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Switch to Tracker Mortgage?

Hi

I currently have a Nationwide mortgage for £160k on the BMR of 6.19%.

Should I switch to a Nationwide 2 year Tracker at +1.18% base rate of 4.5%differential, so 5.68% with a £299.00 fee now?

Or should I wait for the base rate to come down further? Any pros or cons to going either way?

Many thanks for any replies as I am off to see Nationwide at 4 today.
Thanks
Ant

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    If you go for the tracker rate, and the BoE goes down, your tracker rate will also go down by the same amount

    Just make sure you find out from them what "collars" they may have on the tracker rate i.e. if there is a rate below which the tracker will not go, and if they can chnage the tracking margin for whatever reason

    Make sure they give you something in writing, if they give you a verbal response.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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