Nationwide advice needed regarding remortgage

MissScotia01

Hello everyone.
Our fixed term on our mortgage end at the start of Feb 2021 and we are in a bit of a quandary. We want to move in the next year, we were hoping to start process of putting house on the market by now, but Covid has delayed that until maybe the middle of the year when hopefully things might be a bit brighter! We are with Nationwide at the moment and we have an option to port our mortgage if we go for another fixed but not 100% confident that it is the right option for us and do they have strict terms to stick by concerning that?  We would have to borrow more when it came to move as we want to get a bigger house in the same town.  We could go onto a tracker mortgage but there isn't much difference in our payments between letting the fixed rate lapse onto the variable rate and the tracker (like £6 a month difference).  Really not sure what we should do and just looking for people's opinions?  Thanks

K_S

@missscotia01 Porting can be a hit and miss thing, as when it comes to the crunch, lenders have their own quirks and rules which may or may not align with your circumstances at the time.

The nationwide no-ERC 2 year tracker rate available for product switchers is 1.29% (with fee) or 1.69% (no fee). What is the variable rate that your product will fall back on to and what's the size of your mortgage?

In any case, generally speaking if looking to move in the coming year, you would rather be in a position where you can access multiple lenders rather than be tied to Nationwide and rely on being able to port.

MissScotia01

K_S said:

@missscotia01 Porting can be a hit and miss thing, as when it comes to the crunch, lenders have their own quirks and rules which may or may not align with your circumstances at the time.

The nationwide no-ERC 2 year tracker rate available for product switchers is 1.29% (with fee) or 1.69% (no fee). What is the variable rate that your product will fall back on to and what's the size of your mortgage?

In any case, generally speaking if looking to move in the coming year, you would rather be in a position where you can access multiple lenders rather than be tied to Nationwide and rely on being able to port.

That is another issue, our mortgage balance at the moment is £229k which is alright considering we bought in 2015 at £300k but because the value of our property has dropped to about £255k (mostly due to covid), we are stuck trying to get another 90% mortgage again and I think the only way would could get that is sticking with Nationwide as they would give us that being an existing customer. Our current rate that is away to finish is 1.85% and variable will jump to 3.59% but the available tracker they offer us through their online switcher is 3.54%. 

K_S

@MissScotia01 Apologies, for some reason I assumed a low LTV.

Are you sure it's not 3.34% as that's what I can see for 90% no-fee tracker product switches.

Unfortunately there's not a lot of choice at 90% LTV and your best bet may well be switching to a no-ERC 2 year tracker so you can move penalty free sometime this year.

MissScotia01

K_S said:

@MissScotia01 Apologies, for some reason I assumed a low LTV.

Are you sure it's not 3.34% as that's what I can see for 90% no-fee tracker product switches.

Unfortunately there's not a lot of choice at 90% LTV and your best bet may well be switching to a no-ERC 2 year tracker so you can move penalty free sometime this year.

I can see that rate but it isn't one they are offering on the switcher but I think it is because the have undervalued our property by about £30k which they did last time and I had to give them a call to get them to change it after getting them to check how much the houses are selling for here.  This might be the reason.  3.34% would be better than 3.54% that is for sure!

K_S

Oh yes, that's right it's 3.54% for the 95% LTV no fee tracker available for product switches.

MissScotia01

K_S said:

Oh yes, that's right it's 3.54% for the 95% LTV no fee tracker available for product switches.

I am going to phone them and hopefully get the valuation sorted to get it to 3.34% Thank you so much for your help