Coming to end of fixed rate...

dcurzon

My fixed rate (6.4% nationwide) comes to an end in November, and will see me onto their SVR (currently less than my fixed rate). im paying 640p/m

Property value has increased from my purchase price of 103,500 to approx 114,000, my outstanding mortgage is 93,000

i also have an additional debt of 6800, which costs me £108p/m

is it possible that i can add my debt to the mortgage when/if i remortgage? i'm assuming my best option will probably be to remortgage to secure a better rate than nationwides SVR, but not having done this before im worried about making a costly error

Thrugelmir

If you fall back onto NW's BMR of 2.5% then you are in a fortunate position, and should think carely before remortgaging. You will be lucky to get a 2% interest rate above bank base in the future.

Better perhaps to use your reduced outgoings to repay your debts quicker.

dimbo61

You have a LTV of approx 85% so you wont get a better deal than the SVR of 2.5% but you mortgage payment will decrease so clear more of your other debts each month.
have a look on the debt free board as they can help you cut your spending and/or increase your income

tanith

Sorry to butt in this thread but could someone just confirm as I am in a similar position with Nationwide that my payment should reduce when the fixed rate ends (from 4.75 to SVR) in Jan 2011? If that is so then can I just keep the payments as they are thus clearing the mortgage quicker?..

TrickyDicky101

I came off my fix with Nationwide in August having been overpaying for the past 3 years. I just make an additional payment through internet banking each month to top up the repayments that Nationwide itself takes.

Thrugelmir

tanith wrote: »

Sorry to butt in this thread but could someone just confirm as I am in a similar position with Nationwide that my payment should reduce when the fixed rate ends (from 4.75 to SVR) in Jan 2011? If that is so then can I just keep the payments as they are thus clearing the mortgage quicker?..

Depends when you started your fixed rate period. As to what level of SVR you drop back onto.

Providing your mortgage terms allow, yes you could continue to repay at the same level.

dcurzon

i received a letter from NW recently, i think it said i would revert to SVR of 3.4% iirc

tanith

Thrugelmir wrote: »

Depends when you started your fixed rate period. As to what level of SVR you drop back onto.

Providing your mortgage terms allow, yes you could continue to repay at the same level.

So it won't drop to the rate they quote now then? We have been fixed for 5yrs , I guess I'll phone them and ask the relevent questions...

Thrugelmir

tanith wrote: »

So it won't drop to the rate they quote now then? We have been fixed for 5yrs , I guess I'll phone them and ask the relevent questions...

You'll benefit from the lower SVR rate.

jsaver

Hi - I am in a similar position. I have a 5 year fixed NW mortgage with ~ 75K outstanding; the fixed term will come to an end in April. The interest rate is 4.76%.

Am I to assume that I would then revert to the 2.5% SVR? My monthly repayment is £576, on top of which I pay £500 currently. Will I still be permitted to pay off this amount monthly?

As we have ~ £20K of savings I had been considering an offset, but depending on how the NW numbers stack up, I may have to reconsider.

Any thoughts or advice would be very welcome! Thanks!