2 year fixes to hit 6% within weeks!

Woby_Tide

quantumleap wrote: »

I've just been to the nationwide (my current and so far only providor). I've been on 2 year fixed for the last 6 years. The best they have is 6.18% with no fee.

Any views on this?

any views? only that a 2 year fix that lasts for 6 years is a good bit of business on Nationwides side

and that the existing deals are being withdrawn tonight so the 6.18% deal you were quoted becomes 6.48% tomorrow

Nationwide Building Society today announces an increase in rates on some of its fixed rate and tracker mortgages. The new rates are available from Tuesday 26 June 2007.
The new details are as follows:
Home Mover
Two year fixed rate (with £499 fee) available from: 5.98%
Two year fixed rate (no fee) available from: 6.38%
Two year fixed rate (with £999 fee) available from: 5.83%
Three year fixed rate (with £499 fee) available from: 6.18%
Five year fixed rate (with £599 fee) available from: 5.98%
Ten year fixed rate (with £499 fee) available from: 5.98%
Two year tracker (with £1,499 fee) available from: 5.13%
Remortgage and Additional Borrowing
Two year fixed rate (with £499 fee) available from: 6.08%
Two year fixed rate (no fee) available from: 6.48%
Two year fixed rate (with £999 fee) available from: 5.98%
Three year fixed rate (with £499 fee) available from: 6.33%
Five year fixed rate (with £599 fee) available from: 6.08%
Ten year fixed rate (with £499 fee) available from: 6.08%
Existing Nationwide mortgage customers get a £100 discount off their reservation fee when they switch from one Nationwide product to another, buy a new home or borrow additional monies.
Nationwide will also be increasing the reservation fee to £599 on its five year fixed rate mortgage and decreasing the fee to £1,499 on its two year tracker.
Nationwide will withdraw the current products at 11.59pm on Monday 25 June 2007

quantumleap

Cheers - I think you know what I meant regarding the two year fixed deals... so I'm not going to explain

Woby_Tide

quantumleap wrote: »

Cheers - I think you know what I meant regarding the two year fixed deals... so I'm not going to explain

actually it only just twigged, sorry

it's a shame you left it so late actually, Nationwide allow you to switch to a new deal in the last 3 months of your existing one, whilst it was evidently cheaper per month to remain on your current deal we made a decision a couple of months back to ditch our 2 year fix that ends in September and pay the small redemption fee (£200). They forwarded dated the new deal so it doesn't actually start till July 1st but we picked up the 5 year fix(no reservation fee) when it was 5.44%, thats over 0.6%+£600 fees saved now in just two months

dwsjarcmcd

mjr600 wrote: »

So is a 5 year fixed at 5.78 with a £400 arrangement fee reasonable in the market at present ?

If I was you I'd snap that up double quick!!

withabix

Only 6 weeks ago I changed my mortgage to a 2.99% 12 month fix followed by a 5.99% 48 month fix, with NO fee and NO overhang.

This deal has now risen to 3.99% for 12 months and 6.79% for 48 months :eek:


SO YOU CAN TELL WHERE THE MONEY MEN THINK RATES ARE GOING...

mjr600

dwsjarcmcd wrote: »

If I was you I'd snap that up double quick!!

Great, that's what I thought, it is with the Nationwide and the nice lady has told me I have my funds reserved.

Looks like a nick of time saving given the above post.

gabyjane

Hmm well ours is going to be over 6% which i realise is high BUT we are FTB, also we are buying shared ownership and have no deposit so the lenders are limited, i am self employed, so have quite a few things against us! Our monthly fee is great though and i'm more than happy to pay it for the house we will be getting!

princess_bambi

Woby_Tide wrote: »

Nationwide will withdraw the current products at 11.59pm on Monday 25 June 2007

Hee... I was up until 12 last night getting a 5yr fixed rate at 5.68% reserved, good shout Woby_Tide, thanks for great info! Have been speaking to brokers and they didn't come up with a deal as good as this! Lets just hope I can find a property in 3 months! Scotland is a nightmare for buyers!!!

:beer:

pollyanna24

As I can't do anything with my mortgage until 1st February 2008 at the earliest, am I being naive in basing my calulations on interest rates being 6% and therefore fixed rates about 6.28%? I was basing this on the interest rates being 5.5% now and their fixed being 5.78%. Wasn't sure how else to do it.

We can afford a little more, but what I've just read above and what I've just checked on Nationwide has panicked me a little as they've jumped to 6.08% and there hasn't been an interest rate rise yet! When rates go up again, is Nationwide likely to put them up again or have they already anticipated a couple of rises?

Woby_Tide

pollyanna24 wrote: »

As I can't do anything with my mortgage until 1st February 2008 at the earliest, am I being naive in basing my calulations on interest rates being 6% and therefore fixed rates about 6.28%? I was basing this on the interest rates being 5.5% now and their fixed being 5.78%. Wasn't sure how else to do it.

We can afford a little more, but what I've just read above and what I've just checked on Nationwide has panicked me a little as they've jumped to 6.08% and there hasn't been an interest rate rise yet! When rates go up again, is Nationwide likely to put them up again or have they already anticipated a couple of rises?

as per the original post, Nationwide are just following the swap rates which look to have priced 1-2 .25p rises into them. No guarantees but they probably won't up them again based on another IR rise unless the swaps price another in