Nationwide tracker ending

1618

Hi i am a novice in the mortgage game and purchased my first house 2 years ago and was lucky enough to take a tracker out with the Nationwide which ends in a couple of months,i have looked at the documentation and noticed it now reverts to the BMR which is 2% over the bank rate.This looks very good to me ,i have a mortgage of 50K on a property worth 125K should i stay with the BMR or look at fixing??:T

opinions4u

I would stay on the 2.5% rate for now, but keep a close eye on the fixed market and the news.

At some point rates will start going up again and you probably want to jump on the fixed train at that stage.

What's your property worth and how much do you owe? (doh just seen this!!)

diable

i have a mortgage of 50K on a property worth 125K

Someone was still sleepy when posting a reply ;o))))

curlywurly_2

Have you looked at Nationwide's variable rates today. Their site says they changed at the end of April and the varibale rate is now 3.99%. A mighty leap. I'd be interested to know if the 2.5% rate was still available. Does anyone know?

garywjack

Nationwide's BMR is currently 3.5%

alphason

curlywurly wrote: »

Have you looked at Nationwide's variable rates today. Their site says they changed at the end of April and the varibale rate is now 3.99%. A mighty leap. I'd be interested to know if the 2.5% rate was still available. Does anyone know?

BMR is the rate that customers who took out a mortgage before 29th April 2009 will revert to at the end of there deal, currently 2.5%. You can stay on this this as long as you like, but once you leave you can't come back. Not available to any new borrowers.

SMR is the new rate that customers will revert to at the end of there deal for mortgages taken out after 29th April. Nobody will be on this rate for at least 2 years.

alphason

garywjack wrote: »

Nationwide's BMR is currently 3.5%

It's 2.5%, been this rate since 1st April.

1618

My tracker commenced in 2007 and it clearly states the mortgage will revert to the BMR which is 2% above base rate at the end of the tracker therefore currently 2.5% still looks the best bet at the moment and i will keep an eye on the base rate

humfer

1618 wrote: »

My tracker commenced in 2007 and it clearly states the mortgage will revert to the BMR which is 2% above base rate at the end of the tracker therefore currently 2.5% still looks the best bet at the moment and i will keep an eye on the base rate

Personally I would stay on the BMR. As well as the low rate which I doubt will move for the rest of this year you also have the added bonus of no fees which you would have to pay if you took out a new fixed deal, and also that it is totally flexible so you can pay loads more whenever you want

My tracker (BoE -0.07% with 2% floor) finishes next March, so still a while until I need to make the decision, but at the moment I'm planning on staying on the BMR for as long as possible