Is this a good deal?

jalowes2002

Morning money experts.

Our fixed rate with Nationwide finishes in November (was a 5.37% deal). We only have 5 years and 3 months left on our term and £27,000 left on our mortgage (value of house £190,000). Nationwide have contacted us to say if we swtich to another one of their products we wont have to pay a reservation fee (usually £599 or more).

The products they are offering are- 3 year tracker at 5.64% (no fee)
2yr fixed at 5.68%
3 yr fixed at 5.78 %
BMR at 6.49 %

This seems good to me (would probably opt for a fixed rate over 3 years) especially with no reservation fee, but as always am a bit cautious thinking is this too good to be true. I have looked at a few comparison sites and these deals do seem competetive, but wondered what others think? Plus have never really understood a tracker, and in the current climate is it best to fix a mortgage at these rates. Hope that makes sense.
Thanks in advance.

adandem

I think that's a good rate, we're with YBS, the best we've been offered over 5 years is 5.99%. Slightly lower for 3 years I think but the lack of charges makes it quite competitive.

BillTrac

jalowes2002,

we are in a similar position 5 year fixed with NW finishes end September. Got another 5 year fixed at 5.78 with no fee(then thats our mortgage finished).

We did have a little look around but the fees some people wanted made the total over the 5 years much more than staying put

good luck

Bill

dimbo61

Can you afford to reduce the mortgage to 3 years and take the 3 year fix ?
you will save a lot of money in interest and have no more remortgage fees.
Or go for the 5 year fix at 5.78% ! if you can get that and overpay a little each month so that the mortgage will be paid in 5 years
GOOD LUCK

jalowes2002

dimbo61 wrote: »

Can you afford to reduce the mortgage to 3 years and take the 3 year fix ?
you will save a lot of money in interest and have no more remortgage fees.
Or go for the 5 year fix at 5.78% ! if you can get that and overpay a little each month so that the mortgage will be paid in 5 years
GOOD LUCK

Thanks for that suggestion, tbh i hadnt really though about shortening the term but it makes so much sense. Will have to crunch the numbers a bit to see if we can afford it. I am on maternity leave at the moment, so it might be a bit tricky, but definately worth it.

Thanks for all the replies. It sesm NW are pretty competitive.

bzd

In that case, why not go for the 5 year fixed, and if you go back to work after maternity leave you can overpay by up to £500 per month with NW which comes straight off the capital, reducing the interest payments (and obviously the capital too). You could probably shorten the term to 3 or 4 years by doing that, without the extra pressure in the first 6 months to a year!

Also, you can borrow back any overpayments in future (without penalty) if you need to.

I'm not a financial advisor, but I am with NW.

Ben