No ERC and No Fee - What's the Catch?

mlaf

I'm due to remortgage soon and have spotted Nationwide's 2yr tracker mortgage with no ERC that can be arranged with no fee. I might sell and emigrate within the first six months so it looks like a no-brainer compared to continuing onto my provider's SVR.

So... what's the catch? It seems like being on the tracker is as restriction-free as being on their SMR, but with a cheaper rate...??

IAMIAM

Ive seen this, its very unusual that trackers with nationwide seem to be cheaper than their two year fixes. Which is the first time I have seen this over the last few years. I am presuming the Bank of England base rate will soon be rising again in a few months....??

london21

If looking to sell in the short term, then go for it. Read the small print.

Thrugelmir

There's no catch. As the NW incur no cost in sourcing the funds. You are simply going to pay market rate. The cost to you is rising and falling with BOE base rate. 

The only catch is the limited 2 year period. 

julicorn

Just wanted to say thank you for this thread - I was on a 1.84% tracker with Nationwide and have just changed the product over to 1.34%. Wouldn't have even checked if I hadn't seen your post here. 

K_S

@mlaf Well other than the fact that the rate isn't fixed, there is no catch

It's a cracking product and one that I often recommend to clients who need temporary flexibility with a great rate. Until recently they didn't offer low-LTV trackers so you had to pick a slightly higher rate but they have come out with new low-LTV products in the last few weeks so it's even better than before.

mlaf

Thanks, everyone. Went for it. Very pleased.