Decision help please! BMR or switch?

Combleforth

Hi all, hoping I could gain your opinions on this to help me make a decision please!

Currently on a BMR mortgage with Nationwide- 12 years left, £60k remaining. The interest rates have increased the monthly payment to £565 this month, and the recent financial news means it'll increase further next month.

I've looked into switching to a fixed rate- the best offer looks to be for 5 years at £562, and would reduce the term to 11 years (as desired).

If I switch from the BMR I can't go back after the 5 years fixed term has expired.

The sticking point for me is of course whether the interest rate will increase further, or start to decline. Obviously this can't be precisely predicted, but what would you do in this situation??

Thank you in advance!

Combleforth

Combleforth

EDIT: current BMR rate in 5.5%, and the 5 year fixed in question is 4.34%

Grottie_2

Hi,

I am also with Nationwide and on the BMR and thinking whether it’s time to switch, currently just gone up to 6% and I could get a fixed for 5 years for 4.09% but I’d really like to know if people think interest rates are going to continue to go up or back down.  The BMR has always worked out the cheaper option - 2.10% Jan 2022 !

thanks 

picky123

You have to remember that BMR at 2% plus base was never envisaged as being a cheap product, it just so happened that base hit historic lows. 

In hindsight, interest rates were to low for to long, whilst it might come back down a little, base of 0.1 or 0.5 is long gone, which in the grand scheme of things is probably not a bad thing.

housebuyer143

Grottie_2 said:

Hi,

I am also with Nationwide and on the BMR and thinking whether it’s time to switch, currently just gone up to 6% and I could get a fixed for 5 years for 4.09% but I’d really like to know if people think interest rates are going to continue to go up or back down.  The BMR has always worked out the cheaper option - 2.10% Jan 2022 !

thanks 

Honestly though in Jan 22, 2% was not a really cheap rate, there were sub 1% rates going. I would get off BMR as its not really meant to be a good rate to sit on. If you want flexibility go with a ERC free tracker, its much cheaper than BMR that you are on but can go up and down.