Switching mid term Nationwide Mort different rates?

confusedbunny368

Hi we've recently moved house and got our mortgage on a 3 yr tracker 2.94% with Nationwide (no ERC). Our ltv was 75%. In the last couple of days we received some inheritance money and used this to make an unlimited overpayment to our mortgage. This has now made our mortgage 37%ltv. Our plan is now to switch to a 5 year fix with Nationwide and on looking at the website we thought as an existing customer switching from a tracker to a fix we could fix for 5 years at 3.09% however, when we went online through the process it says the 5 year fix available to us is 3.54%.

Can this be right if we have made such a substantial overpayment effectively halving our ltv?

Thank you

amnblog

Have you asked Nationwide?

confusedbunny368

Just rang Nationwide and for anyone who is interested their response was that although we have effectively halved our ltv we have access to the overpayments and therefore they still charge us for that overpayment reserve facility. So in our case that would be 3.59 fix for 5 years at £900 even though our ltv is only 37%.

To resolve this we need to write to Nationwide confirming that we want the overpayment reserve facility removing so that an accurate ltv can be reflected and we can then obtain the rates available to an existing customer switching mid-deal ie 3.09 fix.

TrickyDicky101

Are you happy to give up the reserve facility in exchange for the lower rate?

confusedbunny368

TrickyDicky101 wrote: »

Are you happy to give up the reserve facility in exchange for the lower rate?

Thank you. Yes we are. We have savings and life assurance. I didn't even know that facility was still available to such recent mortgages as ours. It wasn't a factor for us when we took out the mortgage. More importantly for us was the ability to make a big overpayment then do a long term fix benefiting from our loan ltv.