A&L or Nationwide for my next fixed deal?

crankup

Currently on Nationwide svr at 5.99%. 54K mortgage with 18 yrs to go. Interest Only.

I'd like to take advantage of a 2-3yr fixed rate offer. The A&L 2 year Fixed Fee Saver looks suitable at 4.74%. My sums tell me this would be better for my circumstances than their 2yr 4.24% "with fees" deal. Do you agree?
This looks better than the current Nationwide offerings.

I'd like your opinions please on if you think this is a good choice for me to get a low 2yr rate. Any others I should consider with low fees and no overhang?

Thanks,
Crankup

Little_Miss_Winner

Hi,

I have just been to nationwides website to see which fee you mean?
Is it the £389 reservation fee (couldnt find the 4.24% though?)

I must add that I have been with the Nationwide since I bought my house 9 years ago. And have never had a problem with them. The staff are absolutely lovely, and will bend over backwards to help. I know that if its a choice between the staff or saving money, then saving money comes 1st. I am also on a fixed deal and will be getting another when it runs out.

Let us know which one you meant, and then maybe someone will come along with answers.

I will be watching this post with interest, as I also have £54k outstanding with 16 years to go.

Regards
pot

simonkirkland

The 4.24% crankup was referring to was the A+L rate not the nationwide...


Both mortgages are just as good as each other really but as you're already with nationwide you'd be best switching with them as they won't want to revalue the house (I don't think)

I have just taken out the A+L 4.24% 2yr mortgage and for me this was better than the fee saver options (126k borrowed). Just work out how much the deal would cost over the fixed period including all monthly payments and fees. That's what I did and A+L turned out better as I get an extra £250 cashback for being a premier plus customer...

Simon

payless

whilst not recommending a particular lender or propduct type

at this loan amount its very close between the product you mention and the 2 Natwide (in house swap) 2 yr fixes available ( also some other lenders would come close)

Moving to another lender does mean you will likely eventually pay 2 lots of account closing fees, so likely throws balance towards in house swap and it easier

Innys

Just checked and on A&L mortgages they charge interest on a monthly basis :eek: - Nationwide charge daily.

On the other hand, A&L allow overpayments of any amount, Nationwide allow up to £500 per month before they start hitting your a n early repayment charge... :mad:

It depends which of these two you are most worried about.

payless

A&L overpayments vary between products - usually 10% pa , (but strange January rule)

monthly interest is not that bad - if you pay monthly

crankup

Thanks for the many replies - I hadnt thought about hard about all the fees involved. Staying with Nationwide does look like the way forward for us.
Overpayments aren't high priority, not with our 2 youngsters to fund as well!
Thanks again,
Crankup

MarkyMarkD

payless wrote:

A&L overpayments vary between products - usually 10% pa , (but strange January rule)

monthly interest is not that bad - if you pay monthly

Absolutely. Daily interest is over-blown as a concept - if you pay monthly, at the end of each month, monthly interest is exactly the same as daily interest.

It only makes a difference if you choose to pay your monthly instalments early in the month, or frequently make small over-payments early in the month.

With most lenders, the interest bearing balance is recalculated if you over-pay by a certain amount - £500 for A&L - in which case daily/monthly once again makes no difference at all.

Re the overpayments, the 10% pa rule (in January) applies to fixed rates and there is (normally) no limit on overpayments on discounts/trackers.