Nationwide seem to have followed suit and dropped their rates following the recent interest drop. Now at 2.69% with a £999 fee or 2.79% no fee. LTV is 60%. May be of interest for existing customers who would rather stay with Nationwide. Will let you figure out what works best for you!
Top comments
MarkShopper
15 Aug 1611#7
Nationwide are very good for mortgages. Rather than doing a long term fix, consider a shorter term deal with a much lower interest rate. The money you save can be paid off the mortgage as overpayments, reducing further the interest you will end up paying.
LurkingLawyer
15 Aug 1610#1
They really are trying to get people off that 0.5% above base rate, aren't they....?
Not tempting enough to make me give it up just yet.
cbrpaul to MarkShopper
16 Aug 164#29
Great advice , i tied into a 5 year fixed 2.5 years ago , but overpaid as much as I could during that 2.5 years, i can now pay it off fully if i so wish , but I will get smashed with a £3000 ERC !!
So I will pay 99% of it off and pay £10 a month on £500 outstanding for the next 2.5 years to avoid the ERC :sunglasses:
crumpetman to LurkingLawyer
15 Aug 163#5
I thought I was doing well with base rate plus 1%.
Latest comments (62)
ran123ran
29 Sep 16#62
The rate now is lower at 2.59/2.69
Tomskie
18 Aug 16#61
Sounds like an interesting deal from Coventry building society, I haven't come across another that matches it.
JJBDude
17 Aug 16#60
There's better deals at 60% LTV though right? Probably isn't much better though to be fair.
Ultimately I want to pay the least amount of interest as possible and getting a 10 year deal will always result in spending more on interest. Keep up the overpayments and I doubt I will ever be worse off as even if interest rates do rise it will surely not counter out the interest I saved over getting a shorter deal (and subsequently knocking more off on the capital I owe).
ukscoob1
17 Aug 16#59
We're not leaving the EU for at least 2 years. Fact.
New builds in and around Plymouth have actually pushed up house prices of those surrounding over the last 5 years as they've improved the area with the new development - so yours may not drop at all.
Do nothing and wait and see is safe. If I wasn't just getting on the ladder (and have been trying to for a year) I would potentially wait, but I'm not going to after all this effort so far.
Good luck to you! Rates from lenders will only get lower for the next year or so. Base rate may even get cut to 0% if it all looks gloomy and then it'll be even better rates.
2 years + who knows but by then I will be switching to a new mortgage if I haven't already so future me can deal with that then.
wild_quinine
17 Aug 16#58
You do understand that your interest rate can't actually get much lower than this, right? And that you can't go back in time and pay less for your house either?
I'm not saying there will be no better deals, because I think we might see this one pipped yet, but there's not going to be much in it: the deals literally cannot get significantly better without there being no point in lending you the money, so there really is no great risk of missing out by fixing in now.
FTOdude170
17 Aug 16#55
don't you just love the oh so helpful comments 'I'll just stick with my base rate plus 0.0045% I don't pay anything'. lol. yes I'm jealous, but what would be helpful is how you get such a deal. is that the bang for buck you get going with a broker? put your money where your mouth is and prove it, help the rest get such a deal! gggrrrrr
mike_6480 to FTOdude170
17 Aug 16#57
Most of them are historic deals from when interest rates were higher. I think Woolwich (now part of Barclays) did a lifetime tracker at such a rate many years ago (could be 10 years or so ago). Just because someone has quoted a rate doesn't mean its still available - particularly it its a lifetime tracker.
I agree stating something that's not available isn't helpful though
ukscoob1
16 Aug 16#50
Why would you fix now? Rates arent going up anytime soon. I've just opted as a FTB for a 2 year 1.7% variable tracker no fees at all and can switch to fixed at anytime IF I decide I need to within those two years. Each to their own situations though obviously.
FTOdude170 to ukscoob1
17 Aug 16#54
is that the HSBC tracker for life?
afly to ukscoob1
17 Aug 16#56
It's not just about the interest rate though. We are (supposedly) about to leave the EU and they've just commissioned 7,000 houses to be built on my back door. It's possible my house might be worth significantly less in the next few years than it is now and that may put me out of reach of the LTV needed to get these rates.
It's all a bit of a gamble no matter which way you try and play it :neutral_face: So far it's the bat sh*t crazy do nothing approach* that's proved the most successful
*of which I am a member :smile:
baggyjim
16 Aug 16#53
Think I will stick with my 0.14% above base rate tracker.
