Fixing mortgage?

GabbyR

Hi I’m currently off work on adoption leave and I’m on base rate mortgage with nationwide. January I was on 2.1% and looked at fixing but was told I would loose access to my overpayments of £20k so I left it alone. Now I’m up to 3.25% and to be honest I don’t understand my monthly payments haven’t increased. I’ve only got about 7.5 years left on the mortgage but I don’t know if I should fix or just leave it as until I return to work I'm not sure I want to risk loosing access to the overpayments if I need to stop work as little one has potential additional needs and may not want me working. Sorry for the long post.

dimbo61

So how much is still owing on the mortgage ?
Smaller the debt the less important the Interest rate 

GabbyR

Only £31k left to pay, I had a good deposit and overpaid for a number of years 

K_S

GabbyR said:

Hi I’m currently off work on adoption leave and I’m on base rate mortgage with nationwide. January I was on 2.1% and looked at fixing but was told I would loose access to my overpayments of £20k so I left it alone. Now I’m up to 3.25% and to be honest I don’t understand my monthly payments haven’t increased. I’ve only got about 7.5 years left on the mortgage but I don’t know if I should fix or just leave it as until I return to work I'm not sure I want to risk loosing access to the overpayments if I need to stop work as little one has potential additional needs and may not want me working. Sorry for the long post.

@gabbyr The answer to your question will depend on the numbers, your income, any savings you have, your attitude, etc. but the Nationwide BMR (at 3.25% vs Nationwide SMR at 4.74%) is a really good variable rate to be on and if you switch to a new product, you're probably going to lose that, in addition to use of the overpayment reserve.

GabbyR

K_S said:

GabbyR said:

Hi I’m currently off work on adoption leave and I’m on base rate mortgage with nationwide. January I was on 2.1% and looked at fixing but was told I would loose access to my overpayments of £20k so I left it alone. Now I’m up to 3.25% and to be honest I don’t understand my monthly payments haven’t increased. I’ve only got about 7.5 years left on the mortgage but I don’t know if I should fix or just leave it as until I return to work I'm not sure I want to risk loosing access to the overpayments if I need to stop work as little one has potential additional needs and may not want me working. Sorry for the long post.

@gabbyr The answer to your question will depend on the numbers, your income, any savings you have, your attitude, etc. but the Nationwide BMR (at 3.25% vs Nationwide SMR at 4.74%) is a really good variable rate to be on and if you switch to a new product, you're probably going to lose that, in addition to use of the overpayment reserve.

Thanks when I got the mortgage I was on 5.4% and went on to base rate so in my head I’ve got room for the interest rates to go up more before I start to get worried. I’m just conscious that if I return to work and little one can’t cope that I will have to drop more hours and may need the overpayment reserve. I’ve got a good job and a decent amount of savings. It sounds daft that I don’t understand why my payments haven’t gone up with the interest rates not that I’m complaining.