Remortaging for better deal

gogsboy

Can anyone help, I called L&C but to be honest they didnt help much, perhaps as my mortgage is peanuts compared with what they are used to dealing with.

I am currently with Nationwide, 58k tracker mortgage, interest only with a stocks/shares equity ISA running along side it.

Seemed to be working well, the tracker part that is, I am not so sure about the ISA. However I called the Nationwide a good few months back when it became clear the rates had to rise.

I made it clear I wanted to see them urgently, they told me not to worry blah blah, however my job means I am out the country a bit so its not a normal situation.

Finally got an appointment with them and seen this women/girl who waffled away and basically gave me the leaflets (i was interested in getting something fixed)

I left Nationwide with assurance from her that Nationwide always stand true to their rates normally for TWO weeks after the Bank of England announce a rise.

So off I go leaving the Nationwide at 16.30 on a Thursday to discuss the options available and think aobut it over the weekend.

Get up early the next day and return to the house, only to be met with a message from this women/girl saying 'IRONICALLY' all the rates were going up ASAP and the reservation fee was also increasing, should I wish to take up any offers I would need to come into Nationwide immediately!

Now this message was left at around 9.30am but I had already left the house and never got back till close of business and even if I had got the message it still would have game me very little time to discuss the options available!

So I went overseas and the rate rose and rose and rose, I could do nothing about it. If I had been able to take one of that deals, I would have been laughing right now, maybe not laughing but more comfortable for sure.

Finally I am back and need to take action? Or do I just stick with what I have got.

Can anyone recommend a fixed morgo or the best deal for me.

I have seen Northern Rock offered 2yr fixed at some very low rates but with some ties ins. Are these cost effective based on getting such a low rate for 2 yrs. Even if it means you are tied to them after does it not just mean you will go onto the 'going rate' afterwards.

Any info to help me would be appreciated.

MarkyMarkD

Fixed rates are not particularly closely related to bank base rate rises. No lender can sensibly promise that fixed rate products are "normally" available for 2 weeks after each base rate rise - they have specific amounts of money available for each product and these are withdrawn as soon as the funds run out, which could happen at any time. The member of staff was a muppet if she said what you state she said.

There are many best buy tables available online which compare the fixed rates available. Try https://www.moneyfacts.co.uk for example. I wouldn't recommend a product (like NR's) with an extended tie in, unless you desperately need to save money in the short-term.

payless

yeah, changes in fixed rates rarely coincde with base rate changes-
its as Mark says, once funds run out, OR when the lenders/ markets think base rates may change

gogsboy

MarkyMarkD wrote:

Fixed rates are not particularly closely related to bank base rate rises. No lender can sensibly promise that fixed rate products are "normally" available for 2 weeks after each base rate rise - they have specific amounts of money available for each product and these are withdrawn as soon as the funds run out, which could happen at any time. The member of staff was a muppet if she said what you state she said.

There are many best buy tables available online which compare the fixed rates available. Try https://www.moneyfacts.co.uk for example. I wouldn't recommend a product (like NR's) with an extended tie in, unless you desperately need to save money in the short-term.

She was indeed a muppet, she used the word 'ironic' in her voice message informing me of the instant rate/fee rise!

I seen the manager about it afterwards and he admitted I should never have been told that about the rates not changing for a while.

Is there a product you would reccommend, currently I am paying 5.99 on a 58k mortgage and its an interest only product (Nationwide tracker)

Guess the first advice would be to switch to repayment?

I also have that investment stocks and shares ISA. Which is going to pay off my Mortagage and make me rich..ha ha. Keep it or cash it and pay it back into the mortgage. (I have only been paying in 3 years)

I seen an IFA but to be honest I am always wary of them, they spend 2 minutes on the mortgage and 1hour on some life policy!

The moneyfacts website gives some good offers on paper but what are the pitfalls, do the best buys take into account you are remortgaging and to change product you might need to be legal fees/valuation etc.

Is there not a way I can get direct advice from Martin, he is straight talking!

herbiesjp

Unfortunatley I don't think Martin wil answer direct.

However I do think there are a lot more rates out there that would be far more compritive than what you are on at the moment - the all important factor is whether or not the fees to re-mortgage would make it worth while. Would you save enough to cover any fees? Would a fee free re-mortgage rate be competitive enough to make you move? Would staying with Nationwide be an option?

gogsboy

herbiesjp wrote:

Unfortunatley I don't think Martin wil answer direct.

However I do think there are a lot more rates out there that would be far more compritive than what you are on at the moment - the all important factor is whether or not the fees to re-mortgage would make it worth while. Would you save enough to cover any fees? Would a fee free re-mortgage rate be competitive enough to make you move? Would staying with Nationwide be an option?

I was just kidding re. Martin


That is the big question, which product would be the best for my situation.

Nationwide are doing fixed rates at 5.19 with £389 arrangement fee.

I was hoping there was a better offer out there so they then lose me as a customer.

5.19 doesnt seem to attractive as 4 point something and only £185 fee which it would have been had I been treated properly

MarkyMarkD

Moneyfacts' best buy for 2 year fixed is 4.68% with the Portman with £499 of fee. On a £58k mortgage, the 0.51% interest saving will save you 1.02% over the two years or around £600. That isn't honestly enough to cover the costs of moving away from the Nationwide - legal fees and valuation costs will easily cost £500, and the Portman's fee is £110 more than Nationwide's in any case.

So, it's not really worth moving from Nationwide, based on a 2 year fixed rate comparison.

johnrammy

I have just remortgaged with the Halifax - I wouldn't normally go anywhere near them as i always thought there deals were uncompetitive.
I was going with Nationwide on a two year tracker at 4.79 % arrangement fee of £389
Halifax is a 2 year tracker @ 4.99% with no fees at all.
The halifax is approx £250 dearer over the two years but the bonus is no arrangement fees.
The guy said it normally would incurr costs but they are testing the water and have waived all fees for a limited time. It may be a sales pitch, but it seems a good deal to me.

Happy hunting

Froggitt

You will find at the end of the two years their best mortgage rates are for Brand New Customers Only