Changing mortgate

gogsboy

Currenty on Nationwide BMR variable rate, currently at 5.99% and free to leave at any time or change product.

Would it be best to stick on that to see if rates come down as some seem to be predicting or move just now onto a 2yr tracker for example +0.04% at 4.79% currently then moving to 5.99% at end of period..........or go for a fixed rate? Probably not? Either way £389 reservation fee

Or move elsewhere, anyone know of suitable deals which would probaby have to have free val and legals to be worth while?

Also currenty I am interest only, how does it work changing to repayment and have heard people saying part repayment/part interest, who decides on this difference?

Thanks

cheghead

All depends on the amount to remortgage? Try moneysupermarket or charcolonline (links above) etc to find latest deals. A&L do several 'fee free' deals. Especially good if you only owe a small amount.

payless

They (nationwide) also now have a range of no fee products you could consider swapping on to-


which is best -will depend on how much is outstanding

cheghead

Also check the cost of exit fees. Might be better of staying with Nationwide and just switching product for now.

gogsboy

Thanks to all, I dont think there are any exit fees as such.

The mortgage is for 58k and has 22yrs to run, I have had a stocks/shares Isa backing it for 3 years but to be honest it hasn't made that much so thinking its maybe time to ditch it for some form of repayment.

gogsboy

payless wrote:

They (nationwide) also now have a range of no fee products you could consider swapping on to-


which is best -will depend on how much is outstanding

Just noticed that, they must have been introduced quite recently.

The burning quesiton would be is it worth paying £389 to only be +0.04% over the base rate as opposed to no fee and +0.24%

payless

gogsboy wrote:

Just noticed that, they must have been introduced quite recently.

The burning quesiton would be is it worth paying £389 to only be +0.04% over the base rate as opposed to no fee and +0.24%

introduced 10th May
based on £58K interest only

0.2 extra x 2yrs would cost £232 spread over the 2 yrs instead of £389 upfront

gogsboy

payless wrote:

introduced 10th May
based on £58K interest only

0.2 extra x 2yrs would cost £232 spread over the 2 yrs instead of £389 upfront

Thanks for that, would it make any difference if went down the repayment road, you seemed to be well clued up on mortgages would you change to repayment or a bit of both (if poss) or stick with the stocks/shares ISA for a bit longer.

It has only made around £500 over the 3yrs based on me paying £86 per month, but thats probably through one of the worst times in the stock market?

Thanks again

payless

gogsboy wrote:

you seemed to be well clued up on mortgages

I hope so !

The calculation on repayment is more complex ( different rates mean slightly different capital/ interest splits) BUT basically yes on a loan of this size better to go higher rate/ no fee

( My comments are purely based on comparing these 2 "inhouse" products, and not a comparison or recommendment from the open market- as fuller information required before making a formal recommendation- and these boards are not the place for that) Remember these come with a tie ( other products may not)
---
I don't offer advice on investments

suppose general questions - are you happy with level of risk?
Are products costs understood / competitive
--
On a monthly investment, so early on, the market movements in the last 3 yrs aren't really an issue ( other than highlighting the potential volatility )
as you are drip feeding from a starting start ( something called pound cost averaging- but thats for another thread)

---
take a look at
http://www.fsa.gov.uk/consumer/07_MORTGAGES/which_repayment/repay.html

and

http://www.fsa.gov.uk/consumer/07_MORTGAGES/which_repayment/repay_vehicles.html

gogsboy

payless wrote:

I hope so !

The calculation on repayment is more complex ( different rates mean slightly different capital/ interest splits) BUT basically yes on a loan of this size better to go higher rate/ no fee

( My comments are purely based on comparing these 2 "inhouse" products, and not a comparison or recommendment from the open market- as fuller information required before making a formal recommendation- and these boards are not the place for that) Remember these come with a tie ( other products may not)
---
I don't offer advice on investments

suppose general questions - are you happy with level of risk?
Are products costs understood / competitive
--
On a monthly investment, so early on, the market movements in the last 3 yrs aren't really an issue ( other than highlighting the potential volatility )
as you are drip feeding from a starting start ( something called pound cost averaging- but thats for another thread)

---
take a look at
http://www.fsa.gov.uk/consumer/07_MORTGAGES/which_repayment/repay.html

and

http://www.fsa.gov.uk/consumer/07_MORTGAGES/which_repayment/repay_vehicles.html

Would it be worth looking in the open market, when I have spoke to the like of L&C they dont seem to be very interested to be perfectly honest, probably because to them the mortgage is for peanuts which I guess it is in comparision with what many people borrow.

As for the investment, it seemed a good idea at the time and wasn't too bothered about risk but something is telling me it might not be such a good idea since so many people speak highly of repayment mortgages.

You mention, these products come with a tie, which ones are you talking about the Nationwide ones? They just have the two year tie do they not? Which would move with the base rate be it going up or down, that correct.

Thanks.

Morgos not my strong point, however I see the homepage talks about Mobile overide, now I know a little about that since I have been doing it for years now

herbiesjp

There are also some cheaper rates, with no fees and no ties - depends on what you are looking for though