What would you do?

TPK

Hello.

We have a fixed rate mortgage with Nationwide finishing in the last week of October. The amount owed will be £40000 on a house worth around £200000 (that's £60000 in the real world) The renewal options are: base rate at 2.5% = £272 per month or 5 year fixed rate 3.89%=£299 with £400 cashback.

We have 15 years left.

Any advice or opinions would be greatly appreciated.

Tim.

_Andy_

What about options with other lenders?

handytips

woolwich have a number of really good options, via their 'Great escape products' most have no arrangement fees, and should you take the life time tracker you are able to shift it to one of their fixed rates at any time (may be a product fee for this). They also give £300 cashback. Check it out i am arranging lots of these at the moment.

dimbo61

Thats a good 5 year fix and only £20 a month more than the 2.5% SVR you will be on shortly.
If you used the £400 cashback to overpay the mortgage and could afford £400/500 overpayments every month ( check with Nationwide about overpayments!!!) you could be mortgage free in 5 years
Well worth considering dont you think.
as for moving lenders well it all costs money solictors,exit fees,searches,surveys,ETC and the deal from Nationwide is very good

getmore4less

dimbo61 wrote: »

Thats a good 5 year fix and only £20 a month more than the 2.5% SVR you will be on shortly.
If you used the £400 cashback to overpay the mortgage and could afford £400/500 overpayments every month ( check with Nationwide about overpayments!!!) you could be mortgage free in 5 years
Well worth considering dont you think.
as for moving lenders well it all costs money solictors,exit fees,searches,surveys,ETC and the deal from Nationwide is very good

If they can't overpay they lose the base+2%