Fixed rate period ending soon

Thrugelmir

G51shopaholic wrote: »

Now that some providers have put up their rates I'm getting new fixed 3yr rate from nationwide @ 2.99% (no fees).

You are the sort of customer the NW love. As you've given up your guaranteed 2% above base rate for life mortgage.

What's your follow on rate when the fixed term ends?

marathonic

Thrugelmir wrote: »

You are the sort of customer the NW love. As you've given up your guaranteed 2% above base rate for life mortgage.

What's your follow on rate when the fixed term ends?

Yeah, has he already taken it or is he planning to apply? Obviously, if he hasn't applied yet, he should SERIOUSLY reconsider it... Money is unlikely to come that cheap again - even after the crisis is over!!!!

cclarke12

G51shopaholic wrote: »

Our 5yr fixed rate finished this month.

Fixed with Nationwide at 5.34% now down to 2.5%

Your rate will change to whatever your mortgage providers base rate is. Some providers have base rate & standard variable rate.

Our mortgage dropped £220 a month!!!

Now that some providers have put up their rates I'm getting new fixed 3yr rate from nationwide @ 2.99% (no fees).

We are in same position as you - 5 year fixed is coming to an end. However, there is no way we are moving away from the base rate mortgage of 2.5%. The lowest 3 year fixed rate I could see with them is 3.79%, so interest rates would need to hit over 1.79% before the fixed rate became a better deal. Over three years I think we will be better off sticking with base rate mortgage given interest rates are showing little sign of movement in the short term.

getmore4less

G51shopaholic wrote: »

Our 5yr fixed rate finished this month.

Fixed with Nationwide at 5.34% now down to 2.5%

Your rate will change to whatever your mortgage providers base rate is. Some providers have base rate & standard variable rate.

Our mortgage dropped £220 a month!!!

Now that some providers have put up their rates I'm getting new fixed 3yr rate from nationwide @ 2.99% (no fees).

Look at the follow on rate on the new deal,

Think carefully before giving up a base+2.0%

Tabatha_Kitten

Thats kind of what I was trying to say in post #8.
I fear G51 may have given up a lifetime 2% tracker(2.5% BMR) in favour of a 3yr 2.99% tracker.

getmore4less

people need to keep saying it till they see sense.

Stroller133

I have the benefit of hindsight, but taking up the BOE + 0.99% follow on was the only sensible choice 18 months ago.

We have low Equity so best fix was one year at 4.79% then BOE + 4.24% for the new follow on rate

For a one year fix, even if it was 0% I don't think it would have been worth it, as I would now be on 4.79% and vulnerable to BOE changes instead of 1.49%

For me a fix would need to be 3% or lower for 5 years to entice me from the current tracker. Even then at the end of the 5 year period the current tracker might be missed?