remortgage with no reservation fee

blackbird_2

My mortgage with nationwide is coming to an end next month. It's for £30,000 and in 2.5 years 9,000 should be paid off by endowment policy.

This is what nationwide has offered me and wondered what you thought. Since its a fairly small mortgage they suggested paying a higher interest and no reservation fee:

2 year fixed 4.79%
3 year fixed 4.99%
5 year fixed 5.09%
2 year tracker 4.94%
3 year tracker 5.09%

Thanks

payless

the fee otheriwse is £389

paying the fee will give a lower rate

on fixed 0.4% lower

on trackers - I think they/ you are not including the recent 0.25% drop as I believe its
4.69% on 2 yr

( 0.2% less if you pay the fee)

So unless you want the 5 yr fixed , its best to go no fee route

Worth checking if on the longer deals they will accept the lump sum in 2.5 yrs without penalty ( not standard practice, but some allow it if its from an endowment that you adviseup front)
otherwise would have thought 2 yr deals are most suited in your case