nationwide 10yr fixed?

clarew

:confused: I have been a real egg head! Our 3 year deal with halifax is up at end of this month i think/early sept. I am now in a panic and realise we will be stung with variable rate, until we organise a remortgage.
Having been looking at nationwide 10yr fix, any ideas if any good?

circumstances are thus: property worth £300k, mortgage outstanding £170k (22years remaining).
Current annual income 44k pretax etc.
2 children 2yr, 4yr huuby and i just turning 30yr (so unfortunately lots more working life ahead of us!)

ideally we may like to have another child in next 2-3 years and to move to out of local area within next 5 years, thereby reducing mortgage. . Liked the idea of fixed/capped rates for the security they offer as mortgage amount is fairly hefty. I am thinking 10years security and it looks like the mortgage is portable, so should be ok to move. Also am hopeful that as kids get bigger and mortgage smaller, should be able to pay some amounts of mortgage earlier (mortgage pig, i'm coming to get ya!)

Any pearls of wisdom from you mser's?:A
Thanks.

ps-never remortgaged before, just moved and started anew last time...how long approx to complete the process.

tonydee

I'm currently in the process of fixing for 10 years with Nationwide and have been very pleased with their service to date.

One thing about the mortgage being portable, it is but this does not guarantee you being able to move. If you require more money for the new property then you'll re-mortgage and Nationwide are in their rights to decline if you don't meet their criteria.

That a side I think it's a great deal, with a great lender who are literally "nationwide" so you're able to pop along to the local branch at anytime.

p.s 4 to 8 weeks to complete the process

brannyrhino_2

see Leeds Building Society thread below

regularsaver1

whats the rate they are offering and the arrangement fees?

someone told me they are charging fees in excess of £1000 at present?

MarkyMarkD

tonydee wrote:

One thing about the mortgage being portable, it is but this does not guarantee you being able to move. If you require more money for the new property then you'll re-mortgage and Nationwide are in their rights to decline if you don't meet their criteria.

Even if you want to borrow exactly the same amount, or less, there's no guarantee of acceptance. All lenders underwrite from scratch on a house move, whether you are porting your existing mortgage or not. So if your income has fallen, or they don't like your new house, you might be forced to remortgage elsewhere and to pay the redemption penalties.

clarew

thanks everyone. So maybe wiser for me to go for 5yr deal, then move, rather than risk it not being portable. Certainly will not up the mortgage if moving-would be hoping to decrease it if anything. Thanks

regularsaver1

worth considering existing lender for comparison and check if nationwide are about to increase rates bearing in mind the BOE increase yesterday. Double check those fees on your KFI and the administration fees appropriate for leaving your existing lender

tonydee

Fee's are £399 and admin of £99. Rate is currently @ 5.18%

regularsaver1

plus £225 I have just seen on a site to redeem Halifax mortgage


not sure where my friend got £1000 fee from - maybe they meant total for all fees

dwsjarcmcd

clarew wrote:

thanks everyone. So maybe wiser for me to go for 5yr deal, then move, rather than risk it not being portable. Certainly will not up the mortgage if moving-would be hoping to decrease it if anything. Thanks

clarew
Whether you opt for a 5 or 10 year fix is up to you and your preferences. Regarding the issue of porting and underwriting, yes it is right that lenders underwrite again at that time, but in reality that is no different to the lender you are remortgaging to (except you don't have the hassle or fees to pay) Also most lenders will look favourabily at existing customers, who have a good history with them when they move house.

I took from your OP that you may be 'downsizing' mortgage in the future, if so you would need to be aware that you would pay redemtion fees on the balance of the loan you didn't port

tonydee

Forgot to mention that when it comes to re-mortgaging, Nationwide offer their existing customers the same deals as new customers. Something many other lenders could learn from.