How Long Should I Fix For ?

JOBEN

getmore4less wrote: »

If you stay with nationwide you should not need to move both bits.

You are trading a base rate tracker of +2% for the fees or new deal and/or higher follow on rate.

Overpaying by the fees and any increased payment will bring the mortgage down making any rate rises have less impact.

Also with such a small mortgage any fees will make switching in the future less viable.

on a 12 year term even the 5 year fix will have you down under £41k fees a big issue.

Sorry if I am being thick but I'm a little confused - are you saying don't change anything and just stick with bmr plus 2%???

getmore4less

looking at the 10y fix on £54500 paying £455pm
amount outstanding after 10years
£8000 base+2%
£9700 2.94% 10yfix no fee
£10600 2.84% 10yfix £999 fee.

£1700 over 10 years for piece of mind

increase the payment to £525 paid off in 10years.

getmore4less

JOBEN wrote: »

Sorry if I am being thick but I'm a little confused - are you saying don't change anything and just stick with bmr plus 2%???

NO, indirectly I am saying consider it as an option by looking at the numbers.

choose a 3 or 5 year fix now and you will have to change again to be better of making a change now.

getmore4less

JOBEN wrote: »

I have an early repayment fee on part of the mortgage @ £422 - I owe £10664 @ fixed rate of 2.89% fix runs out May 2017

whats the follow on rate forthis bit, BMR or SMR.

remember BMR mortgages have other benifits built in you may want to consider keeping.

SpeedSouth

Hi, We were on the NW tracker 2.25% above base, and jumped ship to the HSBC 1.49% above base.

This was fee free if you have an HSBC account which I think can be opened as part of the application.

We did this last year, I'm taking my chances for the time being and sticking with it. We have £78k outstanding, so the interest charges are obviously more costly if we move to a higher rate fixed one.

JOBEN

The rate after the 2.89% on the paperwork is 3.99% which is nationwides SMR can't find whether this is still the case !

Although I like the idea of bmr plus 2% I also like knowing exactly where we will be for the next 5 years - my first mortgage rate was around the 15% mark which may explain my thinking �� whilst I know it definitely won't go up to this - I am sure it will rise at some point in the not too distant future

getmore4less

If it was SMR it will be that 3.99 and that is what any deal will revert to if you take it.