Remortgage decisions re term length and ERC

mae

Hi

We have a mortgage deal ending so we are looking to remortgage with the same lender (Nationwide) as its just easier and they are comparable to other lenders.

We owe £117,000 and our house is valued at £320,000 with 12 years left on our term.

They are offering (all no fee)

2 year 1.89% fixed

3 year 2.04% fixed

5 year 2.04% fixed

We are thinking 5 years will give us peace of mind with all the current unknowns and they cant go much further down but could go much higher! We have no current plans to move however equally we dont have plans not to move. I think I am right in saying that if we did decide to move within the 5 years as long as we stay with Nationwide we wouldn't pay the early repayment charges as long as we exchange same day etc?

Anyone with more knowledge than me have any input please?

Thanks

amnblog

You are correct. You can take the product to a new property providing you and the new property meet criteria with Nationwide for the new mortgage.

mae

amnblog wrote: »

You are correct. You can take the product to a new property providing you and the new property meet criteria with Nationwide for the new mortgage.

Thank you Do you have any opinion on taking the 5 year deal as opposed to the 2 year?

amnblog

I don’t know your circumstances.

You are best placed to decide what seems right to you.

I usually suggest Clients think about how long they want the stability of a fixed rate rather than worry about which is going to cost less overall.

mae

Hi

Just to update, we have decided to go for the 5 year fix for peace of mind as I must admit the politics/parliaments/brexit going on in the UK have me on edge even though I dont understand enough regarding what the changes could mean for interest rates I guess being in a 5 year fix is the only control I can take while we are in turbulent times.

Also luckily for us we are in a straightforward position with Nationwide so the remortgage seems simple enough, no long drawn out paperwork or fees and can just be done online and start straight away after our latest deal ends so I have been impressed with Nationwide and their processes.