Nationwide BMR move?

F1nut1977

Hi all I am currently on the BMR with nationwide paying 2.25% and our home is worth £180000 with a mortgage left of £91000 and we have 26 years left on it. My monthly payments are £408 but I try to overpay by £100 every month. Struggling to work out if we would save by moving mortgage have tried the calculator and its confusing.


Any help thanks Lee

AnotherJoe

Any rate less than 2.25% would be saving you money. The overpayments are irrelevant to calculations, you could make them on another mortgage as well as long as it's as one that allowed them. Indeed you could likely overpay more.

Why are you struggling to work out if a rate lower than the one you are on would be cheaper ?I presume there is no charge to move if you are on BMR.

F1nut1977

There is no charge its just the fees of a product.....with having a LTV of 50% all the best rates have fees so yes the rate is better but adding the fee into the equation? Is it worth paying these fees every 2 years?

Adrian_Dorr

The fee isn't worth it on a 92k mortgage, but there are products without fees. To calculate the cost do the following:
Total cost = monthly *24 + fee - bonus

So for the 2 year fixed it is:
£333.25*12+999-250 = £8747

And without a fee:
£356.28*12+250 = £8379.22

So no fee it is.

getmore4less

Depends on the fee and the rate.

£91000 2.25% £500pm in 2 years you owe £82922

existing customers 2 y fix rates fee £999 and no fee

£91999 1.19% £500pm in 2 years you owe £82076
£91000 1.59% £500pm in 2 years you owe £81754

not paying the fee you are £322 better off

The quick calc is for interest only and these deals is £91k*0.004*2 - £999 = -£271
if negative the no fee is always better,
if positive you have to check with the actual payment


On those 2 rates with a £999 fee paying £500pm the break even is a mortgage of around £130,215 the IO method says £124,875


then the cashback need factoring in but you can ignore it on the fee no fee as it is available on both.

..................

Remember once you leave the BMR

you lose the other benefits like being able to get your overpayments back.

if for any reason you can not switch your follow on rate will be the SMR currently 3.74%

getmore4less

Adrian_Dorr wrote: »

The fee isn't worth it on a 92k mortgage, but there are products without fees. To calculate the cost do the following:
Total cost = monthly *24 + fee - bonus

So for the 2 year fixed it is:
£333.25*12+999-250 = £8747

And without a fee:
£356.28*12+250 = £8379.22

So no fee it is.

that method can get the wrong answer.

Ok for this one as the no fee is a lot better.

Thrugelmir

F1nut1977 wrote: »

Struggling to work out if we would save by moving mortgage have tried the calculator and its confusing.


Any help thanks Lee

What options have the NW offered you?

Once you leave the BMR you'll never get it back. So worth thinking carefully.

tlc678910

Hi,
We are on the Nationwide BMR and have chose to leave it as it is.

You can crunch the numbers every couple of years and keep applying for the best rates possibly paying fees or just relax on a great rate.

Even if you switch to a new product with Nationwide you will not be allowed back onto the BMR when it ends but onto the higher variable rate for customers now.

Tlc

kingstreet

Think carefully about giving up BMR.

You will lose many of the flexible features you currently have, including the ability to re-draw overpayments with just one phone call.