nationwide, remortgage and secured loan query

schmickleicklepickle

My fixed rate with Nationwide is due to finish in September this year and taking into account just the mortgage I have approx 80% equity (taking a low valuation on house, i.e. what I paid for it 3.5 years ago!) I am thinking that with this state of affairs I would have no problem getting another deal with Nationwide.

However, I also have a secured loan which takes total equity in the house to approx 95% - would Nationwide take this into account or would they just be interested in the LTV for what they would be lending?

I hope that makes sense.

I currenlty save ~ £100 in an ISA but I am thinking I would be much better overpaying the mortgage and trying to look as positive as possible to overcome the potential equity issue.....

We do not have an issue with affordability but would like to stick with a fixed deal if possible - is this likely?

many thanks in advance for your opinions!

Joe_Bloggs

This is not mortgage advice but my observations regarding Nationwide.
After your fixed rate period ends you may well go on to Nationwide's Basic Mortgage Rate (BMR). This is often termed SVR in general mortgage discussions.

This is was recently guaranteed ,by Nationwide, to track the Bank of England base rate by no more than 2%. At present the Bank of England base rate is 1.5% so you will face a BMR of 3.5% were your fixed rate deal to expire in February. I know this is not the case but I mention it because there is a great deal of uncertainty in what the Bank of England base rate will be.

Some may see this as a good rate to be going on with. Lets hope the the people at the Bank of England don't go crazy.

Open up an account to make mortgage overpayments. These overpayments are tax free also, just like a cash isa. You get to use the flexible features in the mortgage this way. Pay of debts at a higher interest first !

J_B.

schmickleicklepickle

Thanks for the advice - I will change my savings from ISA to mortgage.
I would still appreciate any one's thoughts on the LTV/equity issue!

Many thanks