Nationwide tracker mortgage - best option?

letsbetfair

I've got mortgage quotes from Nationwide and London & County. I'm borrowing £60k, with a 75% deposit. Nationwide have offered a 2yr tracker at 1.09% over base (1.84% now). No fee, and £500 cashback. Does this sound like the best available? I can't find better.

I've opted for a tracker mortgage that allows unlimited repayments because I should have an inheritance in a few months (going through probate now) that will let me pay around £20k of the mortgage off very quickly...and I'd hope to overpay by £500+ per month out of my income. Affordability is good - so even if rates rose to 10% in a year I would be able to pay.

kingstreet

No valuation fee, no product fee and a cashback makes sense at that mortgage amount.

The need to overpay in the short-term makes an ERC-free product essential.

If those are combined in a Nationwide tracker and that's the lowest rate, that sounds right for your circumstances.

letsbetfair

That's very helpful - thanks! Will go with Nationwide.

user1168934

I have been looking at tracker remortgage deals for the last few weeks with a similar LTA. The deal you have mentioned is the best I could find. I also met with my usual mortgage broker 2 days ago and he recommended the same deal.


FYI - I think you should take another look at the cashback part because I think it says that its either £500 cashback OR legal fees. If you take the cashback you will have to pay the legal fees yourself.

letsbetfair

Thanks - I'm buying on scotland and am paying a solicitor myself, so I don't know if that affects things?

kingstreet

letsbetfair wrote: »

Thanks - I'm buying on scotland and am paying a solicitor myself, so I don't know if that affects things?

user is talking about remortgage products.

FTB purchasers only have the £500 cashback option.

user1168934

kingstreet wrote: »

user is talking about remortgage products.

FTB purchasers only have the £500 cashback option.

Thanks for the clarification. I was indeed talking about remortgage.

letsbetfair

It looks like I may now get the inheritance in time for the purchase. Nationwide now have a 1.99% 2yr fix available on similar terms, but with a 10% per year limit on (free) overpayments. I'm trying to work out what would be better value. I can afford the risk of rates rising, so it's more about whether paying an extra .15% (and not gaining if rates fall) is worthwhile to take the fix...

getmore4less

Have you done the number crunch?

You are dealing with £60k max over 2 years 0.15% £180 Interest only

With repayment it will be lower, what full term were you looking at?
With max overpayment and the interest from savings even lower.

By the time you work all that out probably £50 difference.

letsbetfair

That's a point - so if the inheritance comes through and I borrow £40k, the difference will be trivial (unless rates fall, and they can't fall far...) I'd only be able to overpay 4k per year, but even if I could have overpaid £8k/year the difference between 2% interest in the mortgage and what I can get on the spare £8k saved up over 2 years won't be massive.

A fix might make sense, then, if the inheritance is through in time? And if I can be disciplined enough to save (or invest) the £s I would otherwise have overpaid...