Deal ending.. BMR or New Deal

Mum22

Hi

Just trying to think ahead alittle.

Current mortgage balance £143000 House value £180000.

Our 5yr fixed (4.69 Nationwide), finishes in June. Then going onto their BMR (2% above BoE) So currently 2.5%.

Obviously no one can predict the future, but at the moment the BMR seems a good option as if we change to any other deal, at the end of it we will then revert to the SMR which is higher than the BMR.

We can afford to over pay each month for the next 2 years around £600, do we pay the mortgage of with this each month whilst the rates are lower or put it into savings each month ( and earn interest...Isa) and pay it of in one lump sum after the 2years...

Any advice please.

opinions4u

BMR is the option I'd choose.

I'd probably overpay rather than save, although if you can get more than 2.5% after tax saving would have a marginal advantage.

dimbo61

I am going to do a bit of guess work ? If you paid £180K for the property and have paid off £19K in the last 5 years.
Your LTV on the nationwide website is just under 80% and they could offer you a 2 year fix at 4.19%, 3 year fix at 4.89% and a 5 year fix at 5.49%
So the BMR at 2% above base is a very good deal BUT how long are rates going to stay at 0.5% thats the $64,000 question.
If you are gong to stay on the BMR I would split the overpayments 50/50 and OP half and save half in cash ISA,s
Try and get your LTV below 75% and see what deals you can get then

Mum22

Thank you for the replies

Thats an idea to do 50/50.. At least that way we could have some savings if BMR rises dramatically..

Will pass comments onto husband when he returns from 6mths away.. 10 days to go..

Not that I am counting....