Fixed Rate ends Sept- what deal now?

davidscot

Our current fixed rate with Nationwide ends Sept '11. We are currently on a rate of 5.45% paying £545p/m. If we move to the base rate, payments drop to £434p/m but we like the certainty of a fixed rate. So what do we do now? Do we stay on variable rate and let it ride for a bit or do we fix now?
Would say our LTV would be roughly 40%ish (160k to 70k loan)
Ideally would like to pay mortgage off sooner rather than the term left (13 years)
Any advice or tips would be appreciated here.
Thanks

Miss_J

Have you checked with your lender what new fixed rate they can offer you. Mine comes to and end at the end of August and my rate was 6.55% but my lender has offered me 2.79% for 2 years, which is cheaper than the SVR rate of 3.5% so I'm going to fix on the lower rate.

davidscot

Miss_J wrote: »

Have you checked with your lender what new fixed rate they can offer you. Mine comes to and end at the end of August and my rate was 6.55% but my lender has offered me 2.79% for 2 years, which is cheaper than the SVR rate of 3.5% so I'm going to fix on the lower rate.

Ive had a quick look at the new rates they can offer (Nationwide) and my current rate can be dropped. I was just throwing this out for anyone having a look and for any advice/tips/thoughts etc

jasmin10

Just read your post. I'm also with NW and my product comes to an end in Oct. I decided to check my key facts thing that I got when I completed as I remembered it says something on there about when the product finishes. Check yours, as mine says something along the lines of, when my product finishes I will go on the standard variable rate which is guarenteed to be no more than 2% above the Bank of England. So in essence it is better for me to leave it and let it drop onto the base rate as all the other products are higher rates at the moment.

Just an idea, you never know
HTH

jimjames

Personally I've always preferred the variable rates, you lose some of that security but generally I've found you get a lower rate overall. Certainly at the moment if you drop to a SVR at 2.5% then you'll be saving a lot compared to fixed rate.

AMILLIONDOLLARS

I am another Nationwide customer who's fixed rate comes to an end in September. I came on this site also looking for advice on whether to fix or stick. My initial decision is to stick with the variable, got stung with fixing as rates took a dive soon after!


AMD

davidscot

jasmin10 wrote: »

Just read your post. I'm also with NW and my product comes to an end in Oct. I decided to check my key facts thing that I got when I completed as I remembered it says something on there about when the product finishes. Check yours, as mine says something along the lines of, when my product finishes I will go on the standard variable rate which is guarenteed to be no more than 2% above the Bank of England. So in essence it is better for me to leave it and let it drop onto the base rate as all the other products are higher rates at the moment.

Just an idea, you never know
HTH

That rings a bell yes, will have to go look out the paperwork:eek: it will be there somewhere!!
So that means I will be on a rate of 2.5% instead of current rate of 5.45%?

Fortyfoot

I have just got my paper work re end of fixed period and have had a look at the figures given below.

My gut feeling is to just let it go on to the Base Rate at 2.5% - £316.45, but will welcome any advice any member can offer.



2yr Fixed 2.99% ............... £333.19.................. £999.00 - Fee
2yr Fixed_NC 3.39%.......... £346.11 .....................£0.00
3yr Fixed_C 3.59%............ £352.69.................. £999.00 - Fee
3yr Fixed_NC 3.89%.......... £362.67..................... £0.00
5yr Fixed_C 3.89%............ £362.67.................. £999.00 - Fee
5yr Fixed_NC 4.09%.......... £369.42..................... £0.00


Fortyfoot

AMILLIONDOLLARS

Nationwide are offering a cash back of around £300 for anyone wanting to fix onto a new produce with them? My thoughts are, if these products are so good why the cash incentive, and in the long run £300 is peanuts in the scheme of things.

AMD

Will need to dig out my paperwork regarding which rate I am on!!

nrsql

Over 2 years on a 70k mortgage, 2 yrs at 2.99% the interest would be 4186. Fee of £999.
Note that the fee is about 25% of the interest and £300 cashback would be a meaningful amount.

£300 might not sound like much compared to the loan amount but when you think that this is a 2 year product then it puts it in pespective. The fee puts the rate up to about 3.7% over the 2 years, the cashback brings it down to about 3.5%.

Check the arithmetic - no guarantees.

handytips

There are many many very good Track and Fix products available on the market up to 70%LTV at the moment with no costs for arranging and they give you £300 for going with them, all of the products have a lower rate than Nationwide's variable. Please take this bit of advice onboard. Never show any loyalty to a lender, they show you none.