For those on Nationwide’s 2.5 SVR

shane42

why this thread?
is NW changing its rates ? has the base rate gone up?

joebmc

Thrugelmir wrote: »

Why do you want to come off this?

Not sure, just wondering what others on this great rate (for now) are planning.

shane42 wrote: »

why this thread?
is NW changing its rates ? has the base rate gone up?

Neither at the Mo.

I’m just curious what others are expecting to do who are on this rate.

I have been on the 2.5 since around last June and have keep my payments the same as the fix I came off of (overpaying about £200 per month).

I expect my LTV to be around 60-65% so am confident I can get another good deal but would need the BoE base rate to go up to around 3% to match any decent longish fixed rate (they seem to be around 5-6% at the moment).

Thrugelmir

joebmc wrote: »

Not sure, just wondering what others on this great rate (for now) are planning.

Once you come off this rate you are unlikely ever to get it again. So you need to weigh up short term benefits of fixing to long term of staying variable on this rate.

Maintaining your overpayments, even as rates each upwards to repay your capital debt quicker.

As your capital debt reduces the impact of rising rates reduces. As more and more of each monthly repayment pays capital not interest.

rharwin

We have been on the rate since last October and have taken the opportunity of paying around £3000 off the mortgage and have also concentrated on clearing credit card debts. These should be cleared in 3 months and then we will concentrate on overpaying.

We were previously on a fixed rate of 6.08% so base rates would need to go up a considerable amount for us to be worse off.

We are very happy to stay on this rate and am enjoying the extra disposable income

[Deleted User]

I will be staying on the BMR for the next 16 years. Because my mortgage is now below £25K there is no possibility or likely reason for moving in the future.

samnorris2

Hi Joe,
Last yeear when I was coming off the 6.09% fix onto the 2.5% rate I had a plan to pay off my mortgage ~£90 within about 7 years with all the overpayments I could make.
I was thinking of fixing for 3 years and at the time, with the 3 year fixes that were available, rates could go up 4% (up to 5.5%) and I would still be better off. This was assuming a tapered increase from from April-10.

I wasn't aware, as others have mentioned, that NW have pulled some of the flexible benefits i.e. payment breaks etc. Think I'm going to sit this SVR out at least until I get the mortgage down below a 50% LTV.

Best of luck whatever way you go.

[Deleted User]

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.

When did they do this? Is it only relating to people on high LTVs? I made a massive overpayment to Nationwide in February after speaking to them on the phone and being told that I could withdraw my overpayments whenever I wanted. My LTV is now around 10%.

VIGILANT22

Borrow back For mortgages reserved on or before 3rd March 2010 you can apply to borrow back a lump sum from your overpayment reserve. Any mortgages reserved after this date will no longer include this facility. http://www.nationwide.co.uk/mortgages/calculators/mortgageglossaryofterms.htm#b

Gorgeous_George

Don't feel guilty about your holidays.

I've never heard of anybody's final words being 'I wish I'd had less holidays' or 'I wish I'd overpaid my mortgage'. The graveyard is full of mortgage-free corpses.

Life is for living.

GG

MBM

Well said George.