Best to go onto the SVR?!

Feanor

Hi all,

Our fixed rate deals ends in June (currently at 4.83%) and I THINK it is probably best for us to just drop onto Nationwides SVR right? I think it will shave a good £300 off our repayments, but I just wanted some advice as to whether this is the best thing for us to do right now?

We bought in June 07 for £208k with a 5% deposit so our LTV certainly wont be great now!

Any advice would be really appreciated, even just to put my mind at rest that we will be doing the right thing going onto the SVR..

Thanks

dimbo61

You need to read the terms and conditions of your mortgage offer carefully!
Nationwide talk about the BMR( base mortgage rate ! ) which I think is there SVR and its 3% at the moment ( does it drop to 2.5% in april 2009 ? )
As you bought at the top of the market and only put down a 5% deposit you may well be in negative equity.
Give Nationwide a call at the mortgage centre and ask what happens and what rate will you be on in June.
You need to overpay if you can and if you are saving £300 a month because you rate drops from 4.83 to 3/2.5% then overpay the £300 AT LEAST!

Feanor

Hi,

Yes thats the plan, to overpay whatever we save. I will give them a call.

It definitely says in our terms and conditions that once the fixed rate is over we go onto the BMR/SVR.

Do you think this is the best option right now then, as opposed to looking for a new fixed rate deal?

x

dimbo61

I think you are stuck with Nationwide so if they have any fixed rate deals they can offer you consider it carefully.
With a poor LTV and possible negative equity just try and overpay what you can afford and wait for the market to improve.

dimbo61

If you borrowed £197,000 in June 2007 at 4.83% your mortgage should have been £1132.21 a month!25 year term.
Two years later you should owe about £188,500 and on the current SVR of 3.5% over 23 years you should be paying about £995.30 a month
Use "whatsthecost" to work out the exact figures.