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Standard Variable Mortgage Rate @ 2.25% - Stay?

Hi,

I have mortgage with C&G (now Lloyds) at 2.25%. We owe £108k over another 25 years (was 30).

Is this still the best deal around? Should we stick where we are?

Thanks

Comments

  • Karma
    Karma Posts: 73 Forumite
    Part of the Furniture 10 Posts Photogenic Combo Breaker
    Looks like there are better deals out there, which is great news. I always assumed I had the better deal but that was a few years ago.

    Do I need to get my property valued to work out the LTV? We had it valued about 5 years ago but things have changed quite a bit since then.
  • Brighty
    Brighty Posts: 755 Forumite
    You'll need to know your LTV to know what rates you can get
    Remember it's not just about the rate, you need to take any fees into account too.

    You can use the Nationwide calculator to give you a rough idea of current value, just plug in your old valuation numbers and date.
    http://www.nationwide.co.uk/about/house-price-index/house-price-calculator
    If you change provider, they'll want to do their own valuation, which may not agree with what you think it is
  • Karma
    Karma Posts: 73 Forumite
    Part of the Furniture 10 Posts Photogenic Combo Breaker
    Thanks Brighty, I'll call them tomorrow - what fees should I be looking out for?

    Thanks
  • Mogley
    Mogley Posts: 250 Forumite
    I have a Nationwide mortgage on the BMR (BOE +2%). I have debated over re-mortgage to get a better rate. I came to the conclusion (after posting on MSE forum) that this is a fair/good lifetime rate for a mortgage. It's not the best deal out there but there are generally fees to pay (or increased rate) when you look for better mortgage deals every few years. One thing worth doing is to keep track of other similar lifetime trackers and change when you see a deal that's cheaper or suits you better.


    I also read an article a few years back that C&G and Nationwide are struggling to make money on the BOE +2% rate hence why most lenders SVR are 3.99% and above. It's nice knowing the customer is winning sometimes!
    You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.
  • Brighty
    Brighty Posts: 755 Forumite
    Mogley wrote: »
    I have a Nationwide mortgage on the BMR (BOE +2%). I have debated over re-mortgage to get a better rate. I came to the conclusion (after posting on MSE forum) that this is a fair/good lifetime rate for a mortgage. It's not the best deal out there but there are generally fees to pay (or increased rate) when you look for better mortgage deals every few years. One thing worth doing is to keep track of other similar lifetime trackers and change when you see a deal that's cheaper or suits you better.


    I also read an article a few years back that C&G and Nationwide are struggling to make money on the BOE +2% rate hence why most lenders SVR are 3.99% and above. It's nice knowing the customer is winning sometimes!

    Problem with that BMR is the second BOE rates go up again, so will the BMR. It used to be the case that Nationwide hated people being on such a low rate, but considering they are now offering fixed rates as low as 1.09% (2yr fix with £999 fee), i don't think that's the case anymore.
    I'm about to switch onto a nationwide 5yr fix at 1.99%, from my previous 4yr 2.99%, with absolutely no fees, they even give me £100 cash back
  • Mogley
    Mogley Posts: 250 Forumite
    Brighty wrote: »
    Problem with that BMR is the second BOE rates go up again, so will the BMR. It used to be the case that Nationwide hated people being on such a low rate, but considering they are now offering fixed rates as low as 1.09% (2yr fix with £999 fee), i don't think that's the case anymore.
    I'm about to switch onto a nationwide 5yr fix at 1.99%, from my previous 4yr 2.99%, with absolutely no fees, they even give me £100 cash back

    Fair point.

    There are other benefits to the BMR with Nationwide which I like including unlimited overpayments, payment holidays and even borrow back of overpayments. I'm not sure whether these benefits come with the OP's mortgage though.

    I also have a further advance (2 mortgages on one property) at 2.79% fixed with nationwide so I hedge my bets with regards to rate rises.
    You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.
  • Karma
    Karma Posts: 73 Forumite
    Part of the Furniture 10 Posts Photogenic Combo Breaker
    About to call C&G/Lloyds - What should I ask them regarding fees?
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