Fix deal coming to an end... Advice required.

dekoder

You would need to pay it upfront. You can't get the product for the below 80% LTV before that.
Check what they offer under 80% LTV first

Foxy-Stoat_3

I would of thought that your LTV would need to be less than 80% before you fix to a new deal.

Do you know what Nationwide think your property is worth?

darrenwis

Ah ok, I'm not in a situation to pay it up front, so I will just need to fix at the current rate. With interest rates slowly starting creep up at the end of 2015 (possibly). Do people think I should fix for 2, 3 or 4 years?

year fixed 2.44% £999 fee £434 p/m
2 year fixed 2.84% No fee £460 p/m

3 year fixed 3.14% £999 fee £479.67 p/m
3 year fixed 3.44% No fee £499.62 p/m

4 year fixed 3.14% £999 fee £479.67 p/m
4 year fixed 3.44% No fee £499.62 p/m

Many thanks,
Darren

Foxy-Stoat_3

Ha, they are talking about dropping the interest rate !

Dont go with a fee paying rate though as you will not save anything over the length of the fixed term.

darrenwis

Foxy-Stoat wrote: »

Ha, they are talking about dropping the interest rate !

Really?

I was thinking of fixing for 4 years, no product fee at £499.62 p/m.

Is that a sounds choice?

Foxy-Stoat_3

darrenwis wrote: »

Really?

I was thinking of fixing for 4 years, no product fee at £499.62 p/m.

Is that a sounds choice?

Only radio talk so probably wont happen.

Fix for 2/3/4 years, its up to you really. If nothing is going to change in the next 4 years then fix for as long as possible.

getmore4less

darrenwis wrote: »

Ah ok, I'm not in a situation to pay it up front, so I will just need to fix at the current rate. With interest rates slowly starting creep up at the end of 2015 (possibly). Do people think I should fix for 2, 3 or 4 years?

year fixed 2.44% £999 fee £434 p/m
2 year fixed 2.84% No fee £460 p/m

3 year fixed 3.14% £999 fee £479.67 p/m
3 year fixed 3.44% No fee £499.62 p/m

4 year fixed 3.14% £999 fee £479.67 p/m
4 year fixed 3.44% No fee £499.62 p/m

Many thanks,
Darren

use a simple calculator add the fees and make the payments the same then see how much you owe at the end of the fix.

http://www.whatsthecost.com/mortgage.aspx

£118 000 no fee , fee

2Y £460, £113542, £113642
2Y £500, £112556, £112659
3Y £500, £111876, £111888
4Y £500, £109690, £109366

getmore4less

Foxy-Stoat wrote: »

Ha, they are talking about dropping the interest rate !

Dont go with a fee paying rate though as you will not save anything over the length of the fixed term.

darrenwis wrote: »

Really?

I was thinking of fixing for 4 years, no product fee at £499.62 p/m.

Is that a sounds choice?

the numbers say pay the fee if going for 4 years.

darrenwis

but if i fix for 2 years, then my LTV should go under 80% which is currently the next bracket of lower interest rates for Nationwide?

Foxy-Stoat_3

darrenwis wrote: »

So if i fix for 2 years, then my LTV should go under 80% whcih is currently the next bracket of lower interest rates for Nationwide?

Yes, you need to weigh up the reduced interest rate for LTV of less than 80% against the possibility of interest rate rises.

The two may cancel themselves out, or work nicely in your favour.

Best thing to do is fix for what you can afford and are happy with now, rather than second guessing the future market. The rates you are being offered aren't bad though.