Nationwide re-morgaing question (SMR against BMR)

spennyb

Hello, Thanks in advance for any replies. Anyone have any ideas/feelings on nationwides SMR (standard mortgage rate) on how it is generated and why they have done it this way as this is the only thing which is currently making me not re-fix so I am unsure what to do really.

My situation is that my fixed rate with nation wide is due to end soon which means I will go onto their BMR which is 2% above the bank of england rate and will take my mortgage down down from 907 to 705.

I have allways fixed as you know where you are, but if I fix it means my mortgate will be 765 (extra cost for security) but when it ends I will go onto the SMR which is currently 3.99%. And they cannot or will not tell me how this calculated.

Thanks in advance,
S.

TrickyDicky101

It's not calculated using a fixed formula - it will be based on many things including BoE Base Rate at the time and Nationwide's perception of how competitive the rate is compared to other banks/building societies (as this will influence how many customers will stay on the rate vs how many will look to move to another provider). They have freedom to set it as they like. It won't be straightforward so I'm not suprised they can't provide you with any further details.

kingstreet

BMR is simply a variable rate over which they have control of the size and timing of changes.

Is the Nationwide's fix the only thing you've looked at? What about moving to another lender? If you're going to lose SVR, you might as well make sure you're getting the best deal you can...

spennyb

Thanks for the replies. I though that was the case. Will have to weigh up the pro and cons of fixing and not fixing with them and look else where also.

Thanks again,
S.