Give This Man A Choice!

neddog

You give him a problem!!

My £85,000 Nationwide mortgage is up for renewal this next month. I have been on a 2 year fixed at 4.75%. Nationwide are offering me either a 5 -year fix with no fee at 5.98% or a 2 year fix at 6.48% no fee.

They are also giving me the option to go on to a 2 - year Tracker at 6.08%. No fee. If I went onto the tracker I could handle a few more modest interest rises Obviously with the fixed I know what my monthly payments will be for the next 2 or 5 years however the Nationwide was quoted in today’s paper saying that Bank of England will have to cut the base rates in the next few months as we may be heading into a recession following the US credit crisis.

I would be a bit gutted if interest rates went down again to 3.99% and I was stuck on 5.98% I have to make my decision this weekend. Fixed or Tracker. What would you do?? I used to be indecisive. Now I just don’t know!

Thanks for any advice

Lillys_mum

neddog wrote: »

If I went onto the tracker I could handle a few more modest interest rises

What if they weren't modest and you couldn't handle them?

Obviously with the fixed I know what my monthly payments will be for the next 2 or 5 years

What price do you put on piece of mind?


I would be a bit gutted if interest rates went down again to 3.99% and I was stuck on 5.98%

Think how relieved you would be if they went up to 15% and you had it fixed for the next 3 - 5 yrs.

Just my thoughts but I would fix.

We have just bought a house and have taken a 10yr fix at 6.29% with the Halifax - maybe not the best deal around but I know what I will be paying for the next 10 yrs and I wont even bother listening to anything about rate rises or falls.

Lizzy

Why not wait a month or two and see. Yes you will be paying the variable rate for a few months but you will be able to see how the market and the offers are going. BUT IF the rates go up you could have missed the boat.

I would wait unless the new variable + whatever rate your bank has decided to add on top is huge.

torbrex

You could go to the variable but make overpayments. You say that you could afford a few modest increases, why not use the extra cash that you have available to cover these increases to reduce the capital sum of your mortgage so that any future increase in interest rates would not have the same impact. This would also go some way to reducing the term of your mortgage as well as putting you in a better position to look for another deal once the rates have settled down again.

alm721

Hi, Im in exactly the same position with nationwide (In fact I could have posted what you wrote), am also in a slight dilemma, however you can take the tracker and then change to any other product at any time without incurring a fee (unless the product you want to take has one attached but you dont get penalised for switching if that makes sense). Since the tracker and the fixed rate are free fee, I think Im going to hedge my bets and take the tracker in the hope that rates may fall a little and then look to swop to a fixed. (although just cause BOE rate falls theres no guarentee that the fixed rates will change I suppose with it costing banks more to borrow money.) Whatever you decide to do I'd have another look tomorrow as another poster said that some of Nationwides rates are due to come down at midnight tonight.

pollyanna24

My fixed rate is up with Nationwide next April and I'm just hoping that when the time comes for me to fix (Feb 1st 2008 I think, Nationwide won't reserve for 6 months otherwise it'd be Nov 1st 2007), I'll still be able to take advantage of the loyalty mortgage they have at the moment (hopefully at a lower rate).

niadoz

Is it true that some of the mortgage lenders give better deals in January (like a Christmas sale)? I'm due to remortgage in Feb.:rolleyes: