stiffed by the nationwide?

mambo69

I Have 33,600 over 13 years 7 months on the standard 2.5% rate, so looking to switch to the produce seen on the website, 3.39% fixed for 2 years.

However rang them up and was offered 3.89, which i cant find anywhere on their website as a rate. Each month its around £10 more, so over 24 months I would pay them £240 extra

Not a huge amount, but why do I feel like I am being ripped off?

somethingcorporate

Did you ask them about the rate on the website? Sure it isn't a specific one for flex account customers or some other obscure criteria you need to fulfil?

mambo69

my illustation just came though so looking now, reading on the web the 3.39% is for people switching from the 2.5% rate

checking the website it states to qualify i must have
Have paid £750 or more per month (excluding internal transfers) into your FlexAccount

TrickyDicky101

If you take another fix with Nationwide you will lose the benefit of the BMR rate (BoE Base Rate + 2% max) forever. Their new SMR rate is 3.99% currently and is not restricted by to a specific ceiling over Boe BR. Given it is only 2 years, you would need the BoE BR to increase by well over 1% in the forthcoming 2 years for the fix to save you money. I, personally, can't see the point. Maybe if it was a longer fix, but not just 2 years.

mambo69

Due to the way Nationwide do the further advance I have 3 accounts, 1 is around 2100 at 2.5% and one lifetime tracker, 10800 at 4.39% so I was thinking about just doing the 5 year fixed at HSBC and putting all the eggs into 1 basket, then making overpayments of any small saving

I am turning off the nationwide, because my 2 further advance are below 25k I would need to pay to fix or switch and they will not even out the 2 @ 2.5% together and so reduce adminstration for themselves, they seem very inflexible

dimbo61

Sorry you have now changed from a 2 year fix with Nationwide to a 5 year fix with HSBC!
Now as you total debt is £33K approx any fees or costs to move lenders will cost you more than staying with Nationwide and overpaying!
start off with the most expensive part and overpay as much as you are allowed then OP on the second most expensive part OR build up savings in cash ISA,s paying more than 3% tax free.
When you fix comes to an end then pay a lump sum off.
Solictors, surveys, searches, exit fees, set up fees it goes on and on

KarenBB

mambo69 wrote: »

Due to the way Nationwide do the further advance I have 3 accounts, 1 is around 2100 at 2.5% and one lifetime tracker, 10800 at 4.39% so I was thinking about just doing the 5 year fixed at HSBC and putting all the eggs into 1 basket, then making overpayments of any small saving

I am turning off the nationwide, because my 2 further advance are below 25k I would need to pay to fix or switch and they will not even out the 2 @ 2.5% together and so reduce adminstration for themselves, they seem very inflexible

I'm pretty sure you that if an account has a balance of less than £25k the only rates are one with a fee but if you have a number of accounts and the combined total is more than £25k you can have one of the fee free products but only if you arrange the switch in branch, you can't do it on the phone. You'd still have 2 accounts but they'd be on the same rate. A friend did this recently, bit of a pain having to go to the branch but she got the rate she wanted.

mambo69

dimbo61 wrote: »

Sorry you have now changed from a 2 year fix with Nationwide to a 5 year fix with HSBC!
Now as you total debt is £33K approx any fees or costs to move lenders will cost you more than staying with Nationwide and overpaying!
start off with the most expensive part and overpay as much as you are allowed then OP on the second most expensive part OR build up savings in cash ISA,s paying more than 3% tax free.
When you fix comes to an end then pay a lump sum off.
Solictors, surveys, searches, exit fees, set up fees it goes on and on

there are no fees associated with the HSBC mortgage.

handytips

Best of luck with HSBC