Mortgage question ?

Paranoid Carlos · 27th March 2009, 17:47

Hi all as the recession is starting to felt in this household, need some advice.

At the moment my fixed rate repayment is at 6.4% (with nationwide) coming to an end about July my mortgage payment is round about £420 a month there tracker rate has now come down to 2.5% would like to stay with nationwide as touch wood they have been very helpfull over the last 10 years.

Basically getting confused about what sort of a saving I gain going from one rate to the other.

Dan1971 · 27th March 2009, 18:27

Any savings would depend on how much your mortgage is for.

Departed · 27th March 2009, 18:28

Know you want to stay with Nationwide but Smile bank (www.smile.co.uk) have a mortgage calculator on their website, so you could put details (capital amount, term, interest rate) in and get it to tell you what would change.

Personally, wouldn't touch NW with a bargepole after they lost my settlement cheque on a mortgage and threatened me with repossessing a house I no longer owned.......

pondweed · 27th March 2009, 18:34

just scrutinise whatever you are looking at for the proper APR after costs/fees have been taken into account. This figure should also be given with all promoted rates.
These make for easy comparision irrespective of your actual loan - but you need to make a guess about where rates are heading before potentially wasting money fixing. The good thing at the moment is that they cant really get much lower, so it might be good to fix again, or hang variable for a while until the depression really hits.

lady zed · 27th March 2009, 19:25

Quote:

Originally Posted by Paranoid Carlos

Hi all as the recession is starting to felt in this household, need some advice.

At the moment my fixed rate repayment is at 6.4% (with nationwide) coming to an end about July my mortgage payment is round about £420 a month there tracker rate has now come down to 2.5% would like to stay with nationwide as touch wood they have been very helpfull over the last 10 years.

Basically getting confused about what sort of a saving I gain going from one rate to the other.

You're going to see a big saving come July! If you do nothing you'll automatically go onto a variable rate mortgage which at the moment is cheap as chips as interest rates are so low. When things start to creep up, as they will eventually, you should look about about and see who's offering the best deal at the time. Provided you have no issues in getting a mortgage, shop about, all's fair in love and money. Any arrangement fee can be added onto your mortgage, and to be honest I'd be looking to go onto another fixed rate quite quickly while it's possible to get a low rate.

See what Nationwide offer you, they might come up with a good deal tp keep your business.

eskezz · 28th March 2009, 08:52

Try 'moneyfacts' website-tend to be the best independant comparison site IMO. Just arranged a mortgage for my daughter thru Loughboro' B S and we live in the North West from info on their site. Don't stick with the Nationwide out of loyalty-they are bringing in charges for using cards abroad and some of their recent savings rates for existing customers have been very poor to say the least. Becoming less of a mutual as time goes by.

Dan1971 · 28th March 2009, 14:53

Well ... I'm stuck right now in a fixed rate ... Quite high in comparison, but the press yesterday warned of a shock rise in the near future.

Make sure that whatever you get suits your needs. I decided to fix mine and so know for sure what I'm paying is affordable for the best part of 10 more years, at which point it'll be paid off.

Don't tie yourself in unless you're happy.

G9 RAC · 31st March 2009, 23:37

Paranoid Carlos you have a pm.

Paranoid Carlos · 1st April 2009, 20:42

Cheers mate, thanks for reply

moonstoneboy · 2nd April 2009, 06:46

My mortgage provider informed me last March that in September my tracker was coming to an end. I acted there and then and decided on a fixed rate. The interest rates then rose and I felt quite smug. Now the rates have fallen away and if I had chosen another tracker I would be quids in. However, it is always a gamble - if rates shoot up and some are predicting this then a tracker will suddenly be expensive compared with a fixed rate, especially some of the fixes on offer now.

How much of a gambler are you?

