Was this advice 'a valid point'

papi34

Hi

I currently have 4 months to go on a 2 year fixed rate with Nationwide (4.96%). My FA that I have used in the past is suggestion I drop onto Nationwide's SVR (currently 6.49%) given current Fixed Rates are expensive.

Does this sound like a valid point? I know the Nationwide have one of the lower SVR

I have 20 years left on a £100k mortgage and have plenty of equity on my property.I would consider a tracker as we can live with some fluctuations but would prefer fixing for a maximum of 3 years.

Any thoughts or comments would be welcome

Josepina

What about their 3yr fix @ 5.75%, costs £600? I thought was not bad deal?

Dan_Collins_2

Nationwide have stopped people taking the SVR (New clients) as it was one of the best fee free deals with no ERC. Its not a bad tracker as it has no ERC's but it depends if you need stability or not.

Tiddler_2

They've stopped brokers using their SVR but not direct customers.

I think they are concerned with people being advised to switch to a deal with no penalties, for a short period of time and then remortgaging again. No doubt going direct they will be encouraged to go on a lower rate with tie-ins.

Halifax did a similar thing with product transfers as brokers were using it to put someone on temporarily, whilst remortgaging away, and getting paid twice.

However, for the OP's point, if you are telling the adviser that you want the certainty that your payments won't increase, they shouldn't be recommending a standard variable rate, because they should be advising on YOUR needs not on what they think will happen to rates (though they should discuss that with you)

payless

If on a fixed with them, then regardless to broker or direct , surely he will get SVR by default

If its fixed you ned, then its dangerous to wait

If you want value/ flex can can afford if rates go up , then there are possibly other no tie trackers from other lenders