Variable rate for 1 month in order to get better LTV deal?

bzd

Hi, was wondering about the following scenario.

I'm going to move house soon. I currently have a Nationwide lifetime tracker with just over 3 years to go on the ERC, but it can be ported (and boy is it a better product than those out there at the moment, so I want to -- BOE+0.18% for life of mortgage!).

The remainder needed for the move I have applied to be the 3 year exclusive Tracker (BOE+0.74%). The LTV is something like 73% so just in their 75% band. To get BOE+0.64% I'd need to be LTV 60% or less, but this is only their Existing Customers Moving House scheme (which I am).

For Existing Customers Looking for a New Deal, you can get the BOE+0.64% for an LTV up to 75%...

Now what's to stop me porting the lifetime tracker (I have to or incur silly fees), and getting the remainder of the mortgage needed in a non-restricted Variable rate mortgage, getting one months (much) higher mortgage on that rate, but then using their Existing Customers Looking for a New Deal with LTV up to 75% to get the 3 year tracker at BOE+0.64% (assuming it's still there in a month)? The non-restricted variable rate is fee free.

I haven't done the maths, but my instinct tells me this would be cheapest over the 3 years... ?

Anyone else think so?

Cheers,

bzd

hethmar

And are there arrangment fees for chopping and changing products?

luckyfool

Nationwide currently waive the arrangement fees for existing customers switching products onto deals (which have the £599 fees, though not the high fee products).

bzd

Well the basic variable rate mortgage has no fees for customers moving house, and a remortgage for existing customers currently has no fee, so in fact I'd make a saving of £599 on the fee for existing customers moving house onto the +0.74% deal.

I can't see what the catch is in doing this. Maybe I should discuss with the Nationwide.

Cheers,

bzd

confused31_2

I was looking to do something very similar, the thing is if you need additional money and you want a product to move house you have to pay the fee, but the svr rate there is no fee.

What i was thinking of doing was porting my current 2 years remainder of my fixed deal and then borrowing a additional 30,000 on the variable rate so that i dont have to pay the 599 pound fee.

It does say you can come of the variable rate at any time, so what i was hoping to do was leave it a couple of months and then transfer on to another fixed rate, but hopefully not have to pay the fee through the loyalty scheme and being a existing customer.

It looks like this canbe done as long as the loyalty scheme is there, but the way things are going it could be pulled at any time.

confused