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tempting tempting - but do I switch
haras_nosirrah
Posts: 2,208 Forumite
Hi
We have a 2 year fix which finishes its tie in on 1st March. This bit of the mortgage (was additional borrowing when we moved) goes onto variable with Nationwide at 3.99% so no tie in, unlimited overpayments etc.
We also have 78k on a lifetime tracker with Nationwide tied in until 2014.
With this top up but which I anticipate will be around 20k (currently 25k) when it finishes I was going to let go onto the 3.99% and overpay to get rid. Currently 7 years left but am hoping to clear in 2
However something I have just seen tickles my fancy. They have a 2 year fix at 3.19% with no fee and £300 cash back. I could set my term at 2 years (their minimum) and still clear it in the same time frame but at a lower rate and with the tasty cashback. I am with them till 2014 regardless but is it worth getting rid of the freedom to make larger lump sum payments as get bonuses throughout the year (get around 6k in bonuses). Also anyone know what happens if I set it at 2 years and still overpay - will I have to pay an erc or when getting near the end could I switch to IO to keep say £10 on account until the end of 2 years to avoid the erc.
hmmm tricky tricky
what do you think?
We have a 2 year fix which finishes its tie in on 1st March. This bit of the mortgage (was additional borrowing when we moved) goes onto variable with Nationwide at 3.99% so no tie in, unlimited overpayments etc.
We also have 78k on a lifetime tracker with Nationwide tied in until 2014.
With this top up but which I anticipate will be around 20k (currently 25k) when it finishes I was going to let go onto the 3.99% and overpay to get rid. Currently 7 years left but am hoping to clear in 2
However something I have just seen tickles my fancy. They have a 2 year fix at 3.19% with no fee and £300 cash back. I could set my term at 2 years (their minimum) and still clear it in the same time frame but at a lower rate and with the tasty cashback. I am with them till 2014 regardless but is it worth getting rid of the freedom to make larger lump sum payments as get bonuses throughout the year (get around 6k in bonuses). Also anyone know what happens if I set it at 2 years and still overpay - will I have to pay an erc or when getting near the end could I switch to IO to keep say £10 on account until the end of 2 years to avoid the erc.
hmmm tricky tricky
what do you think?
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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