Mortgage with Nationwide

littlechezza

Need some advice please, mortgage details are as follows:
101354.08 ends Feb 2031 have 5.09% deal until Jun 2010 have been told it would cost £1757.42 to come out of this deal.
Further advance 13626 5.28%
Further advance 11781 6.85%

Nationwide have said I can come out of the deal but they are not able to offer another mortgage as they are currently looking after their saver. We are obviously concerned in case rates go up again and want to secure a good deal before June of next year.
I've been told to come out of the whole thing would cost £129284.04 and this would include the 1757.42 and a £90 admin fee.
Can anybody offer some advice on what we should do, anybody with a crystal ball would be much appreciated.
Thanks

Joe_Bloggs

It looks like it will cost around £2500 to leave the Nationwide from your figures.

Nationwide are not going to offer you anything new, perhaps until you get within a few months of your fixed rate ending.

If you want to get a good rate with another lender then you have to have a favourable loan to value ratio (say less than 80%). Thus you need to know how much your house will be valued by your future lender. You must also have a good credit record and not have loads of debt. You will also have to find the product fees for the new mortgage, perhaps around £1000.

I face a remortgage situation with Nationwide in June 2010. I will not be taking out any loans, running up any credit card debt, or missing any payments. What I face if I don't move is their old Basic Mortgage Rate of 2% plus the variable Bank of England base rate of 0.5% (2.5% at present).

J_B.

Thrugelmir

The cost of redeeming your mortgage and applying for a new one at the current time outweighs any savings. As a new fixed rate may not be much better.

If possible reduce the size of your existing debt by overpaying.

littlechezza

I can see where you are both coming from, I guess I'm just worrying in case rates start to increase, the house has recently been valued at £152000 and we do have a credit card and loans to pay off, guess our only way is to budget, budget, budget and take things easy for a while.
Thanks

Thrugelmir

littlechezza wrote: »

I can see where you are both coming from, I guess I'm just worrying in case rates start to increase, the house has recently been valued at £152000 and we do have a credit card and loans to pay off, guess our only way is to budget, budget, budget and take things easy for a while.
Thanks

That changes things somewhat. Why worry about mortgage rates when you've get credit cards. Payoff most expensive debt first.

littlechezza

I know the credit card is high but not as high as the mortgage, guess I have my priorities the wrong way round.

mdhelp

Thrugelmir wrote: »

That changes things somewhat. Why worry about mortgage rates when you've get credit cards. Payoff most expensive debt first.

I agree. I think there is a general fixation on getting a remortgage just because the rate looks attractive. Over the term it's more often than not cheaper to focus hard on the expensive debt than to consolidate. There are some good deals on cards like Barclaycard at 6%ish (if it's still available).

Thrugelmir

littlechezza wrote: »

I know the credit card is high but not as high as the mortgage, guess I have my priorities the wrong way round.

The balance is lower, but what rate of interest are you paying on the credit card ?

Lynn11

As they state try to pay off your credit card and if you are able to pay off this then you could start to overpay your mortgage )nationwide allows you to pay off £500 per month) and this will bring down you mortgage and hopefully you can find a reasonable deal next June. Remember you can secure a new deal with nationwide about 3mths prior to your existing deal ending. Good luck.

We are with nationwide and decided to stay with them last month - good decision for us.