Nationwide Standard Variable Rate- a good idea?

Lelandhumpling

Hello everyone,

The first two years of our mortgage are coming to an end this month, we've been on a 2 year fixed rate at 5.74% - it's a repayment mortgage.

Nationwide have explained the following;

"If you do not switch to a new product you will automatically move onto the Standard Mortgage Rate, a variable rate, currently 3.99% and assuming this rate does not change and you make no changes to your mortgage, your monthly payments will be £xxxx"

Now, from what research i've done it would seem that I should be ok to go ahead with this as obviously it's a relatively low interest and obviously cheaper than what we were paying. The only risk is if the bank of England interest jumps up, right? And in that event, we should be able to change mortgage whenever we want?

The next best offers to stay with them would be 2 years fixed @ 4.49% (with a £999 fee) or 4.89% (no fee) or 3 years fixed @ 4.59% (£999 fee)

Please pardon my ignorance, i'm very new to all of this!

Any advice would be most appreciated

Thanks, L.

shop-to-drop

I would shop around if you have a healthy income and low debts. You should be able to do much better. If however you will struggle to get a better offer due to your income/loan to value or other debts then I'd stick with the Standard rate at Nationwide and work on improving my finances and try switching later.

Lelandhumpling

Thanks for your quick reply. Whilst our income is ok, is does vary month to month based on things like overtime etc and we do have small debts, (for some reason we decided to get a home, do it up and get married in the same year...).

We have a month to go, so I may as well try to shop around, and if unsuccessful, default to the SVR.

Thrugelmir

Tackle the most expensive debt you have first. After this overpay on your mortgage. It's the easiest way of saving money. As the less you've borrowed the less interest you pay, irrespective of interest rate.

We live in uncertain times so make the most of the situation as it stands.

Reducing your mortgage balance will also protect if house prices do fall. As it will maintain your LTV. Enabling you to obtain better rates.

Burridge60

Imagine you find a deal with another lender offering 3.99% which is fee free, no survey cost, no legal fees, no exit fees and no enquiries as to your income.

Would that be better than your current deal?

You could switch to a fixed rate later (with N/wide or elsewhere) just keep checking the Nationwide mortgage site.

It is as easy as coming here. You just log in with your mortgage account number, date of birth and sort code of the bank from which you pay your mortgage.

Check this from time to time and print the page out to compare in the future.