Fixed Rate Renewal

LizLeonard

I have a fixed rate repayment mortgage (£98k o/s) with the Nationwide that ends in May.

I can take out another deal now without penalty and have been told that rates with Nationwide will change on the 1st April but they cannot tell me whether they will go up or down. All they know is that the new 10 year fixed will be 5.19% which is the same as their current shorter term deals of 2,3 & 5 year deals.

10 years seems too long to fix at that rate, so I am interested in a shorter term.

Has anyone got a view on whether the shorter term deals are likely to be cheaper than the 10 year???

thanks

Liz

payless

At moment many lenders are offering the same or similiar rates across the various fixed term periods
( Nationwide rates from tommorrow will all be the same price - some changes in fees for remortgages)

supers

My fixed rate mortgage ends in may and i`am thinking of going with brittania 5.09% has anyone got any horror stories before i take the plunge or any better suggestions.thks

LizLeonard

I guess it all comes down to the true APR, by that I mean, the APR quoted reflects the cost of interest, how it is calculated and any arrangement fees but I do not believe it includes the cost of moving your mortgage i.e. Valuation fee and solicitors. So to get at the true cost you have to add these to all the costs throughout the life of the loan.

elsiebaby

we have just got 5 year fixed at 4.95% with Marsden bs, free valuation and solicitors and only £345 reservation fee, saffron waldron bs were also competitive

LizLeonard

Just went on Marsden Website, their 5 year money is 5.10%.

herbiesjp

Supers

Britannia have two terms for the 5.09% rate - but both with different fees. Which one were you looking at?

herbiesjp

Liz - what fixed term are you focussing on? What is your preference?

LizLeonard

I think 5 years will be the favourite

herbiesjp

Without knowing too much around figures it is difficult to say, whether a slightly cheaper rate would save you money over the 5 year period (against potential fees incurred) - but all rates are very similar as you have seen, so I would suggest looking at what Nationwide is offering - as it is competitive and you do not have the hassle of re-mortgaging.

LizLeonard

Thanks for the reply. I have to say that I do agree, not only is the cost difference probably negligable but with Nationwide if you apply via a branch, you have someone who you can talk to (the branch manager)who does provide a service and can sort out problems caused by 'automation'. Having read some of the horror stories here about other lenders it is probably worth the premium of an extra couple of bases points!