To switch or not ?

hubb

We are currently with nationwide and our fixed term finished a couple of years ago leaving us on the standard rate of 2.50%. As it has not gone up in that time we have left it. We have £24,000 left to pay which ends in 8 years, 2 months.

I phoned the nationwide and asked about any deals we could switch to but the difference in what we are paying now is miniscule. For instance, a 5 year fixed at 2.34% we would end up paying 0.37 pence more a month that we already do on a higher 2.50%. The other 5 year fixed option is 2.14% with a £999 charge to save us paying just £1.77 a month which would leave us £977.76 less off. It doesn't make sense.

Can anyone share any better deals to change to with other lenders, ideally with no fees ?

csgohan4

try the MSE best buy tables or London and country best buy tables, same thing. Either go direct or use a broker, your choice.

Fixing is good because the interest rates will likely be rising some point next year. Your 2.14% would sound good when your SVR goes up to 3% wouldnt it?

andyfromotley

Fix fee free to the 2.34% then you are injured to interest rate rises for five years. My reckoning is that rates are much more likely to go up than down.

Just beware if you plan to pay it off early or overpay then fixing has penalties involved.

hubb

andyfromotley wrote: »

Fix fee free to the 2.34% then you are injured to interest rate rises for five years. My reckoning is that rates are much more likely to go up than down.

Just beware if you plan to pay it off early or overpay then fixing has penalties involved.

That's the thing, I would like the freedom to pay off early as we now owe what a lot of folk would pay for a loan for a car

andyfromotley

hubb wrote: »

That's the thing, I would like the freedom to pay off early as we now owe what a lot of folk would pay for a loan for a car

there is an option to overpay on that product (i have it) but you are limited to 10% of outstanding balance per year. If it is really important to you then don't fix, go for the cheapest rate you can get fee free and hope rates don't rocket.

dimbo61

You have a small mortgage so moving lenders is not worth the cost.
You could take the fee free 5 year fix and reduce your term to 5/6/7 years depending on how much you can afford !
The quicker you pay off your debts the less Interest you pay :-)

Thrugelmir

hubb wrote: »

Can anyone share any better deals to change to with other lenders, ideally with no fees ?

Remortgaging will incur costs. With such a low balance owing. I'd overpay while interest rates remain low. With only a few years left on the term you'll be paying mainly capital rather interest in any event.

hubb

Does anyone know what the best fee free rate is ?

andyfromotley

Nationwide 2 year tracker 1.59. Given the small size of your mortgage you should probably stay with nationwide as moving invariably icurs some costs or a sligtly higher rate which will incur some costs.

Changing product with nationwide is easy and hasssle free. You can do it on the interent in 20 minutes. Plus when the teaser rate finishes you go onto one of the best variable rates out there.

hubb

andyfromotley wrote: »

Nationwide 2 year tracker 1.59. Given the small size of your mortgage you should probably stay with nationwide as moving invariably icurs some costs or a sligtly higher rate which will incur some costs.

Changing product with nationwide is easy and hasssle free. You can do it on the interent in 20 minutes. Plus when the teaser rate finishes you go onto one of the best variable rates out there.

That deal you are quoting is if you have a current bank account with them I was just told. I have arranged for one of their advisors to do it over the phone tomorrow so I can choose the best option. It looks likely to be the 1.74 tracker rate.