Spedley
16 Aug 16#52
This is great, thanks.
I had plans to remortgage and extend my house in about 18 months but after the Brexit vote things are just too uncertain. Ok in the short term but a year from now I have no idea how things will be.
Although I can't take this option (I want about 80-90% LTV) the rates for 10 year fixed terms are better than I'd expected - enought time for my circumstances to even out.
Hopefully I can keep my current 0.5% above base rate tracker and get a 10 year fixed on the rest. That would be affordable and secure.
JoeBoy88
16 Aug 16#51
Thank you.
I believe the decision is made based on your incoming and outgoing payments and not necessarily just your wage.
We did a mortgage calculator online to give us a rough idea of what we could borrow.
jackvdbuk
16 Aug 161#25
what happens after a 2 year fix though? if the base rate goes up to 5pc its unlikely i could afford such a jump possibly.. and the long term fixes will be even higher interest rates i guess..
is it not better to know exactly what the mortgage payments will be for 10 years?
when you re-mortgage can this be expensive doing it every two years? can you be declined possibly? can they mortgage less or more of the value of the property? or is it based on the original mortgage price?
sorry for the silly questions!
mike_6480 to jackvdbuk
16 Aug 16#26
Martin Lewis produces a useful guide to re-mortgaging. Can download as a PDF and can also request a free printed copy through the post:
Go and speak to a broker, my guy is so fantastic he helped me out loads. I will try answer a bit though.
If you take a 10 year mortgage you will spend thousands of pounds more on interest. My ideology is to get a cheaper and riskier 2 year deal and the money you save over if you took a 10 year one you should use as overpayments.
What will happen is even if worst case scenario interest rates do rise (I was told they would 2 years ago and they didn't) you will be able to get another 2 year deal in the future but at a lower Loan to Value thanks to the additional overpayments. So even though the interest rates on deals would have risen you'll now be eligible for a newer better deal plus will have less capital to pay off overall.
Also Nationwide allowed me to upgrade early (so after 1 year 9 months) which got me on to my cheaper 1.79% rate over my 3.64% rate 3 months early for some decent savings! I went from an 85% LTV deal to a 70% LTV deal which is a massive jump but thanks to house prices rising and my regularly overpayments I was able to do it and am really reaping the rewards now.
And once Nationwide get you as a customer you are a customer for life so I didn't need to have credit checks and all that mumbo jumbo done again. This is good as both me and my partner have reduced our working hours quite a bit and now earn less.
To summarise if you are savvy and smart with overpayments plus willing to take a bit of risk go for 2 year deals at a lower interest rate. If you don't mind paying extra and are satisfied with whatever the payment would be monthly for a 10 year deal then the security that brings may be the option for you. :smiley:
MarkShopper to jackvdbuk
16 Aug 16#49
That's the gamble, but you pay a heavy price in the short term at least by taking a long term deal. Especially if your LTV is above 60%, consider taking a short term deal and making overpayments as if your LTV falls it makes a big difference to future interest rates they will offer you.
If you stick with Nationwide, it costs nothing to take a new product after the 2 year initial period (assuming you go for a product with no fees). If you move banks, there may be some legal costs but I think these are usually free. It's generally based on your original house price, indexed up with the markets. A new provider might revalue however. I stick with Nationwide.
tcm216
16 Aug 16#45
I'm sure I must be missing something as TSB are offering me 2.29 % over 5 years or is that just because I'm an existing customer / is that not as good a deal as I think it is?
bobcoyle77 to tcm216
16 Aug 161#48
coventry 7yr fixed from 1.99% depending on loan to value. just come out today.
bobcoyle77
16 Aug 16#47
If this deal does tickle your fancy then check out Quidco and TCB as there is a route to earn upto £1000 cashback on this through a fee free broker. personally just signed upto Coventry 7yr at 1.99%
mp9
16 Aug 16#46
Stayed on base rate despite various offers for me to pay them more per month (plus a grand for the pleasure of setting up) and with a mortgage that was not that much and the low interest rates making savings pretty worthless have managed to pay it off. All these headline offers are fine if your mortgage is ££££££ but once you only want a mortgage for a smallish amount the headline offer is usually not available and they want a higher % rate per month
JoeBoy88
16 Aug 16#20
I have just taken out a tracker mortgage with nationwide.
1.44 + base rate for two years. No product fee plus £500 first time buyer cash back and £250 flexclusive cash back for having a flex account with them.
