Nationwide fixed rate ending June

littlechezza

Hi, we have a fixed rate which we have had for 5 years ending in June, rat is currently 5.06 and we are with Nationwide this will drop to 2.5%:T if base rate stays the same, I'm not asking for advice on what to do as I think with a huge overdraft:( to pay off, it is obvious we need to go on their SVR for as long as possible, just that if rates started to rise (and again they would have to rise to 3% for us to be in a worse position) how quickly can we get a fixed rate sorted with Nationwide. I'm kind of hoping that we can stay on the SVR till at least the end of the year and then pick a fixed rate quickly if needed.
Thanks

Gorgeous_George

It's a game of poker.

Nationwide's BMR is effectively a capped tracker - capped at BofE +2%. Fixed rates are unlikley to be available at BofE +2% anytime soon. I think you should hold your cards at present.

You need to time your fix right to benefit. But who knows if/when or how quickly rates will rise. They may not rise for ten years - they may rise next week.

The best that those of us without crystal balls can do is make a best guess. You should be able to fix a mortgage in a few weeks but, it may never be obvious that you should so.

Essentially, by the time you know you should fix, it will be too late. You have to fix when you think you should fix - and be prepared to be wrong.

Once again, I think Nationwide's BMR is a cracking product and I'd be happy to stay with it. IF rates rise enough to make it a bad choice, your mortgage will be the least if your worries - IMHO of course.

GG

magpiecottage

I looked at this issue a couple of months ago. In that case, the borrowers concerned came off onto the BMR and will stay on it for life but if they subsequently lock into a fixed rate then when that ends they will go onto the SVR which does not have the 2% over Base cap.

So check what will happen at the end of any new deal before committing yourself.

littlechezza

Thank you, I know they will rise at some point but it will be nice if they stay the way they are for the rest of the year, all the expert opinions don't seem to think they will rise before the end of the year but then the titanic wasn't supposed to sink!!!!