Can I change my mortgage product to another with nationwide?

woohoo

Hi,

just a quick query - if anyone can advise I would be very grateful.

We have a fixed rate 6.09% deal with Nationwide due to end on 31 Aug 2012. it was a 5 year fix. When the mortgage rates came down I phoned Nationwide and asked them whether I could pay the penalty and change to a more competitive product. They said no. I didn't really give it any more thought as I could not be bothered with changing provider etc. However, now I am thinking about this again and how much extra we must be paying than we could be! Is this right that I could not stay with nationwide and pay the exit penalty and change deal? I am hoping they have changed the rules since I asked!

Thanks for reading.

koexelek

No, they have not changed the rules.
Other lenders will let you buy out of the deal, but Nationwide won't.

If you want to get out of that Nationwide deal, you will have to pay the penalty and change lenders.

woohoo

Oh never mind! Thanks very much for taking the time to reply/

dimbo61

Nationwide do allow you to overpay by £500 a month and if you do overpay its like getting a savings rate of 6.09% TAX free and you also decrease your mortgage and therefore increase the equity in your home.
The less you owe the better deal you get next time!

Radionotme

I'm in a similar situation - mortgage due to last until September 2012, at a rate of 5.98%. Seemed a good deal at the time...

As has been said, the best thing to do is to overpay as much as possible. At least come 2012 you'll be on the BMR at a max of 2% above the base rate, and you're still allowed to take payment holidays or re-borrow the money you've overpaid should you need to (they've removed that facility for new borrowers).

So - who's going to bet on what interest rates will be in Aug/Sep 2012? Will they have shot up dramatically to curb hyper-inflation, or will they still be low to try and support an ever fragile economy?