Nationwide tracker mortgage - what's the catch?

muhandis

I have a NW mortgage fix coming to an end soon. I expect receipt of a lump sum in the next 6-8 months which I want to use to pay off a significant chunk of the mortgage (well above the usual 10% fee-free overpayment allowed) and maybe remortgage to a long term fixed deal at that point if makes sense. So, for the moment, I would like to stay with NW through a product switch. I came across the NW 2-year no-fee tracker which seems to tick all my boxes but seems like I might be missing a trick somewhere.



It says "No Early Repayment Charge - You'll pay no Early Repayment Charges (ERC), allowing unlimited overpayments and penalty free switching."

I take that to mean -
- I can overpay as much as I want, penalty free
- I am free to remortgage at any time, no penalty

Is my assessment correct or am I missing something obvious here?

Thanks,

K

spadoosh

Thats what it says to me.

The trick youre missing is probably hidden in the interest rates. I dont regularly check mortgage rates but my immediate thought was thats on the higher side for a tracker, im on 2.14% with a 5 year fix and not really in the good/best LTV brackets.

So i suspect you could probably get a lower rate all be it likely to include various fees and charges which rfom the sounds of it will be more than the additional you pay with higher rates. But check the sums.

muhandis

That sounds right, there are definitely better deals out there.

However, I don't mind paying a few months of a higher interest rate as long as the switch is hassle free, gives me the over-payment flexibility I need and the freedom to remortgage away without a fee in a few months.

spadoosh wrote: »

Thats what it says to me.

The trick youre missing is probably hidden in the interest rates. I dont regularly check mortgage rates but my immediate thought was thats on the higher side for a tracker, im on 2.14% with a 5 year fix and not really in the good/best LTV brackets.

So i suspect you could probably get a lower rate all be it likely to include various fees and charges which rfom the sounds of it will be more than the additional you pay with higher rates. But check the sums.

Thrugelmir

If base rate moves upwards then fixed rates will do likewise. Trackers provide flexibility of options.

Penelopa.Pitstop

It's a good product for what you need and there's no catch. I had two Nationwide trackers in past and they did their job when needed.