Nationwide Fixed rate ending soon - do nothing ?

smith9891

Hi, I think similar questions to this have already been asked but here goes. I took out a fixed rate (seemed good at the time) 5 year mortgage with nationwide that ends this September.
Having had a quick look if I do nothing I automatically go onto the BMR which is at the moment 2.5% which would put a large amount of money back my way!
So the question is that given the current situation (and my not thinking it will change any time soon) and assuming I would want to stay with Nationwide how easy / quick would it be in future to move to a new fixed rate mortgage and in the meantime enjoy the low rates ?

Cheers

Thrugelmir

Why not take the opportunity to overpay while rates are low? That's a guaranteed way of reducing the impact of any increase.

The downside of switching to another product. Is that you won't return to the guaranteed 2% above bank base rate.

No one can predict what may happen in the future.

smith9891

Whether pocket the cash (if OH) has way or overpay (my preference) how easy is it to switch to a fxed rate from the BMR. If its still with nationwide is that classed as a re mortgage or is it just a simple form fill?

Thrugelmir

Simple application providing you meet the product criteria.

Remember any fixed product now defaults onto the SMR of 3.99%.

The 2% guarantee is lost.

shackalak

It's not a re-mortgage as you are not changing lender. It would be a case of completing new forms and paying the necessary fee. You would receive a new 'offer' effectively as this would provide you with written details of the terms and conditions of the deal and any early repayment charges.

Nationwide generally calls this 'switching' as you are simply changing your product. When I was on a fixed rate with Nationwide, I could still overpay by up to £500 per month without incurring any early repayment penalties.

smith9891

Thanks guys. I may be able to overpay if / when I move to a less eyewatering interest rate.
As long as its pretty quick / easy to move to a fixed rate I think I will just do nothing,pay the same amount, and then keep a close eye on the interest rates and take out a new 5 year as and when.