Should I stay or should I go?

LBJ777

Our 5 year fixed mortgage rate of 5.63% is due to end next month with Nationwide. We are due to go onto their base mortgage rate of 2% above the Bank of England base rate i.e. 2.5%.

As far as i can see this is pretty much as good as we can get but not knowing too much about the mortgage market wanted people's advice as to whether we should look elsewhere too ?

Using comparison sites I can see that there are lower rates but these all carry fee's.

Any advice is much appreciated.

shonzyd

depends whether you want the security of fixed payments or the risk of interest rates going up or down. Nobody can assess the financial risk to you - down to your individual preference dependent on your circs. what other fixed rate have you been offered too?

opinions4u

If it was me I'd stick, but overpay based on current payments.

ACG

If it were me, i would also stick and be overpaying.
I cant see the base rate changing for a good year or 2 at the very least. You could potentially be knocking years off your mortgage by overpaying.

LBJ777

Thank you for the advice so far. The overpayment idea was not something i was thinking of so will now consider that too.

kingstreet

I'd stick and save the money separately if you can get better than 2.5%. Although Nationwide does allow you to borrow back overpayments later if you were with them before 4 March 2010 and you must have been to be on BMR.

A nice decision to have to make...

rothchick

I'm in the same boat and have been on the BMR for last 16 months. Its a lovely 2% lifetime tracker that I will not be moving away from. I was overpaying but stopped now as we took out car finance to fund our first new car!!!
You have to bear in mind the variable rate you will move onto with other lenders once your special deal runs out. I can guarantee they will nt be 2% above BOE!!