Fixed deal ending , what next ?

mailman1962

Hi , coming to the end of a five year fixed with the Nationwide, thinking of just staying on there bmr rate , which is 2.5%, saving me £120 per month, is this svr likely to rise in the near future . Been offered some fixed deals but not happy with them and fees are involved on most of them, is it best to hang fire, not in a bad place finance wise , so can gamble a bit . Would be greatfull for any advice . Thanks Chris .

Thrugelmir

A guaranteed rate of 2% above base is not something to give up lightly.

As lending interest rates normalises then few mortgages if any will be available at this rate.

poocreek

mailman1962 wrote: »

Hi , coming to the end of a five year fixed with the Nationwide, thinking of just staying on there bmr rate , which is 2.5%, saving me £120 per month, is this svr likely to rise in the near future . Been offered some fixed deals but not happy with them and fees are involved on most of them, is it best to hang fire, not in a bad place finance wise , so can gamble a bit . Would be greatfull for any advice . Thanks Chris .

Lucky so and so..

I fixed my Nationwide deal in 2009 for a 5yr fixed. I was on their 2.5% bmr rate BUT switched it to a 5% 5yr deal fearing, just like you, that rates would go up soon. So gamble lost big time for me. Deeply regret that decision.
Read somewhere on the net that "experts" recon that rates won't start going up till 2016..

Thrugelmir

poocreek wrote: »

I fixed my Nationwide deal in 2009 for a 5yr fixed. I was on their 2.5% bmr rate BUT switched it to a 5% 5yr deal fearing, just like you, that rates would go up soon. So gamble lost big time for me. Deeply regret that decision.

The SMR certainly isn't very attractive. Particularly as no guarantees like the BMR.

jimmyay

We are just ending a 3 year tracker on nationwide which has been at 3.5% seemingly forever.

We are just about to fix at 3.79% for 5 years with £400 cashback which i think is a good deal .

Yes, we could take a chance and go onto 2.5% - it would make our payments about £100 a month less on our £100k mortgage.

But feel peace of mind is worth more than this, the rate we're getting equates to 3.65% for 5 years, with the cashback - there's no fee and the mortgage is portable.

However i still feel slightly cowardly at chancing my luck on the 2.5% BMR and switching later . However mortgages may be more difficult to come by in future, things may change and i am quite cautious.

All a personal assesment of risk etc isnt it?

Litotes

I am in the same situation

https://forums.moneysavingexpert.com/discussion/3734847

Think I'kk gamble on things not moving so mcuh for the next few years and overpay where I can...

getmore4less

Overpaying/saving reducing net debt is the best protection against rate rises

Giving up base+2% life time tracker is something that should not be be done lightly

ESPECIALY if the deal you move to has has a higher follow on rate.

mailman1962

Thanks everyone for the advice, was offered the £400 cash back deal myself, but would equal that in just 3 months on the BMR rate , can't see the baserate going up in the near future , so think I will hang fire for now.