I've remortgaged!!

rca779

Well my 3 year tracker deal with the Nationwide (NW) ends on Dec 31 so I have today agreed a new remortgage deal with NW.

My mortgage is for £58k with 12 years remaining.

I have spent the last few weeks looking at all the deal available at present, but to be perfectly honest I have been put off 95% of them because of the high valuation fees.

So this left me with the choice of deal available with the NW and it eventually boiled down to a straight choice between their 5 year fixed deal with a rate of 5.63% or their lifetime tracker deal at B0E + 0.34% (6.09%). Both of these deals were fee free which made them all the more attractive.

I finally decided to go with the tracker as I really didn't want to be tied in for 5 years with the fixed deal. A few things helped me make my decision and I'd like to share those with you. Firstly, the key features that NW provide have one really nice section that detail how much my repayment would change if the BoE rate goes up 1% and it was only £30. The second thing that helped me make my decision is that I am able to switch to another NW fixed deal at any time during this deal if I wish without having to pay any charges (obviously if the new fixed deal has a fee I would have to pay that). Finally the tracker ( I think the fixed does as well?) allows me to over pay my monthly premiums by up to £500 per month (I wish!).

So there you have it, B0E + 0.34% tracker for the next 12 years with the idea of trying to be mortgage free inside 8 years.

dunstonh

so I have today agreed a new remortgage deal with NW.

You havent. You have agreed a new deal with the same lender. Remortgaging is when you change lender.

You have a small mortgage so the difference in rates is not going to hit you a lot and where we are on the interest rate cycle probably suits you going tracker. A few years ago, fixed would have been the dead cert but now for small amounts, that probably isnt the case.

rca779

Ok if you want to be picky then no I haven't EXACTLY remortgaged, but I have chosen a new deal and it just happens to be with the same lender as I think that deal suits my circumstances best.

I am pleased to hear you say that the tracker suits best as this was my thinking too. If and it's a very BIG IF rates ever go as low as they once were, circa 4%, then I will probably change to a fixed deal for as long as I can!

sarkin

I cant see rates going lower in the near future now that inflation is above 2 % again. It's all over the papers that food and fuel have gone up. I think they may stick for a while to see how inflation pans out

rca779

That's what I am banking on.

When I first moved 10 years ago I took out a 5 year fix for 7.5%. At the time it seemed a good deal bearing in mind in the early 90's I was paying about 15%. Anyway as we now know interest rates went down pretty low but I was tied in and it was too costly to move mortgages.

This is the reason I am so reluctant to tie myself in now. If/when they come down to sub 5%, then I might consider a fixed deal. In the meantime, I can afford to gamble as a rate increase of 0.25% will only cost me about £8/month.

rca779

Well hopefully I've made the right decision not to fix.



http://news.bbc.co.uk/1/hi/business/7094208.stm


Let's just hope the rates do come down!