10 Year fixed a wise move?

pollyanna24

darkcloudi wrote: »

Just like yourselves i'm on the BMR to.

I was reserving and cancelling my mortgage offer with Nationwide a number of times but feel now is the time to fix on the 2.34% for 5 years (only fixing for the re-assurance of knowing what I will be paying, guess everyones circumstances are different).

Would want to stay on the 2.5% due to the ability to borrow back what I have overpaid but feel since the rate is lower then the BMR I am going to fix. It allows me the 10% overpayment which I am going to take advantage of and pay the mortgage off as soon as I can.

I'm doing both of these mortgages, haha.

My existing mortgage will stay on the 2% above BOE rate, but I am having to take out another mortgage in order to pay my brother the equity in our house and I am planning on taking the 5 year fixed at 2.34% (as long as it is still there when I make my application of course).

Charterhouse

I was going to ask, why not do 5yr fixed. Less security I guess but you are still getting 5 years of security and will even pay less than tracker.

On the overpayment, most of these mortgages will let you overpay 10% a year without penalty. Worst case actually there is a way around the overpayment thing which is to shorten the mortgage to 5yrs (so repayments go up massively) then lengthen it back out when you are done overpaying.

getmore4less

Charterhouse wrote: »

I was going to ask, why not do 5yr fixed. Less security I guess but you are still getting 5 years of security and will even pay less than tracker.

On the overpayment, most of these mortgages will let you overpay 10% a year without penalty. Worst case actually there is a way around the overpayment thing which is to shorten the mortgage to 5yrs (so repayments go up massively) then lengthen it back out when you are done overpaying.

very risky.

delmar39

I know you have a Nationwide mortgage - have you not got a Nationwide flex current account? The Nationwide Flexclusive 4 year fix is 2.19% with no fee, they also do a 1.79% 2 year fix with no fee.


I am in exactly the same boat currently on the 2.5% SVR deal and haven't yet changed due to all the aforementioned advantages inc payment holiday, OP buy back.


If I do fix it will be the 1.79% 2 year deal as I can achieve reasonable savings over the short term. If rates do rise then it may turn out I'd have been better off with the 4 year flexclusive 2.19% deal, but it's a guessing game really!


Tough one isn't it, but the savings are there at the moment, but the flexible benefits would have to be sacrificed in the process.

Annie78

darkcloudi wrote: »

Just like yourselves i'm on the BMR to.

I was reserving and cancelling my mortgage offer with Nationwide a number of times but feel now is the time to fix on the 2.34% for 5 years (only fixing for the re-assurance of knowing what I will be paying, guess everyones circumstances are different).

Would want to stay on the 2.5% due to the ability to borrow back what I have overpaid but feel since the rate is lower then the BMR I am going to fix. It allows me the 10% overpayment which I am going to take advantage of and pay the mortgage off as soon as I can.

How long do Nationwide reserve a mortgage for you?

I have arranged a 2hr telephone thing with them next week to discuss my options. In my head we only have 2 options we are interested in, which is the 5 year fixed or remain on the BMR and jump if and when I need to. I only have a small mortgage with little time left so I'm still 50/50. It's the flexibility of the BMR that is stopping me fix, but knowing my next 5 years payments is making me want to fix.