Will Nationwide drop ther SVR at 4.69%?

treliac · 5 December 2008 at 1:16AM

Dunno, but wish I was with Nationwide.

Heyman_2 · 5 December 2008 at 1:33AM

ian-d wrote: »

I'm confused, what advantage is there to a tracker rate of presently +2.19% (25% deposit) over just being on their base rate which is +1.69%? Surely they both move up and down with the market? Can anyone help with my obvious lack of understanding

They're not letting new customers onto their SVR, so I think that's whom the Tracker rate is for.

I agree, it would be pretty silly for an exisiting customer to move onto that Tracker rate! The only advantage I can think of is that they can vary their SVR at any time, although they do have a promise that it will never be more than 2% above BofE rate, so it's actually no advantage at all!

bright_15 · 5 December 2008 at 1:58AM

Heyman wrote: »

The only advantage I can think of is that they can vary their SVR at any time, although they do have a promise that it will never be more than 2% above BofE rate, so it's actually no advantage at all!

All new rates that are part of a deal i.e. fixed,loyalty,tracker seam so uncompetative at the moment.

I'd imagine they would have had alot of people shifting from other lenders to the Nationwide SVR, simply waiting for the right time.....

It would be cost effective for them to offer some good 'Fixed' deals to get people off the SVR - currently 5.78 over 5 years.....

But i think most people will just sit on SVR and wait/overpay..... unless the rates look like they might rise (as if!)

imtonksy · 5 December 2008 at 2:01AM

First time on here so be gentle with me...

Im in a right pickle here and need some help and direction..

I am currently unemployed and on Benifits so inturn after waiting the 39 week wait I was intitled to getting help with the interest on my morgage payments from the goverment.

They help on the interest of the first 100K with a max up to 5% (this is not a fixed % just a max %) of the morgage and I pay the rest of the short fall as my morgage is 144K this works out roughly with a morgage of £900 a month they were paying £500 per month in August when it all started.

Also in the August my Nationwide morgage 2 yr fixed rate finished and as I am on benifits I was limited to what type of morgage I could switch it too so I plummed for another fixed rate for 3 yrs at 6.05%

everything was cool until the interest rate started to tumble, the first time it happened the money i got went down about £40 per month then with the second big cut it went down a massive £120 per per and now with another cut today down to 2% it will mean i will have to pay approx £650 of the £900 per month which will reallly kill me off...

So the dilemma is do I go back to the nationwide and try to get out of the fixed rate and take the hit on the penalty for leaving it early and try to get a tracker or something similer, even if i get on the SVR rate of 4% it would still be 2% better than im currenly on, or do I try to get another morgage elsewhere with a new lender (very unlickly in my current situ being on benifits Etc) or do I try to ride it out on the fixed rate and hope the interest rate rises in the near future

When I took out the morgage I put down 60K so I do have a bit of play with the nationwide but this is getting more unstable with the fall in house prices and my collateral falling monthly.

Any guidence or advice would be very much appreciated.

[Deleted User] · 5 December 2008 at 8:32AM

imtonksy - i suggest you start a new thread

According to the BBC, the Nationwide SVR is dropping to 4%

To think, in the summer i was paying for 6.49%, now its dropped to 4%.. my payments have come down by £370 a month

Doing a little dance now, must remember to save this money up

imtonksy · 5 December 2008 at 10:42AM

Thanks Ringo

I will do this as soon as I can figure out how to do it.... LOL

Thanks again.

Galvatron_2 · 5 December 2008 at 11:32AM

This is good news - 4% and likely to go lower. Will affect other people more than me as I have a small mortgage of 72K - was paying £490 pm now it will be something like £385.

Using the BBCs mortgage calculator, if the BOE rate did fall to 0% and nationwide had theirs at 2%, I'd pay £300ish - does that sound right?

I suppose the problem with these low rates is people getting used to having more disposable income, then being hit when the rates go back up.

Still, it's helpful at Christmas when I also have my MOT, Cat Tax, £150 electricity bill etc...

OnePound · 5 December 2008 at 11:47AM

I have had my mortgage with Nationwide for quite a few years and have always been happy with their fair rates (not always 'best buy') and service. I have approx. 1/3 of my mortgage coming off a fixed in january and it is good to know that their SVR is the lowest on the market.