Nationwide fixed 10 year deal

MarkyMarkD

Woby_Tide wrote:

Nationwide Base Rate is 5.99% which is pretty much daft if you can get the 2 year fixed without a fee at 4.94%

you really need to consider cost of the reservation fee fix v no reservation fee fix

i.e. rough figure is 55000 * 0.2%(i.e. difference in interest rates) * 2 which is around £200, just as well taking the no reservation ones

Nationwide have a quick calculator which shows the mortgage cost for each of their deals if you plug in a couple of figures, you can see that way from the monthly payment just how much the difference will be over the 2 years

http://www.nationwide.co.uk/mortgage/tools/quick-quote.asp?page=inputScreen&mis=brick&mediated=no

It's 2 year TRACKER not FIXED at 4.94%, but your comments stand apart from that. Nobody would sensibly pay Nationwide's SVR unless they were going to redeem during the 2 year tie period.

MABLE

cfc125 wrote:

may be worth paying the £389 fee and getting the ten year rate of 4.89%

I have decided to go for the 10 year fix but on checking my figures my outstanding mortgage is £66000 and would like to clear in the next 10 years.
Also have gone for the 4.89 percent. Can anyone please advise what additional payments I need to make to clear in this period.

Thanks,

MortgageGenie

Mable, the amount you need to overpay by depends on the term you've currently structured your mortgage over. Do an illustration over 10 years then you'll know what you should be paying to clear your mortgage over the 10 years and you can then adjust your payments accordingly.

On a separate note, I believe Nationwide are lowering their 2,3,5 years fixed rates tomorrow. By 0.10%.

meanmachine_2

I think the Cheshire allow you to fix now for 4.5% over 2,5 and even longer periods.

However, Cheshire appear to have quite strict lending criteria - no more than 3.25x income.

Not suprised that Nationwide are revising downwards to compete.

doodle_bug

Don't forget it is only very very recently that Nationwide have given us the choice to re-mortgage to a cheaper deal and not pay an arrangement fee. I have only just changed from the BMR to a tracker even though I re-mortgaged last year. I've gone for a 3 year w/o res fee which is 5.19%.

It looks almost certain that rates are going to fall next month so it doesn't seem the best time to go for a fixed rate deal.

Jo_anne_2

MortgageGenie wrote:

On a separate note, I believe Nationwide are lowering their 2,3,5 years fixed rates tomorrow. By 0.10%.

I heard this too - the 2 yr fixed rate with reservation fee for example will be 4.39% from 12 July. So if the mortgage industry is confident to fix low rates, is it best to go for a tracker?

MarkyMarkD

It's not the mortgage lenders' confidence about future rate decreases, but the money markets'. But that said, the consensus is that rates are going to fall.

As I often say, all things being equal, it should make no difference over the term if you fix or not. The only way you'll gain or lose is if the markets' projections of interest rates are wrong - which they will be more often than not!

Scott

Well, the BoE chaps pretty much said in their last statement that they'll be coming down this month or next, which seems to have prompted a bit of a flurry of activity from the banks.