Are there other ways out of fixed rate deals?

mortgageman1_2

Hi.

I'm currently with Nationwide (previously Portman) for my mortgage on a 5-year fixed rate from Jan 2007 and am looking to move home, with the deal porting with me. I've agreed extra borrowing and am planning on getting a 2-year fix so that my two mortgages with them coincide once again in early 2012 to allow me to shop around a bit more again.

However, I was starting to think about taking the security that a 5-year fix offers me on the existing amount and was wondering if you think Nationwide would be likely to have ways round doing this other than me needing to pay a hefty ERC? If, for example, I took a slightly higher rate on the main borrowing (which I think could well be a better deal for me in the medium-term rather than needing to remortgage on the full amount in 2012 once interest rates rise again), would they be likely to oblige do you think? I'm guessing not, but thought I'd ask the question nonetheless.

I hope this makes sense! Any advice (no matter how harsh!) welcomed.

Cheers.

Pincher

Some lenders are keen to move people off the old contracts with the guaranteed SVR at the end of the fixed period, and are waiving the ERC to encourage this. Nationwide's old SVR is very generous, currently 2.5% payable. To get the equivalent BOE+2.0% Lifetime tracker now, you will need 60% LTV.

So the question is, if Nationwide waives the ERC, is it for your benefit, or theirs?