservation fees again in a couple of years if the banks are still charging them.
Even with interest only I think some banks will let you overpay a limited amount, so even if you can't change to a fixed rate you could potentially pay £50 per month or whatever you can afford on to your mortgage. I have a feeling Nationwide does allow some overpayments but you'd have to check!

lucy1980

Hello

We own 12.29%.

Appreciate any help, what other information do you need?

Thanks very much

dwsjarcmcd

lucy1980 wrote: »

I have been told that its best to stick with a 2 year deal.

Don't suppose whoever told you this explained why this is 'best'?

What do you want?

I suspect many, including myself, may argue with their view

Locoblade

Also check again with Nationwide as I thought they were offering remortgages to existing customers fee free at the moment.

koexelek

dwsjarcmcd wrote: »

Don't suppose whoever told you this explained why this is 'best'?

What do you want?

I suspect many, including myself, may argue with their view

Unless someone has prior knowledge of the interest rate movements over the next few years, it is indeed impossible to say a two year fixed rate will be better than a five.

Two year rates used to be popular, because if interest rates had gone the wrong way for you, you were not tied in for too long.

However, with the ever increasing arrangement fees the lenders are charging, remortgaging every two years can be an expensive business.

lucy1980

Hi

We were told by a mortgage advisor that a 2 year deal was better but I really dont know if it is.

Can anyone help with what is best a 2 year or 5 year fixed in the current situation?

All help appreciated,

Many Thanks

dwsjarcmcd

Lucy,
These are down to your personal opinion and what suits you. How long do you need a certainty of payment for? As has been mentioned above do you want to pay fees every 2 years?

Any decent broker would explain why they are recommending any product so you can understand why it has been selected.

Personally, I would go for a 5 year fix every time but you may differ.

BillTrac

Lucy,

today we arranged another 5-year fixed with NW at 5.89 with NO fee.You can get a slightly lower rate but it involves a £1499 fee.

You may to look again at NW

Bill