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Stay on BMR, or switch to fixed?
Maggo
Posts: 2 Newbie
Good afternoon,
I have a relatively small mortgage with nationwide. I am on a BMR at 2.5pc, paying around £500pm, with appox 6 years remaining.
Nationwide have a 5 year fixed at 3.19pc (no fee) paying around £530 pm. I am very tempted to switch.
Any advice would be appreciated,
Cheers Maggo
I have a relatively small mortgage with nationwide. I am on a BMR at 2.5pc, paying around £500pm, with appox 6 years remaining.
Nationwide have a 5 year fixed at 3.19pc (no fee) paying around £530 pm. I am very tempted to switch.
Any advice would be appreciated,
Cheers Maggo
0
Comments
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What advice do you want Maggo?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Sorry, to take the switch or not, or was that your advice!0
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So £500 a month times six years means mortgage of £36,000 approx.
No fee 5 year fix would mean you are nearly mortgage free in 5 years.
No plans to move ?
Can you overpay to clear the mortgage quicker IF you have no other debts?0 -
I'd stay on BMR. Interest is going to be such a small part of the payment you are making and interest rate increase is gong to have little impact on you.
Overpay the amount you would have paid if you'd switched and you'll pay the mortgage off sooner.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I'd stay on the BMR and overpay while interest rates remain low.0
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Good afternoon,
I have a relatively small mortgage with nationwide. I am on a BMR at 2.5pc, paying around £500pm, with appox 6 years remaining.
Nationwide have a 5 year fixed at 3.19pc (no fee) paying around £530 pm. I am very tempted to switch.
Any advice would be appreciated,
Cheers Maggo
Your numbers don't work
£500pm 6y @ 2.50% £33398 @ 3.19% £510pm
£530pm 6y @ 3.19% £34689 @ 2.50% £520pm
what are the real numbers
pay £530 on the 2.5% and knock 4 months of the term is rates stay the same the longer they stay below 3.19 the higher they can go later.0
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