should I stay or should I go

steedman

my nationwide mortgage is currently coming to the end of its deal and is about to revert back to their SVR, my mortgage amount is about £33K is it worth looking around given the cost of remortgaging?

YorkshireBoy

It's ALWAYS worth searching out a better deal.

First port of call is to ask Nationwide what they can offer you to stay with them, and ask them to tell you how much it'll cost you - if anything.

Secondly, search the comparison websites via the link below...

http://www.moneysavingexpert.com/mortgages

Ian_W

YB beat me to the punch. :rolleyes:

Always worth checking - this MSE site after all - but NW do have some good rates with low fees ATM. When checking others always factor in fees, they do make a difference with a smallish mortgage like yours, so lowest rate may not be cheapest deal. BoL.

BFJ

I'm not so sure it will be worth moving (obviously dependant on rates Nationwide have)

I have a mortgage of £50000, coming to the end of fixed rate period, with Newcastle Building Society. They have offered a discount of 1.6% for 3 yrs, currently making 4.92%. Thinking I could do better elsewhere I have looked around a number of comparison sites, and contacted L&C. Best they could come up with was 4.55% (no fees), but this still only makes a difference of about £10 a month (over 15yrs). When you factor in the £175 it will cost to leave Newcastle, and that 'no fees' doesn't strictly mean no fees, as there are some legal fees, and sealing fees, totally about £100. It doesn't actually make a great deal of difference (over the 3 yr period), and it is a hassle to change.

Bear in mind your mortgage is only 33000, I would be surprised if you save much cash, if any.

It is worth seeing if Nationwide will do any better. Have tried this with Newcastle, but they're not budging. They have better rates but I still have to pay completion fee (£395), but am waiting for new rates as they may be completion fee free


P.S. Chase de Vere website: https://www.cdvmm.co.uk have calculator for working out monthly repayments. Useful with repayment mortgage enquiries

payless

Would the monthly saving really be over 15 yrs or just 2/3 yrs , as the new lender might have a higher SVR and whats there history on offering new deals

I would always get clients to consider existing lender's renewal deals in the comparisons - rather than just recommend the best "new lender" - one should always check that their adviser is doing this also

LouLouHelen

Everyone I know with a Nationwide mortgage has said they have ended up staying with the at the end of their rate because they are offered such good rates.

payless

Can't remember the last time I recommended remortgaging away from them !

BFJ

Sorry, should have been clearer. The saving was based upon a mortgage over a 15yr term. However, I only consider the viability of remortgaging over 3 years, hence a £10 saving over 3 years (360) doesn't really outweigh the costs of moving to another lender. Would always look again towards end of deal to assess what's best deal at that time.

payless

so did they actually recommend you went with a new deal or advise you to stay put ?

BFJ

They've sent me all the stuff to move it. Have to say, not overly impressed with L&C. They know the deal I was offered, and still suggest the move. They also didn't actually find me the best deal, as I found one with Market Harborough on same terms, but with no early repayment charges.

So, I'm a bit stuck really. Will wait to see if Newcastle bring out any fee free deals before my rate runs out at end of October. If not I'll have to take their first offer, which is something I never like to do........