Mortgage Help!

lunagirl_2

Hi

Looking for some advice please...i have a 2yr fixed with nationwide at 6.49% which i took out on 108k (10% deposit) last August. I am pretty unhappy that my repayments are almost £700 a month as if i had went with a tracker they would be less (stupid mistake but can't predict the future)

Basically what im wanting to know is..would it be possible to switch to a better mortgage deal within the nationwide? or with another lender? Or would i have to stump up more of a deposit for not much gain?

Exit fees aren't much on current deal and i'm willing to pay the penalties if better return in future.

or should i grit my teeth and sit tight for another 17 months?

1984ReturnsForReal_2

Its going to be cheaper staying with what you have.

Mistakes cost, unfortunately.

Luckily you only fixed it for 2 years.

beecher

Work out how much a different deal would cost, taking into consideration both Early Repayment Charges and arrangement fees. Then work out if it would be worth the money or not.

Big potential problem I see is that your LTV will be more than 90% now, and so you won't be able to get a deal elsewhere - you need to phone up your current lender to see if they would offer you a new deal

Gorgeous_George

You need to add up the cost of moving and then decide which mortgage you want to switch to. Bearing in mind house prices have fallen, your LTV may restrict your choices.

Now is not a good time to switch to a tracker as they cannot track downwards very much but there's loads of room for them to move higher.

Another fixed rate may make a move worthwhile but Nationwide might not want your custom.

I would never recommend a 2 year fix but, in your case, it has turned out better than a longer term fix. In August next year, you'll probably revert to Nationwide's exceptional BMR (if base rates are still extraordinarily low).

GG