Are you on SVR voluntarily?

bully1234

We've been on 2.5% Nationwide variable rate since March - think we'll stick on this for a while! We are not overpaying just holding onto the money in case interest rates creep up.

koexelek

bully1234 wrote: »

We've been on 2.5% Nationwide variable rate since March - think we'll stick on this for a while! We are not overpaying just holding onto the money in case interest rates creep up.

Nationwide will hate you for doing that:D

they are desperate to get borrowers off of the 2.5%rate

getmore4less

sammyjammy wrote: »

I've caved

I've arranged for Halifax 4.69% 3yr fix (fee and hastle free) to start when my tracker finishes in November.

I'm now of the opinion that fixes aren't going to get any cheaper and I if BOE rate rises to 1.25% or more then I'll be better off, its swings and roundabouts but now I've decided I can get on with overpaying as much as poss so after three years I'll hopefully have only about 30k left.

I'll have to start ignoring those MPC announcements each month.

Have you done the proper calculations based on overpaying?

The longer the tracker rate stays below the fix rate the higher above the fix it has to go to be worse off at the end of the fix on a 3 year deal this can be has hogh as 8% if the rate stays low for 18months.

will do the calc for yours back soon.

I will base this on £60k over 15y with a 3year fix.
rates stay low for 18months then rise.

4.69% fix payment is £465pm after 3 years £51,108.48 outstanding

3.5% tracker paying £465p month for 18months £54,648.55 outstanding

To reach the target of the fix over the next 18 month with the same payment the rate has to stay below 6.07%

so you can take a base rate rise of 2.57% to 3.07% at the 18 month point not the 1.25% you have.

The longer the rate stays low the higher the rate you can take up to a max of around 10%

Dick_here

koexelek wrote: »

Nationwide will hate you for doing that:D

they are desperate to get borrowers off of the 2.5%rate

I'm one of those borrowers ! :j

The point is, as well as wanting us to switch to a new, much more expensive, and with fees, fixed rate (not very money-saving !), if you do so when that finishes you go onto their more expensive svr type thing, not back to the existing one we're on.

I'll stay where I am thanks all the same !

SandC

I can't remember when mine is due but I'm probably going to go on to SVR unless interest rates have risen by a couple of %. See I have a mortgage of less than 20k and it makes no sense to me to have to pay ridiculous figures of £995 for a new deal.

KarenBB

bully1234 wrote: »

We've been on 2.5% Nationwide variable rate since March - think we'll stick on this for a while! We are not overpaying just holding onto the money in case interest rates creep up.

I'm on a fabulous tracker with Nationwide. I've been overpaying while the rates have gone down rather than hold onto the money. If I need it back I only need to write to them and they'll paywhat I need into my flex account .

SmileyG_2

KarenBB

Why are you overpaying on a "fabulous tracker" rate?

If you look hard enough you could put the saved money into a Cash Isa or a regular saver somewhere and get a better return on your cash.

If interest rates rise you can always use the savings to overpay your mortgage, (albeit at only £500 pm without penalty).

Every little helps....

SmileyG

KarenBB

SmileyG

To be honest because I'm not as organised as I should be, a bit lazy really.

All I could remember was it's a lifetime tracker 0.14 above base but I've had to check what the floor was that applied to it, it's 2%, so I'm paying 2.14%.

Not paying 2.14% is like getting 2.14% net - not huge I know but I transfer money over when I want to and it would take a lot for me to claim the money back from the mortgage. It's almost instant access too. I can't see me getting round to putting money in a saving account - I'll hold my hands up, I'm not a good mser in that respect. I also think I'd be more likely to withdraw it from a savings account than I am to take it from the mortgage. Maybe I should look around for an instant access savings account that will give me more than the 2.14% net that gives me the same rate even if I don't add to it every month as my overpayments are a bit eratic.

nat_2

Our Nationwide tracker deal (just below 2% at present) is coming to an end in October. We are also thinking of not remortgaging, but staying on their SVR after the current deal, as it is better than any other deals we can find at the moment.
There is one concern I have. We have another £10000 that we would like to pay into the mortgage to make repayments smaller. Would it be better to remortgage (pay another £999 for it and get worse deal than what we would be on otherwise) and during this process pay £10000 to the Nationwide and ask for mortgage £10000 smaller than it is at the moment or move to the SVR where we can overpay any amount and pay £10000 at that point. Does anyone know of any calculator where this could be checked?
Does this make sense?
Is it better to remortgage and get £10000 smaller mortgage or to just move to SVR and overpay £10000 at that point? Is the difference of these two calculations big and worth remortgaging? I don’t know how to calculate it, so any help in this direction would be greatly appreciated.
I believe that in the last month of the current mortgage contract we are allowed to overpay any amount without the penalty. Maybe we could pay £10000 than. That would give us smaller amount we need to pay off to the bank when we move to their SVR. We have around £155000 mortgage left.
Anyone knows of any online calculators or formulas where I could check this? Advice appreciated.
Thank you

Justicenpeace

My tracker deal ends at the end of this month and my mortgage is going automatically to Halifax's SVR (3.5%). I'm quite content because all the other so called deals (Halifax's and, it seems, most other lenders') involve substanital fees and, given my LTV, these are quite excessive. I can't see the saving when these are taken into account. Moreover, although my monthly outgoings will increase (approx £120 a month) after my discounted tracker ends, it does mean I will then be able to overpay without penality. This I intend to do (initially in a lump sum) very quickly after 1 Oct.