Remortgage now or wait?

nh101

My tracker mortgage with Nationwide comes to an end on August 1, so I was planning to remortgage as soon as I could (three months before - May 1). But tracker deals are not so inviting at the mo. Are they likely to get better by August or worse? Shall I hang on and remortgage nearer the time or secure something now?

ThriftyBeanie

Here is my tuppence worth.

Over next 3 months or so, BoE base is probably more likely to fall than rise. However, the credit crunch will continue to bite and so the differential between BoE and LIBOR (basically the rate at which banks borrow from each other, and therefore the true cost of money to the banks) will widen. That means the banks will increasingly become unable to offer low margin BoE trackers.

So I would say, see what you can get now, and if it's within your affordability range, take it. If you want a tracker, get a BoE tracker, NOT one that tracks the lender's own base rate.

payless

their base is 6.49 ( from 1/5/08) , and should have no ties. Depending on your loan size/ effects of fees you might be able to secure a much lower tracker that also has no ties... so still keeping your options open, of course if you need security of fixed rates.. then one should consider current deals , as no guarantee as to what might be on offer latter