Mortgage Deal Coming To An End

car70

I am currently with Nationwide on a 3 fixed on 5.98%. This deal comes to an end in December then reverts to a variable rate currently at 2.5% (because it reverts to a Base Mortgage Rate guaranteed to never go above 2% of the base rate)

Should I let my mortgage revert, or should I go for a 5 year fixed deal at 3.89%, which will revert in 5 years to a Standard Mortgage Rate which means Nationwide can set the interest rate at what ever it likes when this deal ends.

Farmerbob

Just let is revert, they logic being why pay more interest when you dont need to. If the rates start going up then when they get nearer the new deal rates then look at fixing again.

getmore4less

stick with the base+2% and overpay/save as if you were on a higer rate.

Thrugelmir

No point in switching. As the 2% above bank base is guaranteed for the term of the mortgage.

There is no chance that the NW's SMR will ever be any lower than this.

car70

Thanks for the advice. I usually like to just fix and be safe, but these are extraordinary times and fixing for me at this time just doesn't make sense, but I was nervous about just letting it revert to SVR that's why I had to ask! It will be interesting if even better long-term fixed deals start coming up in the near future to tempt me? NW was trying to tempting me with a £400 cash-back if I switched now...

Thrugelmir

car70 wrote: »

NW was trying to tempting me with a £400 cash-back if I switched now...

Yes, as they get you off the BMR of 2.5%

So at the end of the new fixed term on to the SMR of 3.99%.