Nationwide invite us to fix but it costs £100s

tanith

We have a Nationwide fixed rate mortgage which reverts to base rate in Jan 2011 , we owe less than £19000 now and have less than 5yrs to run on the mortgage .
I believe the rate we are on is 4.75 but intend on keeping our payments as they are at present so we are overpaying .
My question is that Nationwide have invited us to fix again for the remainder of the term but its almost £1000 arrangement fee which seems a bit silly to me .... to pay out all that money when if we overpay its only going to be 3/4 yrs till we are mortgage free...

I am not the best at understanding these things so please someone tell me whether I have things correct?.. thanks

opinions4u

When you say base rate I assume you mean Nationwide's 2.5% rate.

Unless the fix is close to this, I'd stick with what you drop on to and overpay as planned.

(It isn't worth paying £1k fee on a £19k loan for such a short period, unless you anticpate a dramatic rocketing of rates in the near future).

tanith

Thats what I thought ....... thanks for that

TrickyDicky101

With less than 5 years remaining there is very little point fixing as the majority of the payments you make each month will be capital, not interest. Interest rates could rise substantially with only minimal effect on what you would pay. Save your money and stick with your variable rate.