Nationwide's tracker deals for existing customers

lazysaver_2

Hi,

I was just wondering what other people's views were on this deal. I think it could be a good one, but have I missed something?

My fixed deal of 4.98% ends at the end of July, £97k mortgage, LTV about 45%.

I was looking to stay on the Nationwide BMR at 2.5% for a bit and see what happens over the next few months, and use the £140 I will save for over payments. I am also looking to move within the next year and it would be convenient to leave it on the BMR to only have one product to sort out for my whole mortgage.

With the 2 yr tracker, the rate is only 2.99% (still saving me about £85 taking the £599 reservation fee into account) but is capped at 3.99%. Even at this rate i'd still be £30 better off than fixing now at 4.18%.

Even if things get really hairy, you can switch to a fix at any time, and there is no tie-in that I can see.

I think its a nice little middle ground - can benefit from the low rates with a nice safety net. What do others think??

payless

note if you take a new tracker you will later revert to higher SMR as opposed to BMR

raelill

Hi
I'm in the same position. My tracker ends 29th July - will I revert to BMR or SMR? £114k mortgage but about 75% equity in house. What do people think about fixing now at 4.19% or 3.99%? I'm currently on maternity leave so money's tight till December.

Thanks
Rae

lazysaver_2

Payless: Sorry - got my terms mixed up. I tend not to worry about that part as you aren't tied in and it seems to me that Nationwide are trying to keep their customers so a reasonable deal will always be out there.

Raelill - You should revert to BMR - I had that confirmed by my branch manager today. But 3.99% is a fair deal esp if you are not earning. But if its only for the short term I would maybe wait 6 months and see whats around then.

I've had a few conversations about interest rates today and not one person thinks they will shoot up any time soon i.e. the next 12 months. It would absolutely destroy businesses that are hanging in there at the moment and the property market is not actually improving in real terms as the cost of mortgages is still too high/have onerous conditions/have valuation problems for many buyers.

alanobrien

I note the NW new deals are now on their www site and the fees have all increased.
The 3 year fix has gone from 4.28% with a £299 fee for existing customers to 4.39% with a £995 reservation fee so there is no incentive for existing customers to remain with them anymore

HSBC now looks more attractive with 3.79% and £599 fee.

1618

Hi i am in the same position when my tracker finishes and reverts to the 2.5% BMR,i am staying on that rate because the signs are favourable that interest rates will not jump up that quick and the overpayment i can make currently will offset the interest rate increase when it comes!!!

nesssie1702

alanobrien wrote: »

I note the NW new deals are now on their www site and the fees have all increased.
The 3 year fix has gone from 4.28% with a £299 fee for existing customers to 4.39% with a £995 reservation fee so there is no incentive for existing customers to remain with them anymore

HSBC now looks more attractive with 3.79% and £599 fee.

Arrgghhh - bloomin typical. My fixed rate comes to an end this month with Nationwide and I was hoping just to move onto another fix. I'll think twice though, if the fee is now £995

payless

They are increasing rates tomorrow
( they still have a small number of no fee products - obviously at higher rates )

lazysaver_2

payless wrote: »

They are increasing rates tomorrow
( they still have a small number of no fee products - obviously at higher rates )

Is this for fixed rates or trackers as well?

payless

paste extract from their email

Key product changes

• 
  
• Increase in all fixed rate products
• Increase in selected tracker products

lazysaver_2

Oh dear - I am still deliberating about that 2 year tracker. I am concerned that I am the only person that thinks its a good deal and i'll be kicking myself in a years time!