I think it is a decent deal and I do not see the base rate going up within two years.
Go on their site and search. Comparison sites did not show me the ones with no set up fees.
Cyrus to JoeBoy88
16 Aug 16#44
congrats.
how much x your base salary do NW give?
josephallen
16 Aug 16#43
I wouldn't say pushing somebody towards a worse deal is altruistic. The only reason for such advice would be that the particular product being suggested carried a significant commission with it for the broker.
dundeemaltman
16 Aug 16#42
250 quid cash back also........ for existing customers.
but I would wait till sept 1st new rates will be in place.
poolman
16 Aug 161#41
If UK interest rates go up in the next 5 years I'll eat Gary Lineker's boxer shorts........
tek-monkey
16 Aug 16#40
For those with a much higher LTV, anyone know if you can beat 2.1% variable on a 90% LTV?
I am just a normal guy not a mortgage broker etc. We got our first house in about 2011 and then moved in 2015. Your circumstances can change a lot in 10 years so just think carefully. We ended up paying to "get out" of our fix when we moved...it was transferable but on moving we got a rate under 3% and were on 5% before this. We lost in the sense it cost about 4k to ditch the mortgage, but as we purchased our first house in the housing slump we sold it for 20k more.
I agree the security of knowing your monthly payments is good however, I just think 10 years is a very long time.
dodgymix to Marky1987
16 Aug 16#39
I assume Mark the 1987 is the year of your birth.. Mines 1977 and the last 10Y has gone exceptionally fast lol
Anonbroker, "I would ADVISE anyone to.......
But then, "I am by no means giving any advice....." !!!!
Anonbroker
16 Aug 161#35
As a mortgage adviser, I would advise anyone to think very carefully before fixing your mortgage for 10 years. A lot can change in that time and early repayment charges can be painful. Always speak to a broker that has access to a fair panel of lenders, a couple of quid with an expert can save you a lot in the long run. Please note I am by no means giving any advice or recommendation by saying this.
thriftybugger
16 Aug 16#34
Before anybody commits to a 10 year deal please consider that Denmark are on negative interest rates for around 4 years now. And many people get interest rather than paying interest. Until that time I am good with my current mortgages.
ScorpioJonesy
16 Aug 161#33
If you are in the higher 70%+ LTV the 10 year is a bit long as price value of the house rising and the lower rates of shorter term smeans you could end up with a better LTV bracket mid term so miss out on better rates ergo pay a lot more over the 10
However 5 year and 10 (less so) can be great if you are thinking about starting a family as it is a pain to get a mortgage when you have to factor in kids and child care and the possibility of being on maternity while applying.
Tadpole78
16 Aug 16#15
Very tempted by this, currently on their smr (base +2%), but with only 10 years left on our mortgage (and no intention of moving) the security of this for the remainder of our mortgage is sorely tempting.
We did that 10 years ago at 4.9% and were quids in for 3 years..................... Did get 2 months at 2.4% before the end though.
FTOdude170
16 Aug 161#31
MarkShopper
15 Aug 1611#7
Nationwide are very good for mortgages. Rather than doing a long term fix, consider a shorter term deal with a much lower interest rate. The money you save can be paid off the mortgage as overpayments, reducing further the interest you will end up paying.
JJBDude to MarkShopper
16 Aug 162#9
Bought my house at 23 and despite the estate agents broker pleading with me to go for a 5 or 10 year deal for security I stuck to my guns and went 2 year with nationwide.
That 2 years has recently passed and thanks to mortgage overpayments (as you rightfully suggest) I signed up again for a 2 year deal at a cheaper rate which is working out to be £140 cheaper a month compared to when I got the house!
So personally I wouldn't go for this 10 year deal. I can understand the safety of it but it's just not for me.
cbrpaul to MarkShopper
16 Aug 164#29
Great advice , i tied into a 5 year fixed 2.5 years ago , but overpaid as much as I could during that 2.5 years, i can now pay it off fully if i so wish , but I will get smashed with a £3000 ERC !!
So I will pay 99% of it off and pay £10 a month on £500 outstanding for the next 2.5 years to avoid the ERC :sunglasses:
RedmanDealer to MarkShopper
16 Aug 16#30
I agree, the rates on the regular 3/5 year deals are just a bit too high to consider at this point in time as paying around 1% more than a 2 year deal due to the fear of the rate going out of control. The way things are going I cannot see the base rate go above 1% for a few years and 2% would probably put 100,000s of homes at risk.
