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Nationwide 5 yr fix @ 4.69% coming to an end in July 2011
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DB31
Posts: 10 Forumite
I have recently received advice from a mortgage advisor to take out another 5 yr fixed deal again with Nationwide at around the same interest rate dependent on LTV, if over 70% may not even get the 4.69% I am currently on.
My hunch is to sit tight and to drop on to the base rate currently 2.5% but continue paying per month what we are now thus overpaying. That said we have 3 interest rate decisions prior to coming out of our current deal in July.
My worry is that if rates go up quickly the fixed rate deals available will be high!
What would you do?
My hunch is to sit tight and to drop on to the base rate currently 2.5% but continue paying per month what we are now thus overpaying. That said we have 3 interest rate decisions prior to coming out of our current deal in July.
My worry is that if rates go up quickly the fixed rate deals available will be high!
What would you do?
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Comments
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We are sitting quite nicely on our tracker mortgage, and overpaying.ORIGINAL MORTGAGE AMOUNT £106,454.00 (Started Sept 2007)
NOV 2021 O/S AMOUNT £1,694.41 OUR DEBT REDUCED BY £104,759.59 by std regular, over-payments & off-setting.
BofE +0.19% Tracker Repayment Offset Mortgage Discounted Sept 07-10 then increased to BofE +0.62% until 20270 -
Overpay as you suggest.
BOE base will need to increase by 2.25% for you to be worse off than the fixed rate on offer. In the meantime your capital balance owing is reducing.0 -
We are sitting quite nicely on our tracker mortgage, and overpaying (sorry to copy post 2 verbatim)Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
Thrugelmir wrote: »Overpay as you suggest.
BOE base will need to increase by 2.25% for you to be worse off than the fixed rate on offer. In the meantime your capital balance owing is reducing.
I second that - unless you can earn more than 2.5% after tax by saving the would-be overpayments.
And as well as base rates rising by 2.25%, Nationwide's BMR would need to track any rise in the base rate. This is quite likely but not guaranteed.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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