Mortgage deal ending, what now!?

LJ_80

Hi there,

My 5 year fixed deal with Nationwide ends next month so I'm considering what is best to do now.

House is worth £180k and mortgage is at 44k. Remaining term was 18 years.

I was paying £301 per month but I see I could get a two year tracker deal with Nationwide again and pay £237 per month. The good thing about that is there's no early repayment charge or product fee. I would plan on trying to overpay by up to £1k per month and really try and get the mortgage down over the next 2 years.

I'm currently just saving each month so thought I'd be better starting to overpay mortgage instead if I can get this deal with no penalty for doing so.

My only worry is that in 2 years I get hit with higher rates if they do go up. I could alternatively fix for another 5 years at a low rate but would probably get hit with overpayment charges.

Any thoughts appreciated!

Thrugelmir

Do you drop onto Nationwide's BMR or SMR when the fixed rate period ends? Worth checking before you make any decisions.

Dandytf

Thrugelmir wrote: »

Do you drop onto Nationwide's BMR or SMR when the fixed rate period ends? Worth checking before you make any decisions.

My 5 yrs fix ends mid 2017.

The previous post ends 5 yrs fix this year.

I'll hazard a guess and think SMR.

ViolaLass

Have you checked the details on ERCs? Our NW mortgage allows us to overpay 10% a year with no penalty. Yours might have offered more freedom than you think.

LJ_80

I may have been allowed up to 10% or £500 a month.


Up to now i've not really been in a position to overpay.


I think its the SMR i'll default to. The 2 year tracker seems like it would be the same as this but at a fixed rate for 2 years?


I'm also toying with the idea of paying 10k off out of my savings which I have built up over the last year but have read on here the advice is to keep an "emergency fund" before starting to overpay. £34k just feels a lot more clearable in the next few years than £44k!