Nationwide 'switch and fix' could save existing customers big money!

MarkBargain

I took out a 5-year Nationwide mortgage last year with a 4.79% interest rate as I only had a small deposit at the time. I since made some overpayments and was surprised to learn that Nationwide would let me change to a 2.74% 2 year fixed mortgage with no fee! So if you can afford to make overpayments to reduce your Loan to Value (LTV) ratio, it's well worth looking into.

https://www.nationwide.co.uk/mortgages/existingcustomers/switchmortgagemiddeal.htm

My thanks to Nationwide for allowing this, and for the friendly service I received in switching over.

opinions4u

This is crucial to consider:

If you choose to switch to a new deal, this will revert to our Standard Mortgage Rate (SMR) at the end of the deal period, which has different features to the BMR. As a guide to which rate applies to you, customers reverting to the BMR will have taken out their mortgage on or before 29 April 2009.

Don't chuck away a 2.5% follow on rate without careful consideration.

MarkBargain

opinions4u wrote: »

This is crucial to consider:

Don't chuck away a 2.5% follow on rate without careful consideration.

But after the 2 years fixed period customers can simply choose a new fixed rate product to avoid remaining on the SMR, so I don't see a problem.

opinions4u

MarkBargain wrote: »

But after the 2 years fixed period customers can simply choose a new fixed rate product to avoid remaining on the SMR, so I don't see a problem.

You're assuming that there will always be products to choose.

You're assuming that those products will always be a decent rate.

You're assuming there will be an active and accessible remortgage market if Nationwide don't have something to offer.

I'm not saying don't do what you've done. But giving up a 2.5% go to rate to achieve it is not necessarily the right thing to do in all circumstances.

kingstreet

I agree with o4u.

Anyone with a mortgage with Nationwide pre-30/4/2009 rolls onto BMR, at base + 2%, so they should be more careful.

Those with later mortgages have no problem, as they have SVR 3.99% as their follow-on rate.

MarkBargain

opinions4u wrote: »

You're assuming that there will always be products to choose.

You're assuming that those products will always be a decent rate.

You're assuming there will be an active and accessible remortgage market if Nationwide don't have something to offer.

I'm not saying don't do what you've done. But giving up a 2.5% go to rate to achieve it is not necessarily the right thing to do in all circumstances.

I think those are fair assumptions and worth it to drop from 4.79% to 2.74%.

I don't know what you mean about giving up a 2.5% rate, as I only took my original 4.79% mortgage last year and after the 5 years it would have reverted to SVR anyway.