Fixed rate due to expire

hubb

We fixed our Mortgage rate with the Nationwide at 5.63% 5 years ago not long before the recession kicked in. It was unfortunate as if we had a tracker we would have paid a lot less.

Anyway, it expires on the 30th November and we are not sure what is the best thing to do. If we leave it to run it's course we will still be better off as the rate will drop down to the current bank of England rate. Are there better options ?

The only thing that has changed since then is that I am now self employed.

opinions4u

If we leave it to run it's course we will still be better off as the rate will drop down to the current bank of England rate. Are there better options?

If it drops to BofE 0.5% start partying! You won't get better.

If not, I think it's more likely to drop to BofE plus 2%. So currently 2.50%. This is still a great rate and I'd look at sticking with it and overpaying to get your debt down ahead of any future interest rate increase.

The only thing that has changed since then is that I am now self employed.

How many years accounts do you have?

What net profit shows?

How much is your property worth?

How much do you owe on mortgage?

Thrugelmir

hubb wrote: »

We fixed our Mortgage rate with the Nationwide at 5.63% 5 years ago not long before the recession kicked in. It was unfortunate as if we had a tracker we would have paid a lot less.

As O4U has said. If you are now on the BOE base plus 2% rate you will be the ones to benefit. Make the most of the opportunity to repay your debt quicker. As this is a once in a lifetime set of circumstances that shouldn't be missed.

dimbo61

I like to think that you have had 5 years security with your current fix!
I know you feel you have paid too much in interest but S--T happens.
Now many long term fixes with Nationwide went onto the BMR rate which is BOE plus 2% so currently 2.5% ( happy days)
Now if you have no savings then pay the extra you now have into cash ISA,s offering 3%+ and if you do have savings then overpay the mortgage every month by keeping your mortgage payments static.
You will clear your mortgage debt quicker and build up an overpayment pot ( very good idea ) GOOD LUCK

Dazza

I'm in the exact same position. My five year fixed @ 5.63 are due to end in Feb 2013. Phoned them today and confirm that we would go on to Base rate plus 2%, means we will be saving quite a bit every month, intend to use difference to overpay

rothchick

My fixed rate finished last November with Nationwide and I went onto the glorious 2.5% BMR rate. I continue paying the same as I did on the fix (£60 extra pm) This will take off approx 2.5 yrs off my term at current rate :j:j Also, protects me from future rate increases. I'm a very happy bunny

iwb100

Lucky people, ours expires next year but will be the SVR which is 3.99% and there is worrying current trend of lenders putting these up even without the BOE base rate going up!

The advice on here is great.

With one caveat, at the minute the BOE base rate doesn't look like going up. It may decrease to 0.25%. The predictions are it won't rise till 2016/17. However, that can change. It has in the past. Keep an eye on things and take the predictions for what they are, predictions. Anything can happen, and if you don't watch it, you could get a nasty surprise if rates do start going up!

dimbo61

So the best thing you can do IF you have no other debts is to overpay every month and become Mortgage Free asap

popstar

Hi, I too have a 5 year fixed with Nationwide which is coming to an end in January 2013. I am buying a new home and need a new mortgage and they are trying to pursuade me to keeo paying this rate until January next year when I will qualify for the 2.50% one or take a new one now at 3.19 fixed rate over 4 years. Any advice?
Should I shop around I only need a 40k mortgage hopefully paying off over 8 - 10 years max.
Thanks

Thrugelmir

iwb100 wrote: »

With one caveat, at the minute the BOE base rate doesn't look like going up. It may decrease to 0.25%.

Even the Nationwide could be forced to consider its guarantee if this was the case.

hubb

That's great advice folks. I do have savings but am not sure weather to overpay or buy ISA's. Closing balance at the end of last year was £33,662,72 with 11 years to go. we currently pay £322 a month if that helps :-)