Nationwide - Putting up rates tomorrow (tracker)

BaileyB

Just got off the phone with Nationwide as i have agreed a 5year fixed at 5.78% but was ringing about the tracker rates which is 0.64% and was this at the BOE rate or Nationwide BMR but confirmed it was BOE so the new trackers would be 5.14%

But he said the rates are going from 0.64 to 0.94 from tomorrow. I said there was nothing on the media centre which normally states these things on a thursday and they come live on the Friday but he said that they were going up tomorrow. I do not think he would just lie for the sake of doing so.

So the question is should i fix for 5 years or get the best out of my mortgage and track it at 0.64%.

koexelek

Nationwide rates are definitely going up tomorrow.

dimbo61

Do you want the security of a 5 year fix at under 6% ?
As you are allowed to overpay by £500 a month with Nationwide.
The current credit crunch is going to take some time to sort out and a
long term fix gives you 5 years to reduce your debts and increase the equity in your home.
Your call ( ps I have a long term fix ) and overpay.

FluffyFiFi

But you could take out the tracker and then switch to a fixed rate in a few months time. If the rates keep going down you could save quite a bit. Also, on a tracker you can still pay off an extra £500 per month without penalty. I don't think Nationwide charge you for switching to another one of their products if you are still in your tie-in period.

feisty1

FluffyFiFi wrote: »

I don't think Nationwide charge you for switching to another one of their products if you are still in your tie-in period.

WRONG!!!!!!!!

ERC's

Deal Term
Percentage Payable
2 years (Tracker)
1.5%
2 years (Fixed)
2.0%
3 years (Tracker)
1.5%
3 years (Fixed)
4.0%
5 years
5.0%
10 years
6.0%
25 years
6.0%
Lifetime
3.0%

BaileyB

I think he ment on a tracker rate. Just had it confirmed that if i want to change from a tracker to a fixed rate then all i need to pay is the reservation fee.

Just changed to a tracker

If you want to get in quick as the rate jumps from 0.64 to 0.94 tomorrow.

koexelek

feisty1 wrote: »

WRONG!!!!!!!!

They might if you wanted to go on a product with a higher rate though :rotfl:

[Deleted User]

@feisty1

"All of our trackers offer the option to switch to one of our switcher fixed rate products at any time without paying early repayment charges on the tracker mortgage. This means you can select a tracker product with confidence, knowing that if interest rates rise causing your payments to increase, you have the option to switch to a fixed rate product at any time, only paying any reservation fee for the new fixed rate product."

http://nationwide.co.uk/mortgage/existingcustomers/flexfeats.htm

So I think you're half-right, but not for the reason you cited. The customer wouldn't pay an ERC to "switch and fix" from a tracker mortgage, but they might end up paying another arrangement fee. And, of course, you may end up tied in for longer, as your new tie-in period starts from the date you switch to a fixed rate.

Gorgeous_George

BofE +0.64% compared BofE + 0.94% is £17.53 per month on a £100K mortgage over 25 years.

That £17.53 is, of course, better in your pocket than theirs but it shouldn't break the bank.



GG

Dick_here

Gorgeous_George wrote: »

BofE +0.64% compared BofE + 0.94% is £17.53 per month on a £100K mortgage over 25 years.

Which totals £5259.00 over 25 years ! :money:

payless

feisty - sometimes even the best of us get egg on our faces,

using big bold red and a subtitle like that makes its more of a omlette though