Have i missed something?

JMB1970

Hi, we are coming to the end of a variable rate traker with the Nationwide in January when our mortgage will revert to the Base Mortgage rate of 2.50%, we are currently only paying 0.5%

I have had a look at changing lenders but without paying a stupidly high fee I dont think its worth it and could end up with a much higher rate - unless of course I have completley missunderstood how it all works and just confussed myself?!

thanks

Jenny

Mathsguy

Jenny,

You're right, you will struggle to find anything comparable to the Nationwide standard variable rate (one of the best in the market) without having to pay big arrangement fees etc (which then increase the APR).

The only advantage to getting a new deal elsewhere is if you are worried about the rate increasing further when the Bank of England raises the base rate, which will mean your variable rate will also go up. If this is the case, you may want to look at getting a fixed rate, where you may be paying more now, but you may end up paying less later than if you stick with the nationwide SVR.

Most analysts expect that the Bank of England base rate will stay low until atleast the end of next year but they have been wrong before.

I am not a financial advisor, you should seek professional advice before maing a decision etc etc.

R.

JMB1970

Thanks, thats what i thought, it was my husband who made me think I had misunderstood!

Jenny

dimbo61

so the bad news is that your mortgage rate is going to jump up by 2% and the good news is that even 2.5% is a very good mortgage rate.
You dont give your LTV ( loan to value) but unless you have 25/40% of your property as equity then you wont find a better rate.
If you do consider a fix think long term 5 years +

JMB1970

our LTV isnt too bad - dont know what the value of the house is now, but we paid £290,000 in November 2006 and our mortgage is just under £130,000.
thanks

Jenny