Is it worth sticking with the SVR

RECS

Hi - I have a mortgage that I am paying off - there is about 25k left and a term of 7 years in theory. I am on a deal at the mo which runs out at the end of September and I am struggling to find one that has no arrangement fee to make it worth while moving either lender (with the Nationwide) or internally in the Nationwide. I over pay by 500 quid a month at the mo as a saving really and would like to keep doing that whilst I can.

Any views on whether or not I should just stick with the SVR whilst rates are low 3.99 at the moment in the Nationwide ??

Interested in any views. regards and thanks

co123456

Does your mortgage have the ability to over pay, and borrow back without penalty? If so, I would suggest considering stoozing your way to being mortgage free. Not everyone's cup of tea, but if you've a decent credit rating and handle the admin, worth a thought.

Rosemary_Jane

Hi RECS,

I would consider carefully whether it is best to stay with Nationwide. All their mortgage deals which started more than a year or so ago have a guaranteed move onto their old standard rate which is 2% above base rate.

The newer deals have had that written out of their conditions. Currently I am paying 2.5%, having finished my fixed rate at the end of June, which is fantastic, considering it is ultraflexible and there was no arrangement fee, and no paperwork.

Also, many deals require a larger loan than £25K.

All the best,
Rosemary

Kaz2904

You're in a similar position to where I will be next summer. We will owe about £34000 when we come to review the mortgage. The only thing I can suggest is that you run your figures through a recalculator such as www.whatsthecost.com to get some ideas on timescales.
I would also keep a very close eye on the interest rates during your final period just in case they start ramping up.

SimbaSimon

Nationwide has a BMR and SVR. You will be going onto the SVR if you took your mortgage out 9 months+ ago which is currently 2.5%! Recent mortgage deals with Nationwide go on the BMR which is higher.

Personally, interest rates are tipped to stay low until next year at least. So I'm sticking for now.

dimbo61

First you need to find out from Nationwide what your mortgage reverts to at the end of the fix!
If its the BMR at 2.5% or the SVR at 3.99% it may not be worth you moving lender !
Check if there is any limit to overpayments once your current deal ends.
If you have the money to pay your existing mortgage payment and overpay by £500 a month on top you could clear the mortgage in 3 years without spending any money on fees for a new deal.
GOOD LUCK

StuartGMC

Certainly I would agree that many people need to think about their "final" lender choice at the time they owe about £35k as the fees represent a significant % of the loan to move. As Dimbo notes, running the calcs could show it best to OP and not move.

May also be worth you looking at offset but only if the fees are acceptable, especially if you haven't got a good emergency fund saved etc. That way you can be building savings and the sum upon which you pay interest is lower and becomes less as you move forward and rates may move up (late 2010??) but the actual impact per month will be less due to offset. Remember some providers let you offset Cash ISAs.

Best wishes on this, and on the final furlong to the MFD!