Obviously, if your debt is relatively small where paying the booking fee costs quite a lot then it might be better to fix for longer. If you have 60% LTV then you have enough security to go with whatever is the best deal and overpay the difference you would've paid for a longer term fix. I saw a 0.99% 2 year fix for HSBC so well worth considering.
bztch4
16 Aug 16#27
Coventry have dropped their Flexx for Term variable rate to 1.50%. 65% LTV. No tie in/penalties. This seems like a pretty decent deal to me.
I bought my house with Thomas Morris and they "forced me" to have a meeting with their in house guy. So I assume he is still a broker although he was old school and had all the deals on paper compared to my other guy who I used that had it all on the internet and multiple screens for me to see too.
But yeah proper tried to sell me on a 5 year and maybe even as far as a 10. Also pushed hard for life insurance so I am assuming he would have got commission for both. Was quite frustrating really and a waste of my time but felt obliged to as Thomas Morris pushed me in to it. Have learnt my lesson now though.
Edit - Just thought maybe he didn't have any 2 year deals available. I had told him of the deal I was thinking of going with (2 years at 3.64%) and he was trying to get me on something that was like 5-7% but said it was a much safer option. But am now on 1.79% rate so I am so glad I didn't take his advise! lol.
wtrimm
16 Aug 16#22
2.49% available with Coventry which is surely a better deal if you want to be tied in for 10 years and they'll do 2.39 for a 50% LTV. Also the 1.99% fixed for 5 years with HSBC is worth thinking about if 10 years seems too long for you.
cromarty
16 Aug 162#21
Really? I've never known a mortgage broker to do that. They always push short term deals in my experience so in two years they get in touch with you again to remortgage which means more commission. You must have a very altruistic mortgage broker.
gwagirl
16 Aug 16#19
I'm on the lifetime tracker which is base rate +0.58%.... 16 years left to go. However as i took out my mortgage between 2004 and 2009, nationwide apply a 'floor' of 2% (i think) so I will never pay less than 2.58%, they are not passing on the rate cut to my mortgage. i guess on the plus side, rates have to now move up quite a bit before i would see an increase (from 0.25% to 2.25% before i would have to pay more). so i think fixing at 2.69 for 10 years may not suit. anyone know if i am missing something here?
Shock
16 Aug 16#18
the Coventry Building society have a 2.39% deal on a 10 year fixed. the cheapest now with £1000 fee.
joey_corlione
16 Aug 16#17
...ah yes over 10% of initial payment Ive just seen
joey_corlione
16 Aug 16#16
Are there any overpayment restrictions on this mortgage?
davewave
16 Aug 16#14
Excellent...I was waiting for this news, I am likely to take the 10 year deal when my current deal ends.
dude_1234
16 Aug 161#10
If we fix our mortgage for 10 year.. and lets say after 5 year if we thinking to sell house.. can we sell house ? is there any penalty to sell house ? please any comments ?
Matholwch to dude_1234
16 Aug 162#12
You could move the mortgage product if you're locked into a product on your old house. As people generally trade up houses when remortgaging, you just stay with nationwide and move your mortgage product, if any shortfall, you get a 2nd new mortgage.
E.g. Move house to a £300,000 property, you have £150,000 mortgage on old house, and £80,000 capital, you would keep your old £150,000 mortgage and get a 2nd mortgage for £70,000 to meet the cost of £300,000 for the new house.
Alternatively, paying off your old mortgage with money from a new mortgage would trigger an early exit fee (% of mortgage). You'd want to calculate the difference in repayments vs exit fee (and potentially lifetime cost of mortgage).
madgeeza to dude_1234
16 Aug 16#13
you just need to check the product terms and conditions and make sure it is a portable mortgage. which will allow you to move the mortgage to your new house.
anthonynsinclair
16 Aug 16#11
I managed 2.46% fixed over 5 years with Nationwide in June.
garethsmith72
15 Aug 161#6
The bmr is base plus 2% fixed for length of account..plus its portable.
jazid to garethsmith72
15 Aug 162#8
Fwiw Bmr is set to drop to 2.25% soon. They'll still be making money on this old product though.
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Opening post
Top comments
Not tempting enough to make me give it up just yet.
So I will pay 99% of it off and pay £10 a month on £500 outstanding for the next 2.5 years to avoid the ERC :sunglasses:
Latest comments (62)
Ultimately I want to pay the least amount of interest as possible and getting a 10 year deal will always result in spending more on interest. Keep up the overpayments and I doubt I will ever be worse off as even if interest rates do rise it will surely not counter out the interest I saved over getting a shorter deal (and subsequently knocking more off on the capital I owe).
