Nationwide fixed till 2012- get out ?

hubb

In 2007 we fixed our Nationwide mortgage for 5 years at 5.63% which ends in Nov 2012.

I have just had a look at some of the rates and they are in the 2% region. Is it worth looking into getting out or should I stay ?

davidscot

hubb wrote: »

In 2007 we fixed our Nationwide mortgage for 5 years at 5.63% which ends in Nov 2012.

I have just had a look at some of the rates and they are in the 2% region. Is it worth looking into getting out or should I stay ?

Our fixed rate with Nationwide ends this month but when looking into ending fixed rate early the penalty charges were very high (roughly £2kish). You will have to factor in any penalty charges into any new deals you can get.

hubb

Just phoned them and they say I would have to pay £1027.19 to get out. They say I would only save around £600 if I ended it and went with their current rate of 2.63 % so it looks like it's not really worth it just now which is a shame. At the moment I pay £322 a month. It would only come down to £271 saving around £50 a month.

Thrugelmir

Overpay your current mortgage to save interest if its not worthwhile switching.

hubb

Can't really afford to do that. It's costing me enough as it is.

Thrugelmir

hubb wrote: »

Can't really afford to do that. It's costing me enough as it is.

Then I would think that you would struggle to remortgage in any event if this is is the case.

hubb

We don't want to re-mortgage (get a bigger loan). We will have to change it when the fixed term ends which will mean lower payments than we are now paying.

ginvzt

Re-mortgage does not mean getting a "bigger loan", it is getting a new deal. If you go with the same bank, they might not re-assess you (although, they might), but if you decide to go to a different bank, you will need to meet all the requirements. Once your deal is over, you will be reverting to bank standard rate. Which, for Nationwide mortgage taken out before 2009, I think is no more than BoE + 2%.

Thrugelmir

hubb wrote: »

We don't want to re-mortgage (get a bigger loan). We will have to change it when the fixed term ends which will mean lower payments than we are now paying.

Remortgaging merely means transferring your existing balance by making a new application to a new lender. This will involve full credit checks etc.

At the end of your existing product term your interest rate will drop onto your lenders SVR. In your case this is Nationwide's 2% above bank base for life.

Hard to see that you will be able to better this. All you can hope for is that interest rates continue to remain low for the foreseeable future.

hubb

I am self employed so I can prove income.

Thanks anyway, I will wait and see :-)

Dick_here

hubb wrote: »

In 2007 we fixed our Nationwide mortgage for 5 years at 5.63% which ends in Nov 2012.

I have just had a look at some of the rates and they are in the 2% region.

You've only just realised this ? :doh: