Stay with Nationwide 2.5% BR or move to 5-yr fix?

Phoenix-1

We're coming off our Nationwide tracker in August and can transfer as existing customers to their 2.5% base rate. Not sure whether to ride this for a while and see what happens to interest rates as we would be able to move very quickly if they did start to increase, or fix now to something like the Northern Rock's 5-yr fixed rate (4.69%) with flexible overpayments. The difference in monthly payments would be in the region of £350 with £150,000 to borrow and we have have at least 75% LVR. Fix now or leave it and chance it?

koexelek

All down to personal opinion.

You are looking to pay a premium of 2.19% for the security of a fixed rate.

I personally would stick on the svr, as I don't expect rates to go up 2.19% for a long time...........but that's only what I think

joon79

I am in the exact same situation as you Phoenix, our Nationwide fixed rate deal finishes in August too - I've decided that I think the best thing is to ride it out for a while on the 2.5% base rate, as rates generally arent expected to move from the current 0.5% for around 12 months... will keep a close eye on the market though and jump in on a fix as soon as the signs are there!