Fix or stay on variable rate?

Honeysuckle43

Hi there

I'd really appreciate advice -

I currently have a nationwide mortgage of 2.5% - it's variable but always promises to be only 2% above the base rate. I've overpaid & have a fairly large amount I can draw down which is critical as I'm self employed. I can overpay as much or little as I like & can leave it when I like.

My issue is people - including Martin - are suggesting fixing as rates are at an all time low & interest rates are likely to rise. My concern is I would loose access to my overpayment or if I drew some down my mortgage would go up even if on a low rate.

I'd be so grateful of any thoughts / advice

Thank you

libf

If you stayed with Nationwide to fix then it wouldn't be a re-mortgage and so I believe you would still have access to the overpayment that you've built up (but please do check this!).

Rates aren't likely to suddenly shoot up large amounts though, so only fix if you're sure that you want to stay where you are for the amount of time that the fix lasts.

bowesworld

We are in a similar situation and were told by nationwide that if we were to change our mortgage product we would not be able to access any overpayments

getmore4less

any change.

No more overpayments back,

new follow on rate is the higher one.

giving up a base + 2% needs very carefull thought.

For those that can clear or get their borrowings down in a fixed term the numbers often stack up, longer term and you are taking a much bigger risk.

HappyMJ

2% above base rate is a very good rate. Look at the revert to rate on any fix you pick as you might find that's much higher than 2% above base rate.