See out the remaining term or cut my losses ?

Fabiaman

Unfortunately, I took out a 5 year fixed with Nationwide just before the interest rates dropped like a lead weight. I have 25 months remaining on a 5 year 6.18% fixed. Ouwch !

I have been told by Nationwide that as well as the near £2000 redemption charge, I will have to "go elsewhere" and pay further charges with a new provider to say set up a tracker for example. I have noticed however that some do fee free trackers, with HSBC doing one at base plus 2.79%.

I believe it will take me about a year to get back my redemption charges in the savings, but of course I don't know what will happen in a years time, whether the savings will reduce, whether it's really worth it ? Should I just see it out or cut my losses, I think it's around £175 cheaper a month against the HSBC product.

Any advice will be welcome !

dimbo61

Whats the follow on rate ? Not 2% plus base which is 0.5% and going nowhere at the moment !
We dont know your LTV or deposit you put down but you have security and can overpay by £500 ( if you can afford this )
So check the follow on rate and overpay if you can afford to

Only my opinion as I hate paying ERC,s if at all possible