Nationwide 2.5% SMR

garfy1

We took the mortgage out in 2006, right at the height of the housing price boom in our area. When the fixed period finished in 2009 my circumstances had changed, along with a drop in value, so we have remained on the standard rate ever since.

This rate is 2.5% which I understand Nationwide no longer offers, it is only available to us as its an old account. Every new Nationwide mortgage will revert back to a rate of 3.99%.

My question is:- if I were to now remortgage and fix for 2 years, would I then be giving up the 'grandfathered' account and then go onto the new 3.99% rate? (Or higher if rates increase?)

Thrugelmir

Correct. You would lose your existing SVR rate.

dimbo61

Stay with your current rate/SMR and overpay every month.
Build up some savings in cash ISA,s but most pay 1/1.5% at best.
If you do take a fixed look at 4/5 years for security and even then Overpay every month.

garfy1

Thanks for replies. Yes I intend to stay and overpay as much as possible.

Thrugelmir

garfy1 wrote: »

Thanks for replies. Yes I intend to stay and overpay as much as possible.

Probably be your best option even if rates rise. As 2% above base is likely to be a good rate into the future.