Who is passing on the new rate reduction?

Lodge

Being a bit thick here!

I'm on a fixed rate mortgage with Nat West (fixed at 5.89%).

When the two year term is up in a few months I assume I will be put onto SVR?

I also assume they will offer me another "deal"?

If I just opt for SVR (because it is low at the moment) can I then go onto a "deal" at a later date......?

My credit rating has taken a battering since taking out the mortgage so will they not offer me a deal and will I be forced to go onto SVR?

Lodge

Lodge wrote: »

Being a bit thick here!

I'm on a fixed rate mortgage with Nat West (fixed at 5.89%).

When the two year term is up in a few months I assume I will be put onto SVR?

I also assume they will offer me another "deal"?

If I just opt for SVR (because it is low at the moment) can I then go onto a "deal" at a later date......?

My credit rating has taken a battering since taking out the mortgage so will they not offer me a deal and will I be forced to go onto SVR?

Anyone know the answer to this?

Thanks.

System

You will go onto the SVR

A new deal will depend upon your LTV, not sure about the credit rating.

Lodge

Joeskeppi wrote: »

You will go onto the SVR

A new deal will depend upon your LTV, not sure about the credit rating.

Thanks for this.

My mortgage balance will be around 120K.

House will probably be worth around 130K

Will I get offered a deal, in your opinion?

Also, is SVR a good deal anyway at the moment, with the rates being so low anyway?

Thanks.

L.

Lodge

Joeskeppi wrote: »

You will go onto the SVR

A new deal will depend upon your LTV, not sure about the credit rating.

also, at the moment my 122K mortgage (at 5.89%) is costing me £760 per month.

What will it come down to on the SVR (roughly, if anyone knows Nat West's SVR??)

Thanks.

L.

Lodge

Lodge wrote: »

also, at the moment my 122K mortgage (at 5.89%) is costing me £760 per month.

What will it come down to on the SVR (roughly, if anyone knows Nat West's SVR??)

Thanks.

L.

Anyone help me with this?

System

You'll be paying approximately £643 on Natwests SVR of 4% assuming you have a 25 year term. I'm not sure if that 4% is before or after this months rate cut, so it could be less.

Natwest have some brilliant deals for existing customers on their website, seems as though you could get a 5 years fix at 5.04% with no fee - http://www.natwest.com/personal/mortgages/g3/fixed-rate.ashx#tabs=3

Lodge

Joeskeppi wrote: »

You'll be paying approximately £643 on Natwests SVR of 4% assuming you have a 25 year term. I'm not sure if that 4% is before or after this months rate cut, so it could be less.

Natwest have some brilliant deals for existing customers on their website, seems as though you could get a 5 years fix at 5.04% with no fee - http://www.natwest.com/personal/mortgages/g3/fixed-rate.ashx#tabs=3

Many thanks for this!

Yes, the Mortgage was for 25 years (taken out two years ago, for 122K)

The 5 years fixed @ 5.04% sound good though!

Also, when the two year term is up do I have to agree to a deal straight away?

Or can I go on SVR for a while then decide on a deal at a later date?

System

You can sit on the SVR as long as you like but remember Natwest can change their deals whenever they want, maybe they won't offer people with low LTV a deal in future (I emphasise "maybe").

Personally if it was me I'd bite their hand off for the 5.04 but one thing I've discovered during all this is that I'm the kind of the person that hates uncertainty on money related matters. You might be a bit more of a gambler

Edit: Of course what you really want to do is give them a ring and find out from the horses mouth I suppose.

MPD

stradlinho wrote: »

Any news on whether Northern Rock will pass it on ?

Got the letter from NR yesterday, they are cutting their SVR by 0.45%. For some reason they haven't announced this on their website and the BBC hasn't run it's usual "who's passed the cut on" story this time.