Nationwide Fixed or Base Mortgage rate?

Squish_21

Dan_Stevenson wrote: »

It is very interesting reading the above thread. I am in a simalar position but I still owe £125k on my mortgage over 27 years!! My 2 year fixed rate ran out in Sept and I am now just on the Nationwide variable base rate. This is working quite well for me at the moment as the interest rates are going down but I am looking for a fixed rate deal at around 3-4% which I can fix for a long period. Is this the right thing to do? What advise can you give?

Dan sounds like a good plan to me. I think and hope the fixed rates will come down soon. This will then be your perfect opportunity to fix at a low rate.

I drop to SVR next month :j

JayZed

I'll also be dropping onto the BMR shortly and I plan to stay on it for a few months. I wouldn't fix at 4.88 - I think fixed rate deals will come down further, though obviously the trick is to catch them at the right time before they bounce up again!

freeasabird

Thank you everyone for your advice. I'm leaning towards a fixed rate so that I have the security but I might stay on the BMR for a while and make some overpayments. I've checked a few of the other banks and their remortgage rates are not that good. I coudn't see any under 5% and of course there's the hassle of moving to another lender.

dimbo61

The BOE rate is now 1% and the lenders have not really dropped there long term fixed rate deals YET with rates of just below 5% for 5 and 10 year deals.
If you can get a 5/10 year fix for 4/4.5% that would be very good in todays market.
What difference 0.5% would make when you only owe £38k
The other idea to spread the mortgage over the 8 year term take a 5 year fix at 4.88% and overpay say £215/220 a month would also clear the mortgage in 5 years. GOOD LUCK

freeasabird

dimbo61 wrote: »

The BOE rate is now 1% and the lenders have not really dropped there long term fixed rate deals YET with rates of just below 5% for 5 and 10 year deals.
If you can get a 5/10 year fix for 4/4.5% that would be very good in todays market.
What difference 0.5% would make when you only owe £38k
The other idea to spread the mortgage over the 8 year term take a 5 year fix at 4.88% and overpay say £215/220 a month would also clear the mortgage in 5 years. GOOD LUCK

I remember the bad old days of the eighties with sky high interest rates so under 5% seems pretty good to me. I think a bird in the hand is better these days especially when you just don't know what the global financial situation will be like in a few years time. Thank you.