Paul

27th March 2009, 17:47	#1
Paranoid Carlos Posted a thing or two Starlight CDT Conn SE Join Date: Nov 2006 Location: Erdington, Birmingham Posts: 1,057 Thanks: 0 Thanked 0 Times in 0 Posts	Mortgage question ? Hi all as the recession is starting to felt in this household, need some advice. At the moment my fixed rate repayment is at 6.4% (with nationwide) coming to an end about July my mortgage payment is round about £420 a month there tracker rate has now come down to 2.5% would like to stay with nationwide as touch wood they have been very helpfull over the last 10 years. Basically getting confused about what sort of a saving I gain going from one rate to the other. __________________ [SIGPIC][/SIGPIC]

27th March 2009, 18:27	#2
Dan1971 Avid contributor MK2 ZS180 hatch Join Date: Jan 2009 Location: High Wych Posts: 159 Thanks: 0 Thanked 0 Times in 0 Posts	Any savings would depend on how much your mortgage is for. __________________ If you can keep your head while all around you lose theirs, you really have no idea what is going on.

28th March 2009, 14:53	#7
Dan1971 Avid contributor MK2 ZS180 hatch Join Date: Jan 2009 Location: High Wych Posts: 159 Thanks: 0 Thanked 0 Times in 0 Posts	Well ... I'm stuck right now in a fixed rate ... Quite high in comparison, but the press yesterday warned of a shock rise in the near future. Make sure that whatever you get suits your needs. I decided to fix mine and so know for sure what I'm paying is affordable for the best part of 10 more years, at which point it'll be paid off. Don't tie yourself in unless you're happy. __________________ If you can keep your head while all around you lose theirs, you really have no idea what is going on.

1st April 2009, 20:42	#9
Paranoid Carlos Posted a thing or two Starlight CDT Conn SE Join Date: Nov 2006 Location: Erdington, Birmingham Posts: 1,057 Thanks: 0 Thanked 0 Times in 0 Posts	Cheers mate, thanks for reply __________________ [SIGPIC][/SIGPIC]

27th March 2009, 18:28	#3
Departed Retired -- Join Date: Jan 2007 Location: -- Posts: 3,785 Thanks: 0 Thanked 4 Times in 4 Posts	Know you want to stay with Nationwide but Smile bank (www.smile.co.uk) have a mortgage calculator on their website, so you could put details (capital amount, term, interest rate) in and get it to tell you what would change. Personally, wouldn't touch NW with a bargepole after they lost my settlement cheque on a mortgage and threatened me with repossessing a house I no longer owned.......

27th March 2009, 18:34	#4
pondweed This is my second home Waiter, Waiter! I seem to have a Roomster in my drive... Join Date: Nov 2006 Location: Sussex Posts: 3,268 Thanks: 0 Thanked 1 Time in 1 Post	just scrutinise whatever you are looking at for the proper APR after costs/fees have been taken into account. This figure should also be given with all promoted rates. These make for easy comparision irrespective of your actual loan - but you need to make a guess about where rates are heading before potentially wasting money fixing. The good thing at the moment is that they cant really get much lower, so it might be good to fix again, or hang variable for a while until the depression really hits.

28th March 2009, 08:52	#6
eskezz Loves to post rover 75 saloon Join Date: Oct 2008 Location: st helens Posts: 261 Thanks: 0 Thanked 1 Time in 1 Post	Try 'moneyfacts' website-tend to be the best independant comparison site IMO. Just arranged a mortgage for my daughter thru Loughboro' B S and we live in the North West from info on their site. Don't stick with the Nationwide out of loyalty-they are bringing in charges for using cards abroad and some of their recent savings rates for existing customers have been very poor to say the least. Becoming less of a mutual as time goes by.

31st March 2009, 23:37	#8
G9 RAC Newbie MG ZT Join Date: Feb 2007 Location: trumpton Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Paranoid Carlos you have a pm.

2nd April 2009, 06:46	#10
moonstoneboy Posted a thing or two Rover 75 Connoisseur SE CDT Tourer - naturally in Moonstone Green Join Date: Oct 2007 Location: Surrey - near Gatwick Airport Posts: 1,316 Thanks: 0 Thanked 3 Times in 3 Posts	My mortgage provider informed me last March that in September my tracker was coming to an end. I acted there and then and decided on a fixed rate. The interest rates then rose and I felt quite smug. Now the rates have fallen away and if I had chosen another tracker I would be quids in. However, it is always a gamble - if rates shoot up and some are predicting this then a tracker will suddenly be expensive compared with a fixed rate, especially some of the fixes on offer now. How much of a gambler are you? Paul