Nationwide BMR or fixed rate

Sarcher_2

I have a bit of a dilemma...currently on nationwide BMR do currently 2.25% set a base rate plus 2%.

Owe 68k, value approx 94k ltv 73%.

Current payment is £260 put I overpay by £140 per month and will continue doing so....

Current fixes with nationwide are 5 yr no fee 2.34% and 10 year fix is 2.89%
I feel 10 year would be better in case mortgage rates have increased when I end my 5 year fix, my term is 30 year but hope to pay off a least 10 years early.

Can't decide whether to stick or twist....have been reading and some think rate will drop again in Nov to approx 0.10% and not increase until 2019.

Any advice would be appreciated.

MortgageMamma

Why do you only want to stick with Nationwide?




Nobody has a crystal ball regarding rate changes, but a 2.34/2.89% mortgage is still a very good deal. What you have to ask yourself is are you prepared to risk having to pay early repayment charges if you need to move within the timescale of the fixed rate? I know some mortgages are portable but there is no guarantee you will fit Nationwides criteria at a future point in time.

Sarcher_2

Thanks for your reply.....

Reason for nationwide is since we first got the mortgage my wife is now not working and have 4 young children so worry about affordability criteria therefore would avoid with nationwide ( even though as you can see we can afford to overpay by £200 at this time)

We will not move baring any exceptional circumstances as we have just had an extension put on And convervatory

MortgageMamma

Hi - I see what you mean but there is always the chance they will check if you still fit criteria. Have you had a go with Nationwides affordability calculator?


In your situation, if you are confident you are not going to move then you must opt for the product you feel the safest with. In terms of added fees to the mortgage there is potential to save a considerable amount of added fees by going with the 10 year fixed, as you won't have to swap products every few years. That said if the rates fall further you could pay more than somebody on a tracker. Its all about your attitude to risk really - I am a mother of four and I would my risk profile is cautious - but if you have a lot of disposable income and can afford to be adventurous then you could hedge your bets (and it is a bet whichever way you look at it) on a tracker.


Sorry I can't be of more help I only wish I could see into the future. Mainly for the lottery numbers.