Nationwide fix Ending Jan - BMR or Switch?

neek

I have a 2yr 5.08 fixed mortgage from nationwide which ends in feb 09.

Today I got a letter from nationwide saying that I can switch my mortgage online (https://www.nationwide.co.uk/switcher).

Sadly the rates that they offer are not good.

For example, 2yr fixed at 6.28% (£299 reservation fee).

Anyway, I really just wanted to quote what was in the letter regarding switching early.

"As you are in the last 90 days of your current deal, you can switch to your new deal product without incurring an Early Redemption Charge..."

So it looks like going onto the BMR would be the right thing here. My only concern is that if the base rate rises dramatically in a short period - how quickly could we switch to a better deal?

neek

I just called nationwide up and enquired about switching to the BMR with no redemption fee straight away.

Sadly the lady said that they don't offer this anymore, without a fee, so the letter they sent out to me today was wrong! Gah.

She did waffle something about the base rate coming down to 4% in Jan though

Dog_on_wheels

neek wrote: »

My only concern is that if the base rate rises dramatically in a short period - how quickly could we switch to a better deal?

Just wanted to ask this question myself too really. My 4.49% finishes end Feb and I go onto the 4% rate which is good - but I'm worried about the rate increasing dramatically in a short space of time. Anyone got any thoughts about this?

Niksan

if you want to know what you're paying for x years, go onto a fixed, if you're worried about increases a SVR or a tracker doesn't sound like it's for you. I know with C&G it should be pretty instant for moving to a deal from a SVR, unless you're worried it may take months to move ?

savingGrace

paulsrich wrote: »

Yes you can switch at Nationwide. I have been on a 5 year fix at 5.39% which wasnt due to end till the end off Feb 09. Contacted Nationwide so moved it to SVR of 4.69% 90 days before the fix ended. Saved me around £40 a month. The savings will go towards the £299 admin fee for my new deal........ Going to wait and see what the BOE do on Thursday first then perhaps move to the 2 year tracker, +1.99% above BOE.

Cheers

Paul

I wonder if you are aware that Nationwide has - at least for the time being- stopped offering new trackers to people. Presumably they (reckon) they would lose too much to offer them with Bank rates falling so much. My regret too that I did not grab one a month or so ago. Still the bMR will be falling to 4% on 1st January, so although a tracker would be even lower, it's not bad at all- I think.

Ingsy

Agreed, 4% isn't too bad. Just hope I can get enough equity in the property to be able to switch before the rates start going back up again...

luckyfool

neek wrote: »

I just called nationwide up and enquired about switching to the BMR with no redemption fee straight away.

Sadly the lady said that they don't offer this anymore, without a fee, so the letter they sent out to me today was wrong! Gah.

She did waffle something about the base rate coming down to 4% in Jan though

The letter was right. BMR is not offered as a new product, so you cannot "switch to it", only allow your current deal to lapse onto it at the end of the term as per your contract. You can switch penalty free to any currently available product, but this doesn't include the BMR.

Dick_here

luckyfool wrote: »

The letter was right. BMR is not offered as a new product, so you cannot "switch to it", only allow your current deal to lapse onto it at the end of the term as per your contract. You can switch penalty free to any currently available product, but this doesn't include the BMR.

Yes, when I enquired I was told that I couldn't switch without paying the ERC - as if that was a serious option ! They still tried to get me to see a mortgage adviser about it, I declined... :rolleyes:

feisty1

[quote=!!!!!! here;16856295]when I enquired I was told that I couldn't switch without paying the ERC - [/quote]

Do you mean during the last 90 days of your current deal?

Dick_here

feisty1 wrote: »

Do you mean during the last 90 days of your current deal?

Yes, incredible eh.