Nationwide mortgage options

Agrajag

2.5 SVR is a bargain.

I am in the same position (tracker expiring next month) and went in to talk to them about it. Even with all the research I did , I had not gleaned that the SVR of 2.5 is capped at 2% above BoE rate. This works out (given the fees) as a better deal than any fixed term one (unless the BoE rate rises massively in the next 2 years, which I REALLY doubt)

The huge advantage of the svr is the lack of limitations. Yes they all over payments, and will allow you to take that money back out. I was over paying each month (interst only mortgage, with crap endowments to cover), so I now have a good set of 'savings' to call upon in emergency.

And if we are careful, overpaying as much as we can afford could pay off the morgage approx 5 years early (if current conidytiond were to stay the same - which obviously they will not) at no risk (always get money back out if we are in need)

belfastgirl23

From today's Guardian article on quantitative easing

Does the decision tell us anything about where interest rates are headed?
Yes: it suggests the MPC is going to take a cautious approach to tightening policy, and is likely to keep rates low, at the current 0.5%, for a long time: perhaps a year or more. Even when the recession comes to an end, the Treasury is likely to start cutting back on public spending, or raising taxes, to get the government's finances back in order. Having less money to go around will depress economic growth, and the Bank is likely to have to keep rates lower to offset that effect.

http://www.guardian.co.uk/business/2009/aug/06/quantitative-easing-questions-and-answers

they are also saying there could be cheaper fixed rate mortgages to come

http://www.guardian.co.uk/business/2009/aug/06/quantitative-easing-mortgages

JimBoB_5

spdavies wrote: »

Option 3: 3 year tracker at 3.99% (3.49% above BOE) capped at 4.99% meaning monthly repayments of 650 to 726.

Don't forget that Nationwide themselves are banking that the BOE rate won't go any higher than 1.5% as they're capping their 3yr tracker at 4.99%. If this were correct (and Nationwide should be pretty good at predicting this kind of thing) then the svr would be at a maximum of ~3.5%. It's worth noting that they predicted the start of the interest rate downward turn back in late 2007. I booked my tracker days before Nationwide put their tracker rates up, the BOE lowered interest rates the following month.

Obviously even the experts can be wrong with this sort of thing, but I'm going to stick it out come November when my tracker rate ends as well. It's a steaming good rate and I'll be overpaying like a crazy person until it ends:D

2Sheds

smk77 wrote: »

The SVR ( or BMR for Nationwide mortgages) for most is no more than 2% above the base rate. So, nationwide SVR is currently as high as they can put it.

Mine finishes at the end of this month and I am sticking with the SVR. I got a letter through today telling me that my payments were going to be a few £ more than I had worked out using a few online calculators. I phoned up and explained this and was told the formula that they used. Using their formula I got the same as the online calculators. So, basically, the amount Nationwide stated on the letter was possibly incorrect. They are looking into it and will send out a letter with an adjusted figure or an explaination.

If anyone is coming to the end of their Nationwide mortgage then I suggest that you double check the figures. If they don't add up then either contact Nationwide and get an explaination or send me a PM in a week or so and I'll let you know what Nationwide's explaination is.

Had the same thing happen to us, their new figure is not the same as what I've worked it out as. We're got an appointment with the mortgage adviser next Monday, but I bet they haven't got a clue.

TheMiner

I'm in the same boat - it's great innit!! One thing to remember is that new mortgage rates you are looking at are based on the rate at which banks lend to each other (LIBOR), not the Bank of England base rate, and it is still coming down. I'd certainly stick with option one for at least six months, and overpay if you can afford to.