1% ERC -ditch and switch Nationwide Mortgage.

Dandytf

Is it worthwhile paying 1%  erc's to ditch and switch via Nationwide.
31998
9yrs 9mths
1% 320 erc's approx.---Edited----483.58 1.5% until July '22

1.5% after calling Nationwide today.

1.74% -I can switch from late Jan or Feb 2023.

e.g. 5 yrs Fix 3.14%
erc's 3.5%

Hopefully to avoid next near term rate rises.
I've booked vid appt early July to consider this switch.
Is it wise to switch from 1.74 to 3.14 to possibly avoid further base rate rises over 5 years.

thanks

simon_or

If it's only a 32k balance I'd be tempted to just leave it as it is and overpay off as much as I can without an ERC until the end of the fix next July.

Dandytf

thanks only considering switching to avoid return to 4/5% range any sooner than required.
I'll keep not switching as gen option, not sure what that means from Feb'23.
Todays tel advisor advised svr is currently 4.24% though switch screen online states 4.49.
I can reserve from Feb to another mortgage, avoiding erc's though new product wont start until July '23.
I cant help thinking there's a number of rate rises in upcoming months.

thanks appreciated.

julicorn

It doesn't seem worth it for such a small mortgage balance. Even if the rates went up to 5%, it looks like you'd be paying around £50 more a month than you are now. So you're essentially considering whether to pay £320 now plus ~£20 more a month (so around £460 total until end of Jan?), to save you from potentially having to pay £30 more a month from next year (compared to the rate you can lock in now, and with no guarantee that rates will rise to 5%).
I'm with Simon on this one and would just overpay (within your limits) if it's causing you stress. 

Dandytf

I agree as I understand that I had until Natwide reaches 5% then my current overpayments are wiped.
I'll take vid call anyway no idea why this appt. takes up to 1hr30mins.
It could help that I'm not eligible for standard insurance type policy's though that's another consideration.

thanks
 

Sncjw

But the issue is this person probably can't afford overpayments espically with his credit record. 

Do they know you have reduced your income too. 

Dandytf

Sncjw said:

But the issue is this person probably can't afford overpayments espically with his credit record. 

Do they know you have reduced your income too. 

Which person.

Dandytf

Re scheduled appt. Weds 6th July.
Looking forward to Mortgage 'options' 

Dandytf

Whilst I appreciate responses to my latest post.
Nationwide video call complete today via iPad.
Ive agreed to switch from 1.74% (11 months)
Switching to 3.4% 9 yrs 8 mths 320 approx.-700 more expensive over 11 months. Inc' 239 erpc
5 yrs fix erpc 5/4/3/2/1% per year.
Though initially more expensive, I'll enjoy watching if rates increase particularly next year and beyond.
One new consideration is now that I have 487 quoted as mid 50's cost to complete.
I'm 49 maybe I should consider making savings from outgoings or reduce ISA monthly savings to nearly half mortgage term and over 2k interest.

thanks