Nationwide £500???

Englishedith

Hello from a newby
Nationwide want to charge £500 for us to take up a nother fixed rate term when the current one ends in july..

Is this a bit over the top?
I would be grateful for any advice.

Englisedith

PBA

Englishedith wrote: »

Hello from a newby
Nationwide want to charge £500 for us to take up a nother fixed rate term when the current one ends in july..

Is this a bit over the top?
I would be grateful for any advice.

Englisedith

Whether it's over the top depends on how good the rate is. There's always a trade off with fixed rates, you can pay a higher fee to get a lower rate, or pay a low fee (or no fee) but the rate would be higher. £500 certainly isn't a high booking fee, there are certainly other mortgages out there with booking fees over £2k.

tanith

Nationwide do a 2yr and a 5yr fixed rate with NO reservation fee but the rates are higher than those with the fee...

Depends on what rate they are offering you?

greatsite_2

I just got a five year without paying a fee.

_Andy_

Englishedith wrote: »

Hello from a newby
Nationwide want to charge £500 for us to take up a nother fixed rate term when the current one ends in july..

Is this a bit over the top?
I would be grateful for any advice.

Englisedith

No it's a very reasonable arrangement fee.

Your NW options are here

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

Englishedith

tanith wrote: »

Nationwide do a 2yr and a 5yr fixed rate with NO reservation fee but the rates are higher than those with the fee...

Depends on what rate they are offering you?

Hi Tanith,

They are offering a rate of 6. 18 over 3 years
Our mortgage finishes in 2011 so it has to be a 3 yr one...
it's annoying cause the £5oo we have to pay wipes out what's come of the total for the year we have a interest only repayment mortgage.
Just thought being an exsisting customer we would be offered a better deal.
What's your opinion?
Regards Englishedith

Englishedith

_Andy_ wrote: »

No it's a very reasonable arrangement fee.

Your NW options are here

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

Hi Andy link doe s't seem to be working Thankyou for your imput as well.
Edi

tanith

Well I guess as thats whats on offer for a 3yr fixed rate at Nationwide you either choose to stay with them and swallow the £500 or you could try negotiating with them not sure if that would work .. or start looking around elsewhere but as everyone is cracking down on their mortgages you might be hard pressed to find anything better I guess...

I did look at NW 2yr fixed but the rate was something like 6.58% but NO FEE... 'fraid I'm not clever enough to work out if that would be a better deal for you or not.... you would then have to renegotiate at the end of the 2yr deal of course...

dunstonh

Is this a bit over the top?

Not really. The lenders generally price in two ways. Either they transfer the profit to the arrangement charge and offer a lower rate or they have a lower charge and higher rate. Different people will be suited to either options. The higher charge can be the much cheaper option for some.

_Andy_

Englishedith wrote: »

Hi Andy link doe s't seem to be working Thankyou for your imput as well.
Edi

Hi

strange - works ok for me. You need to click on it rather than copy/paste.
Cheers

Englishedith

_Andy_ wrote: »

Hi

strange - works ok for me. You need to click on it rather than copy/paste.
Cheers

Andy,
My pop-up was blocking it have sorted it now
Will be going bac to see NW on thursday
The person we saw last week said if we take this deal we would have to start it a month before the exsisting one finfshes Did not know this was allowed ,,
Bet if it was the other way round we would have been unable to do this without incurring a penalty charge of some sort.
EDI,