Advice Needed - Re-mortgage now or Wait?

tirosh

All,

My situation is this. I currently have an Interest Only Tracker Mortgage of (+0.64%) with the Nationwide. This is coming to an end at the end of October 2011. My LTV is around %50.

The question is should I look into switching to another deal now or wait until later on in the year? If the advise is to switch then what's the best sort of deals to consider?

Any help or advice will be greatly appreciated.

getmore4less

what rate does it change to in Oct?

shortchanged_2

That is a very good rate. I assume you have a repayment vehicle in situ for your mortgage capital.

tirosh

getmore4less wrote: »

what rate does it change to in Oct?

I suspect it will be their SMR (currently 3.99%).

tirosh

shortchanged wrote: »

That is a very good rate. I assume you have a repayment vehicle in situ for your mortgage capital.

Absolutely.

shortchanged_2

tirosh wrote: »

Absolutely.

Good to hear as loads don't.

Thrugelmir

tirosh wrote: »

I suspect it will be their SMR (currently 3.99%).

Check as the BMR is 1.49% better and fixed at 2% above base. So a real difference.

tirosh

Thrugelmir wrote: »

Check as the BMR is 1.49% better and fixed at 2% above base. So a real difference.

This is the sort of info I see:
Deal period Initial Followed Overall
rate by the!SMR, cost for
currently comparison
2 years 3.39% 3.99% 4.0% APR
2 years 3.79% 3.99% 4.0% APR
3 years 4.09% 3.99% 4.1% APR
5 years 4.69% 3.99% 4.5% APR

silverfoxuk

Thrugelmir wrote: »

Check as the BMR is 1.49% better and fixed at 2% above base. So a real difference.

Yup, check, check and check the Ts&Cs of your mortgage again re the rate you will go on to when your current fixed deal comes to an end.

Re the should i or shouldn't i, the economic news suggests higher BoE base rate one day (inflation soars) and no rate hike the next (unemployment rises, GDP falters).

So it's a really tricky call. This is particularly so if the rate you revert to on your Nationwide mortgage is BMR or SMR. The BMR rate (2% over base) is currently pretty good on most counts, unless you really really want to fix. Then it depends on your LTV. If that is low say sub 60% good rates (3.99% HSBC) are to be found.

tirosh

silverfoxuk wrote: »

Yup, check, check and check the Ts&Cs of your mortgage again re the rate you will go on to when your current fixed deal comes to an end.

Re the should i or shouldn't i, the economic news suggests higher BoE base rate one day (inflation soars) and no rate hike the next (unemployment rises, GDP falters).

So it's a really tricky call. This is particularly so if the rate you revert to on your Nationwide mortgage is BMR or SMR. The BMR rate (2% over base) is currently pretty good on most counts, unless you really really want to fix. Then it depends on your LTV. If that is low say sub 60% good rates (3.99% HSBC) are to be found.

Thanks, this is useful input.

vansell

Tirosh, I'm on a similar deal but I revert to the BMR in October. If I understand it correctly until the base rate rises to 2% I shouldn't be affected to much. After 2% I will start to pay more. Check your deeds as you may be the same. My understanding might be wrong but I am hanging onto this for as long as possible as I have been overpaying by £100 per month for nearly 3 years.