Nationwide cut fixed rates (again)

Hobo_2

As from tomorrow ( info from fool board )

2yr 4.69%

3 & 5yr 4.89%

10yr 4.99%

Same £389 charge or add 0.2% for no fee on all

payless

Hobo wrote:

As from tomorrow ( info from fool board )

2yr 4.69%

3 & 5yr 4.89%

10yr 4.99%

Same £389 charge or add 0.2% for no fee on all

The add on for no fee on the fixed rates is 0.4%

Badgergal

Sorry if this is a totally stupid question...I have the old five year rate with Nationwide, I guess I'm still stuck with it (only a year into it)? Are these new rates for "brand new customers only"?

payless

Badgergal wrote:

Sorry if this is a totally stupid question...I have the old five year rate with Nationwide, I guess I'm still stuck with it (only a year into it)? Are these new rates for "brand new customers only"?

No :- Nationwide rates are open to all classes of customer ( new purchase, remortgage or existing customers)

BUT

if you are in a existing tie period , there is likely a fee to pay to come out, which may make a swap pointless

Badgergal

Thanks - I guess I have to work out how much interest I would save against the fee then?

I'll have to go and see if I can find out what the fee is...

herbiesjp

Likely to be 5% of outstanding loan

payless

Their standard penalties on a 5 yr fixed were :-

5%/60 X the number of months remaining of the fixed/ fee period


so 1 yr in of a 5 yr fixed = 4%

calculated on the amount advanced or the balance of the mortgage at the last calander year end ( whichever the least) , less any overpayment made since then

Badgergal

Thanks. There's about 99,000 outstanding so I'm guessing its not worth even working it out...!

herbiesjp

It doesn't look like you would be better off

payless

Remember the fee would be charged now ( together with any arrangement fee) if applicable ( ie £389 on the lower rates) Whilst they may give option to add ( thus charge interest) - either way remember any interest savings on the (poss lower) rate would be spread over time


I recall placing 5 yr fixed with NatWide in the spring of 2004 at 5.29%
- therefore if thats the rate you got - does not look much of a goer

MarkyMarkD

payless wrote:

The add on for no fee on the fixed rates is 0.4%

Entirely illogically it's the same 0.4% whether the term is 2 years or 10 years - so you save the same £389, but pay an extra 0.8% to 4% depending on the term. Mad!