For those on Nationwide’s 2.5 SVR

joebmc

When are you going to look to come of this, Obviously when rates rise but by how much will push you start to think about shopping around?

mambo69

At the moment it would have to rise by 1 point for me to start looking around, but my mortgage is very small so the rise would have no major impact

happybroker

That's going to depend largely on people's loan to value ratio, loan amount and monthly budget I would imagine/ hope. Oh and their attitude to risk of course.

Thrugelmir

joebmc wrote: »

When are you going to look to come of this, Obviously when rates rise but by how much will push you start to think about shopping around?

Why do you want to come off this?

SimbaSimon

We came off our fixed just as rates started to go lower. Originally our mortgage was predicted to go up about £100, instead it went down by over £100. Good times!

I'm fairly open to risk, this year certainly doesn't look like rates are going anywhere fast. Also they've removed the option where you can get overpayments back and removed the floor so we'd stand to loose a lot if we changed. If we do change it'll have to be with Nationwide again, we're at 90% LTV (started at 95%) and given houses prices have dropped we really have little/no equity to swap companies.

In the mean time, we've had a good couple of holidays out of the money saved, and now trying to overpay to get the LTV down ready for when we remortgage in 2011/2012 (unless rates stay low for longer). I'll probably think about fixing when rates rise 2%+, even if they raised rates 2%, our mortgage would still only be 4.5% which I'm happy with.

Thrugelmir

SimbaK2K wrote: »

In the mean time, we've had a good couple of holidays out of the money saved, and now trying to overpay to get the LTV down ready for when we remortgage in 2011/2012 (unless rates stay low for longer). I'll probably think about fixing when rates rise 2%+, even if they raised rates 2%, our mortgage would still only be 4.5% which I'm happy with.

Only time will tell if its saved. Once mortgage rates rise to normal levels again say 6% - 7%. Those holidays will be a distant memory.

In earlier years of paying a mortgage, little goes to reducing capital owed. Accelerating repayment in early years can yield long term benefits and real savings. Particularly as lower LTV's offer better rates.

JimBoB_5

SimbaK2K wrote: »

Also they've removed the option where you can get overpayments back and removed the floor so we'd stand to loose a lot if we changed.

They've also removed the option for payment holidays, making the 2%+BOE a good rate to stay with.

poppy10_2

SimbaK2K wrote: »

In the mean time, we've had a good couple of holidays out of the money saved.

You haven't saved any money. What you've done is chosen not to pay off your debts but instead to use that money to splash out on holidays. With your LTV already looking precarious, I hope the memory of those holidays comforts you when you are stuck deep in negative equity.

SimbaSimon

poppy10 wrote: »

You haven't saved any money. What you've done is chosen not to pay off your debts but instead to use that money to splash out on holidays. With your LTV already looking precarious, I hope the memory of those holidays comforts you when you are stuck deep in negative equity.

We'd earnt it so why not. We work hard and if I want a holiday for a few weeks then I'll have one . I wasn't borrowing anyones money to pay for the holidays just making the most of the low interest rates and enjoying myself for a few weeks. We overpayed by £500 last year on top of the holidays and plan to overpay a lot more this year. LTV isn't that important as we don't plan on moving as its perfect and its a home to us not a investment.

SimbaSimon

Thrugelmir wrote: »

Only time will tell if its saved. Once mortgage rates rise to normal levels again say 6% - 7%. Those holidays will be a distant memory.

In earlier years of paying a mortgage, little goes to reducing capital owed. Accelerating repayment in early years can yield long term benefits and real savings. Particularly as lower LTV's offer better rates.

The holidays won't be a distant memory. I've got tons of amazing photos of the Californian coast and we got married in Las Vegas, I certainly hope I don't forget that since it'll be a yearly anniversary. :rotfl:

beecher2

SimbaK2K wrote: »

LTV isn't that important as we don't plan on moving as its perfect and its a home to us not a investment.

Just try you get your LTV below 90% as you won't be able to get another deal otherwise. Fine when the SVR is at 2.5%, not so fine when SVR reverts to norm.