Nationwide Trackers

Dick_here

Their 2 year Tracker is currently 6.38%, the Lifetime Tracker is 6.18%. Neither have an initial fee, and both allow a switch to a Fixed at any point without early redemption penalty. Am I missing something or is there no reason at all to choose the 2 year Tracker ?

sniperpenguin

Do they both have the same LTV? Do you have links to both these offers?

Ive just taken up the Nationwide 2yr tracker via an IFA - setup fee was £599 and max LTV was £95.... maybe the lifetime one requires a lower LTV and therefore a larger deposit

(like the popular First Direct offer thats around at the moment, but requires 10% deposit therefore 90% LTV)

Dan_Collins_2

!!!!!!_here wrote: »

Their 2 year Tracker is currently 6.38%, the Lifetime Tracker is 6.18%. Neither have an initial fee, and both allow a switch to a Fixed at any point without early redemption penalty. Am I missing something or is there no reason at all to choose the 2 year Tracker ?

Just different pricing, some lenders do some strange things but in two years you will have to change and they may get the money back, the term keeps on going, long term money seems to be cheaper at the mo.

payless

the difference is more in the tie to lender ( rather than rate, as both allow swap to fixed)

2 yr early redemption penalty 1.5% within the 2 yrs
Lifetime 3% within first 5 yrs

Dick_here

payless wrote: »

the difference is more in the tie to lender ( rather than rate, as both allow swap to fixed)

2 yr early redemption penalty 1.5% within the 2 yrs
Lifetime 3% within first 5 yrs

But those penalties don't apply if you switch to fixed with them.

And if you're booking a Lifetime Tracker, you're already pretty sure you're not going to switch lenders !

Dick_here

sniperpenguin wrote: »

Do they both have the same LTV? Do you have links to both these offers?

Ive just taken up the Nationwide 2yr tracker via an IFA - setup fee was £599 and max LTV was £95.... maybe the lifetime one requires a lower LTV and therefore a larger deposit

http://www.nationwide.co.uk/mortgage/existingcustomers/tracker_interest_rates.htm

Both 2yr and lifetime trackers require a 10% deposit - easy for a re-mortgage - and there is no fee if you switch to a fixed rate within the tracker period. So is there a reason to take out the 2yr when it is .2% higher ?

kingkano

!!!!!!_here wrote: »

http://www.nationwide.co.uk/mortgage/existingcustomers/tracker_interest_rates.htm

Both 2yr and lifetime trackers require a 10% deposit - easy for a re-mortgage - and there is no fee if you switch to a fixed rate within the tracker period. So is there a reason to take out the 2yr when it is .2% higher ?

Your going to move at the end of 2yrs?

You don't want to be tied into a lender for 5yrs?

Those would be good reasons why some would not take the lifetime tracker. There is bound to be many more.