Mortgage Advice Please!! Nationwide wont give me a fixed rate!!

simonr101

Hello

Within the last few months my first mortgage (3yr fixed rate mortgage) of 6.4% ended so i went onto Nationwides Standard rate of 2.5%. This has meant my monthly payments dropped from £464 to £297. This has allowed me to use the money i save to pay off other debts. I am still paying these off.

I phoned up Nationwide to try and find if they had any information on fixed deals but was told that as my LTV was over 85% they could not offer me any deals. Current house value £84975 (50% shared ownership) amount on mortgage remaining is £76443

My worry now is if interest rates go above 4.5% (making nationwides rate 6.5%) i would not be able to afford my mortgage payments.:eek:

Should I now be looking at remortgage deals? With my other debts and no savings to be overpaying on my existing rate is not really an option

Any help would be greatfully received!!

beachie

I am in the same position really but have even less equity (possibly negative) than you.

You say you wouldn't be able to afford nationwide rates of 6.5% but that is only 0.1% off what you have been paying.

While I am overpaying I am a little nervous of interest rate rises but at the moment there current thinking is that they won't rise dramatically (if at all) in 2011. This of course does not stop the bank raising them in the meantime.

Even when they do rise, they might only be 2% by the end of 2012 (although this would mean a variable rate of 6% for me if the bank passes it on).

Every month is a waiting game to

- See if interest rates rise.
- Overpay a little although I can't afford very much.

I am pretty scared about it all to be honest. Getting to 85% would mean paying off another 7.5k but until I finish paying off other debts I can only overpay by around £40 a month (total of £200 off the capital).

beecher2

You need to pay off £4,000 before you can remortgage. Once your debts are paid off, throw everything at the mortgage (or save it if you can get more than 2.5% after tax). Save £200/month plus whatever you were previously paying towards your debts and you'll get there before you know it. Debt Free Wannabee can help you with your budget - post a Statement of Affairs on there and they'll help you save money.

dimbo61

If the BOE base rate goes above 4.5% / 5% the S--T will hit the fan for hundred of thousands of home owners all over the country.
Stick on the BMR of 2.5% and clear all your debts then OVERPAY big style