nationwide vs woolwich

moneysavingaddict07

Hi there,

I was wondering if anyone could give me some advise the woolwich lifetime tracker of 2.13% above the barclay’s base rates and the nationwide 2.24% 2 year tracker above the base rates.

The mortgage loan is 170,000 (65% of the house value), and I’m expected to switch to a better rate after two years if I was to go with the nationwide.

The cons for Woolwich is the higher upfront cost (£999 for arrangement fee, valuation fee £385, completion fee £35 = £1,419) vs nationwide of £940. So £479 difference.
Repayment Charge is higher £275 vs £90.

Pros for Woolwich – if rates move on, or if barclays’ decided to move their base rates up, it means the tracker rates are still very competitive. I did a search on remortgaging and only the A&L showed up as better than the rate woolwich is offering for life.
There is more flexibility if we want to overpay (10% vs £500 per month with nationwide)

Cons for nationwide – the monthly % rates for the first 2 years as well as the SVR are higher than the woolwich

pros for Nationwide – Cheaper for the first two years with you factor in arrangement fees but switching would cost us an arrangement fee.

Can anyone think of any other reason why I should go with the woolwich or the higher nationwide 2 year tracker rate?

Many Thanks,

Joe_Bloggs

The Nationwide do a capped tracker rate. That is it will track with the Bank of England Base (plus margin) and then be limited/fixed at the capped rate.
J_B.