Mortage deal running out, what should we do???

[Deleted User]

We secured our 2 year fixed rate 2 years ago the day before the interest rates nosedived ( typical ) anyway our deals running out now, we're comfortable paying our existing deal and next year i'm getting a 40% uplift in wages for 3 years ( secondment deal at work ) i want to carry on paying the same amount of money we are paying now, prob about 400-500 more than if we drop to our nationwide variable rate, that way we are making massive overpayments on our house, trying to work out whether we'd be better off just dropping onto nationwides variable base rate or get tied in to another 2/3 or 4 year deal.....
I do like the sound of the cheap rate then anything on top goes into overpayments, what do you's think????
Knowing my luck as proven 2 years ago the rates will go up the day our deal finishes....

Thrugelmir

If you are a financial position to make sizable overpayments. Then remaining on the SVR is the better option. There'll never be another opportunity like this to clear the capital balance on your mortgage.

Even as rates rise, at some point in the future, you will be in a much better position. As the capital owed will be so much lower resulting in lower interest charges.

[Deleted User]

Gotta say i'm disappointed with the SVR at Nationwide at the moment i have'nt really checked until now and its 2% more than base rate, ah well still a good time to get on it, early November and start with those big overpayments, we'll be saving about £450 per month and with my wage increase next year, we could realistically over pay be close to £1000 per month for the next few years if rates stayed as they are and work is ok for us both.

koexelek

Deleted_User wrote: »

Gotta say i'm disappointed with the SVR at Nationwide at the moment i have'nt really checked until now and its 2% more than base rate

:eek:

You don't know how lucky you are.

The Nationwide 2.5% SVR is one of the best going. As a comparison, Abbey's SVR is 4.24%

The Nationwide SVR is hurting them big time, and they are trying anything they can ( including some very underhand tactics) to get borrowers of of it.
That tells you how good it is.

Thrugelmir

Deleted_User wrote: »

Gotta say i'm disappointed with the SVR at Nationwide at the moment i have'nt really checked until now and its 2% more than base rate,

What do expect it to drop to?

2% above base is the historic norm for SVR's.

[Deleted User]

Deleted_User wrote: »

Gotta say i'm disappointed with the SVR at Nationwide at the moment i have'nt really checked until now and its 2% more than base rate, ah well still a good time to get on it, early November and start with those big overpayments, we'll be saving about £450 per month and with my wage increase next year, we could realistically over pay be close to £1000 per month for the next few years if rates stayed as they are and work is ok for us both.

2.5% is a great rate. Unless you were hoping to borrow directly from the Bank of England?

Check with Nationwide what you can overpay. I believe you can only overpay a max of £500 (or actually 499) before they start reducing your next month's payments to compensate.

[Deleted User]

i've actually checked around and yes it is a good rate tbh, my mistake, it says if i agreed my deal before middle of 2009 then i'll go down to 2.5%, also says no limit to overpayments whilist on the svr, thats good for me, would love to be able to get 2-3 years big overpayments on the mortage, now just waiting for the invetiable post and calls telling me to switch to a new deal, sod that i'm gonna stay on the svr whilist its low then

dimbo61

Very good idea overpay by every penny you can afford over the next 3 years you are on secondment and see where you are in 2/3 years.