Nationwide SVR - is this possible?

Milarky

http://www.nationwide.co.uk/intermediaries/mortgages/remortgages/remortFlexbenBorrow.htm

I have £1 mortgage with Nationwide (which was taken out as a variable rate 'interest only' mortgage in 1987 - so there are 2.5 years of that original term left) Does 'borrow back' apply in these circumstances and (more importantly) is there a fee for it?

(2.5% 'borrowing' looks a possible arbitrage opportunity)

I][URL="http://forums.moneysavingexpert.com/showthread.html?p=19764801#post19764801"]Reposted[/URL] to Mortgages and Endowments as suggested[/I

opinions4u

Milarky wrote: »

http://www.nationwide.co.uk/intermediaries/mortgages/remortgages/remortFlexbenBorrow.htm

I have £1 mortgage with Nationwide (which was taken out as a variable rate 'interest only' mortgage in 1987 - so there are 2.5 years of that original term left) Does 'borrow back' apply in these circumstances and (more importantly) is there a fee for it?

(2.5% 'borrowing' looks a possible arbitrage opportunity)

Looks rather good to me.

You may be better posting on the mortgages board.

Find out what the arrangement/valuation fees are (if any) and any possible redemption fees for when you pay it off.

Those 6.3% Egg accounts look most exciting (remember to knock off tax) - not to mention less thrilling ISAs.

amethystcash

We are in the same position and have been advised that we can borrow up to the value of the original mortgage at a preferential rate at any time and that there are no fees relating to this. Only restriction you will face is that your monthly payments will be based on paying back whatever you borrow over the remaining term of the original mortgage which in your case is 2.5 years.

Milarky

amethystcash wrote: »

We are in the same position and have been advised that we can borrow up to the value of the original mortgage at a preferential rate at any time and that there are no fees relating to this. Only restriction you will face is that your monthly payments will be based on paying back whatever you borrow over the remaining term of the original mortgage which in your case is 2.5 years.

(i.e. they put it on a repayment basis? That would make the individual payments relatively large for the time remaining.)

Update: I called them and asked what I would be allowed to borrow (as I had no idea really) - £285!! Well, needless to say, I did not press on for any further details...