Nationwide Bmr v 10 year fix

Sarcher_2

Hi all, currently on Nationwide Bmr which is set a Base rate plus 2% (currently 2.5%). Owe 72k with a LTV of approx 78%.

Current payment is 299 but overpay my 150 a month and have done since 2013.

Nationwide offer a 10 year fix at 3.04% with no fees. I would continue to overpay 150 a month for the full 10 years barring any major circumstance change I.e job loss

Question is do I fix now or hold out hopping that the fix rate goes lower or that the interest stays at its current level for longer.

We have a mortgage term of 30 years left

Thrugelmir

If you can afford the higher rate of interest and continue to overpay by a £150.

Why don't you overpay by more now?

Dandytf

10 yr fixed with Natwide@at 3.04% with no fees.+ overpayments.

I wish it was 2017 when my 5 yr 5.19% Natwide fix finishes

Marshyman

the BMR also has features on it that no new Nationwide product offers 1. payment holidays 2. the ability to borrow back overpayments that you make

Do you plan on ever using these?

Also switching to a new tracker rate from the BMR will lower your rate and payments and allow you to switch to a new fixed rate at any time without penalty, Have you considered that option?

Marshyman

that a pretty long rate you have Dandy!

getmore4less

someone looking at proper long term fixes rather than those piddling around with 2y&5y because rates might go up.

The thing you need to look at is the LTV changes in the short term.

what rates are available for a slightly better LTV if you can find a couple of £k you could be at 75%.

As has been pointed out you give up potentially useful benefits of a BMR.

Check for exit options and think about what might make you want to change or move.

Dandytf

Marshyman wrote: »

that a pretty long rate you have Dandy!

Eh!

(edited after typing all day at the office

Sarcher_2

Thank you all for your responses, answers to your questions are -

Have checked and the next drop on rate for LTV on the 10 yr product is 60%

We were on a fixed rate of 5% so we were paying 450, when dropped to Bmr carried on paying same amount hence 150 overpayment, would not b looking to pay more a month

Unlikely to use the Bmr features, we have already had our previous overpayments permanently taken off the mortgage

I can't see us moving in the next 10 years (house is worth approx 5k less than what we payed for it)

Sarcher_2

My worry about the tracker is we will come off at the same time as interest rates increase, when fixed rate and Svr are higher

getmore4less

You have a fixed payment of £450 so you can do the numbers over 10 years
starting with £78k in 10y
2.50% £38850
3.04% £42666

if you wait a year and rates don't change you will owe £74510, you would need a 9y fix at that point of 3.13% to beak even with the current 10y fixed deal

Remember you lose that base+2% but by then your mortgage will be quite low and £450pm over the remaining 20years will take a rate of 11.33%

Chances are you will be able to increase the payments any way so will owe even less.

Calling interest rates is a tough one, the rates can only go up mob will be right one day so far nearly 7years wrong.

I have not been looking but how have the 10y fix rates been varying over the last few months.

Sarcher_2

Thank you, the rate for 10 years was 3.04% August last year, then went to 3.34 and recently 3.24 until last week