Fixed deal ending 30 Sept - NW BMR or a new deal?

ensbd

Hi!

We bought our first house three years ago, and we went fixed with Nationwide for three years on 5.13%. Now, the three years are almost up and we're wondering what to do -- go on to the Nationwide Basic Mortgage Rate (BMR) or try and get a new deal.

As I see it, there are the following options:

1. Just roll on to the BMR. The current BMR rate is 2.5%, which is pretty good, but comes with the caveat that it's variable. But in addition, the Nationwide says this about the BMR:
> If you choose to switch from the BMR to a new Nationwide mortgage
> product, it will not be possible to switch back to the BMR.

Does this mean that this deal is so good that Nationwide have realised this and closed it to people taking out new deals now?

2. Get a new fixed deal. This is interesting -- on the NW website, they currently have pretty competitive rates, but if I go to the "Switching your deal" for existing customers, and use their Payment calculator, these deals aren't available, and the interest rates are much larger...

3. Go for a tracker.

I'm pretty uninitiated with all this, so any help/advice would be welcome. What are others in the same situation doing? The way I see it, is that option 1 is the most attractive, but the current base rate is only going to go up, so perhaps a fixed would be better in the long term.

Thanks in advance to anyone who could give us some pointers!

bootman

I would go onto the BMR rate 2.5% is really good. I did this when my fixed ended with them and have no intention of fixing again for the time being unless rates start to go the other way. even if they do, it's quick to swap to another product the Nationwide.

Also now you are off the fixed, any spare money you have you can throw at the mortgage to bring the amount down as you are no longer restricted to just £500 overpayment.

TheMiner

As bootman says - the NW BMR is a very nice deal. Keep one eye on the base rate (which a lot of pepole are saying is not going to go up for another year), whilst getting your LTV down by overpaying for when you do need to remortgage. A nice situation to be in

2Sheds

Once you go to another Nationwide deal you can never go back to the BMR only the new SMR which is 3.99% minimum

samnorris2

Hey ensbd, I'm in the same situation as you. Just come of a 6.09% fixed rate and dropped onto the 2.5% rate at the end of August. I'm riding it out for a year to see what happens and overpaying the balance. It's allowing me to overpay an extra £200 a month, on top of the £500 I was paying before. I worked out that even if the rate goes up 4% in the next two years I'm still better on the BMR variable rate.
Depends on your circumstances of course but it's a great rate.