Product switch

HATTERS81

My fixed term with Nationwide ends at the end of this month. I am looking at doing a product switch with Nationwide as the rates seem competitive and I don't want to complete another affordability assessment. My details are:
Property value = £410,392 ( nwide price index)
Outstanding balance = £262,368
LTV = 63%
Term = 37 years

I currently pay £1071 a month (3.59%)
I cannot afford to pay a £999 fee up front and do not want to add it to the loan over a long mortgage term.
My fee free options are as follows:

2 yr tracker 1.69% £795 a month
2 yr fixed 1.89% £822 a month
3yr fixed 2.19% £863 a month
5 yr fixed 2.54% £912 a month
10yr fixed 2.99% 978 a month

My preferences are the 2 yr tracker and 5 yr fixed but I am leaning towards the 2 yr tracker and overpaying by £275 a month so I will be paying the same amount I'm paying now as I really want to bring the term of the mortgage down. Can't really see base rate going up for the next 2 years at least especially before leaving the EU takes place in over 2 years time. Just wondering people's opinions on the options I have. I understand it's crystal ball type stuff regarding future economics and base rate but would really value some people's thoughts.
Many thanks

getmore4less

You should look at fee based as well they, can work out cheaper over the fixed period, you don't pay over full term if you use the savings from the lower rate to overpay.

Thrugelmir

HATTERS81 wrote: »

My preferences are the 2 yr tracker and 5 yr fixed but I am leaning towards the 2 yr tracker and overpaying by £275 a month so I will be paying the same amount I'm paying now as I really want to bring the term of the mortgage down.

Personally I'd opt for the same plan as yourself. With a £262k debt and a 37 year term left on the mortgage. I'd want to reduce this balance as quickly as possible. As whatever the short term may hold. You are still exposed to the possibility of a sizable increase in outgoings in the years to come when interest rates do start to rise.

In addition to paying what you already do. I'd be looking for further savings in outgoings to speed the process of debt reduction further.