nationwide mortgage

thebeekeeper

i am with the nationwide & tied in until 2013 at 5.95% - pay around £400 per month & also overpay £500 per month which is their maximum

early redemtion is around £1400 & to buy into the TSB 2.99% deal it is around £1250

basically i have a mortgage of around £50,000

Is it worth changing to the TSB for the 2 years then onto their base at 2.5% (same as nationwide's!) ????? - looking to continue overpaying although TSB max is 10% overpayment

first time ever used a forum & would appreciate anybody's comments

at first glance is appears better to stay with nationwide & keep overpaying!

koexelek

Looks like best sticking with Nationwide.
You have quite a small mortgage, so the amount you would save in monthly interest by moving to Lloyds TSB would be unlikely to offset the early repayment charge to leave Nationwide

Joe_Bloggs

@thebeekeeper welcome to the forum.
MSE Martin has a Ditch My Fix calculator on this page that discusses fixed rates versus variable rates. Locoblade has written a calculating spread sheet that can compare two mortgages here. This works with Excel but you can get it to work with the calc part of openoffice.

The missing part of the puzzle is what fees will your new mortgage lender want for your business. There is also the uncertainty of what variable interest rates can be.

If you can afford to overpay by £500 a month then perhaps you can afford to look at an offset mortgage. You can even offset cash ISAs with some lenders. The bonus of an offset is that even if interest rates go up you are charged interest on the difference between your mortgage and your savings. Thus these mortgages are of little use if you have little savings when compared to your mortgage.

J_B.

thebeekeeper

many thanks will look into this

first time using forum's of any sort & very pleased

ta