Remortgage advise

after_a_bargain

Our current fixed rate with Nationwide finishes at the end of Oct. so we are looking for a new deal. We are looking for a 175,000 pound (sorry my pound symbol does not work) mortgage, part interest only / part repayment. Our total borrowing is approx 55% of the propertys valuation. We are looking for a low rate either fixed or tracker. We don't mind adding a fee to the mortgage,as long as it is worthwhile (ie gives us much cheaper repayments). The most important thing for us at the moments is to keep the payments as low as possible for the next few years. Any advise would really be appreciated.

_Andy_

Start by having a look at what Nationwide can offer you, then compare with the market by having a look at Moneyfacts or the FSA mortgage tables.

after_a_bargain

Thanks for your quick reply. Natiowide will offer 5.88% 2 year tracker (no fee), but this still puts my payments up by over 160 pounds a month. Is there anything better?

Locoblade

I believe Nationwide are still running their "no fees" offer to existing customers remortgaging, so you may find you have the choice of all their products without any fees.

Assuming your current 2 year Nationwide fixed rate is similar to mine at under 5%, you're not going to get near that in the current market, at least not without hefty fees, which over a short fix period will negate the low rates anyway. For example Yorkshire Bank do a 2 year fix under 5% but the fee is something silly like 2.5% of the loan amount (about £4k in your case), so although you save £100-200 a month for 2 years, you end up with significantly more capital on the loan at the end of 2 years than if you had taken a higher rate with no/small fee.