fix or not

DMC75_2

i have got two options :

stay on svr with nationwide

take a fixed rate with nationwide at 4.98 for 3 yrs

My LTV is 84% .

Please help

the_bandit

How crucial to you is that know each month what your mortgage is going to cost you??

What would a 1% increase in the Nationwide SMR cost you?

dimbo61

If your LTV is 84% you think a 3 year fix will give you time to reduce the debt and increase your LTV and if you can afford it you can alos overpay by £500 a month!
please check with Nationwide and good luck
This is only my opinion !!!

DMC75_2

ive had two mortage valuation in jan 76% LTV and june 84% ltv , latest mortgage valution was very strict and went on 2004 values as no properites have sold nearby.

I was tempted on the fix as seems good rate but there is 995 fee as well so wont give us time to reduce mortgage .

I just dont know?

the_bandit

IMO interest rates won't move much from where they are now for the next 18months. The Nationwide SMR is currently 3.99%.

There is no way I would pay a £995 product fee and also nearly another 1% for my mortgage in a month when I could stay on the SMR.

If money could get tight when interest rates pickup I would save as much money as I could just now to help later on.

If spare cash is not much of an issue, then I would overpay the mortgage as much as possible and look at remortgaging later on when your LTV improves.

frivolous_fay

Interesting, the news article on fixes maybe coming down links to this thread

I'm going to be seriously peeved if they do come down. I was advised to bite Abbey's hand off if they were offering us a fix (we are in neg equity). I have done so and we will soon be on a better rate than before. The fee was upfront only so I guess we're stuck with it!

belfastgirl23

Depending on when you took out your original mortgage with nationwide you may end up going onto a 2.5% SVR (this is the case for me when my fix finishes at the end of this month). As far as I know the 3.99% SVR only applies to new customers. Existing customers coming to the end of their fixed rate go onto the bank of England +2% rate that we were promised when we took out the fix. So 25%

I'm currently on 5.47% so this is the equivalent of a £300 saving on my £200k mortgage every month. So I'm def not going into a fix until the bank of england starts pushing rates up. I just have to accept the risk that goes with this.

However I have been overpaying to the tune of £300 a month so I have some slack to take the risk with. If you would be financially crippled should rates go up then I'd say go ahead and fix. Don't forget though that you can reserve a fix for 90 days ahead and benefit from the svr in the meantime