Nationwide BMR - stay or not?

rpb424

Have been on Nationwide's BMR (2.5%) now for nearly a year, having fallen off a 5 year fixed rate last January. Just under £100k left to pay on mortgage for 18 years.

I know that BMR is a cracking rate, and probably the best available anywhere at the moment, but thinking ahead, I'm wondering whether to re-fix with them instead. Being a current account holder I can get their Flexclusive 4 year fixed rate at 2.49% with a £900 fee, or 2.79% with no fee. If I go for the fee option I'd add this to the loan, which I calculate would cost about £1100 over the lifetime of the loan, so only £200 more than paying the fee upfront.

Obviously no-one knows when interest rates will rise, but rumours are gathering regarding maybe in a year's time dependent on the unemployment rate ('forward guidance' etc.), so on the assumption they do within the next 4 years then BMR inevitably would rise and hence my repayments. There is also the danger of Nationwide increasing the rates on deals very soon in anticipation of this, meaning that not acting now runs the risk of losing out on a good deal.

Also aware that I'd drop onto Nationwide's SMR rather than BMR after 4 years, but I'd be looking for a new deal at that point again anyway given that we don't know what the BMR rate would be then.

Any opinions? Seeing various bits of advice on websites from mortgage professionals suggesting fixing now.