Nationwide help

sharynm

Hi

I wonder if somebody could point me in the right direction. I took out my mortage with Nationwide 6 years ago and will have paid it off in January (I reduced the term right down and overpaid over those years) Yes I'm a good girl :A I have a fixed rate with them now that runs out next month July 31st so would be transferred to their SVR for the last 6 months and then it's finished. I had planned to stay in the house for ever but have seen a local property coming up for auction (it's an old wrecked farmhouse with a small amount of land that will probably need knocking down and starting again) I thought the auction would be a few months away but have just found out it's in the July 29th auction (even though they haven't even got any of the particulars ready for it yet!!) My problem is i'm willing to buy it for around the value of my house now (which is being valued on Friday but I think will be worth around 300k - I think the other property will go for around 250 -300k. It would mean selling my house and living in a caravan on site while we do it up. I want to borrow against my house to buy it, but when my house is sold I want to pay back a chunk of the money so i only have a small mortgage (I may need to borrow more in the future for renovations) I phoned the Nationwide yesterday and they won't let me pay back any money without charging me 5%!! as they won't let me go on the SVR, I have to go on a fixed rate which I am willing to do but once i've paid some money off. The best rate they offered me was 5.28% and a £1,000 arrangement fee! It all sounds a bit steep to me. I would just leave them but because my fixed rate runs out on the 31st of July and the acution is on the 29th I'm presuming I won't be able to do that without them charging me a massive fee? can anybody tell me what I should be doing or talking to? They have told me they will lend me £350,000.

I think the most important thing for me is not having a massive mortage, so being able to knock a chunk off

Thanks for getting to the end of this!

Joe_Bloggs

It sounds as you may be able to benefit from a fixed offset mortgage. With these
you pay mortgage interest on the difference between your mortgage capital and
your savings. Thus making a large savings deposit is the same as paying a
chunk off the mortgage without any early repayment penalties.
J_B.

dimbo61

Yes have a look at YBS fixed offset mortgages
Give them a call and explain the situation
If they will lend you the money to buy the new property and once you sell your existing home you can then pay the money into the offset account and use this money to rebuild !!! refurbish the farmhouse.
I think you need a 10% deposit on the day of the auction and pay the rest within 2 weeks ( check with the auction house !)
Dont knock down any buildings untill you have full planning sorted.
So get on the phone asap and good luck

sharynm

dimbo61 wrote: »

Yes have a look at YBS fixed offset mortgages
Give them a call and explain the situation
If they will lend you the money to buy the new property and once you sell your existing home you can then pay the money into the offset account and use this money to rebuild !!! refurbish the farmhouse.
I think you need a 10% deposit on the day of the auction and pay the rest within 2 weeks ( check with the auction house !)
Dont knock down any buildings untill you have full planning sorted.
So get on the phone asap and good luck

brilliant thanks to you both - i'll have a look at that straight away

samnorris2

sharynm, also check out the first direct offset. They have competitive rates now also.