New builds in and around Plymouth have actually pushed up house prices of those surrounding over the last 5 years as they've improved the area with the new development - so yours may not drop at all.
Do nothing and wait and see is safe. If I wasn't just getting on the ladder (and have been trying to for a year) I would potentially wait, but I'm not going to after all this effort so far.
Good luck to you! Rates from lenders will only get lower for the next year or so. Base rate may even get cut to 0% if it all looks gloomy and then it'll be even better rates.
2 years + who knows but by then I will be switching to a new mortgage if I haven't already so future me can deal with that then.
I'm not saying there will be no better deals, because I think we might see this one pipped yet, but there's not going to be much in it: the deals literally cannot get significantly better without there being no point in lending you the money, so there really is no great risk of missing out by fixing in now.
I agree stating something that's not available isn't helpful though
It's all a bit of a gamble no matter which way you try and play it :neutral_face: So far it's the bat sh*t crazy do nothing approach* that's proved the most successful
*of which I am a member :smile:
I had plans to remortgage and extend my house in about 18 months but after the Brexit vote things are just too uncertain. Ok in the short term but a year from now I have no idea how things will be.
Although I can't take this option (I want about 80-90% LTV) the rates for 10 year fixed terms are better than I'd expected - enought time for my circumstances to even out.
Hopefully I can keep my current 0.5% above base rate tracker and get a 10 year fixed on the rest. That would be affordable and secure.
I believe the decision is made based on your incoming and outgoing payments and not necessarily just your wage.
We did a mortgage calculator online to give us a rough idea of what we could borrow.
is it not better to know exactly what the mortgage payments will be for 10 years?
when you re-mortgage can this be expensive doing it every two years? can you be declined possibly? can they mortgage less or more of the value of the property? or is it based on the original mortgage price?
sorry for the silly questions!
http://www.moneysavingexpert.com/mortgages/remortgage-guide
If you take a 10 year mortgage you will spend thousands of pounds more on interest. My ideology is to get a cheaper and riskier 2 year deal and the money you save over if you took a 10 year one you should use as overpayments.
What will happen is even if worst case scenario interest rates do rise (I was told they would 2 years ago and they didn't) you will be able to get another 2 year deal in the future but at a lower Loan to Value thanks to the additional overpayments. So even though the interest rates on deals would have risen you'll now be eligible for a newer better deal plus will have less capital to pay off overall.
Also Nationwide allowed me to upgrade early (so after 1 year 9 months) which got me on to my cheaper 1.79% rate over my 3.64% rate 3 months early for some decent savings! I went from an 85% LTV deal to a 70% LTV deal which is a massive jump but thanks to house prices rising and my regularly overpayments I was able to do it and am really reaping the rewards now.
And once Nationwide get you as a customer you are a customer for life so I didn't need to have credit checks and all that mumbo jumbo done again. This is good as both me and my partner have reduced our working hours quite a bit and now earn less.
To summarise if you are savvy and smart with overpayments plus willing to take a bit of risk go for 2 year deals at a lower interest rate. If you don't mind paying extra and are satisfied with whatever the payment would be monthly for a 10 year deal then the security that brings may be the option for you. :smiley:
If you stick with Nationwide, it costs nothing to take a new product after the 2 year initial period (assuming you go for a product with no fees). If you move banks, there may be some legal costs but I think these are usually free. It's generally based on your original house price, indexed up with the markets. A new provider might revalue however. I stick with Nationwide.
1.44 + base rate for two years. No product fee plus £500 first time buyer cash back and £250 flexclusive cash back for having a flex account with them.
I think it is a decent deal and I do not see the base rate going up within two years.
Go on their site and search. Comparison sites did not show me the ones with no set up fees.
how much x your base salary do NW give?
but I would wait till sept 1st new rates will be in place.
http://www.coventrybuildingsociety.co.uk/mortgages/AccountSummary.aspx?socseqno=1&prodCode=FFM71&Company=1
I agree the security of knowing your monthly payments is good however, I just think 10 years is a very long time.
http://www.coventrybuildingsociety.co.uk/mortgages/AccountSummary.aspx?socseqno=1&prodCode=FGH11&Company=1
10 years 2.39% with a £999 fee with free valuation (max 50% LTV)
http://www.coventrybuildingsociety.co.uk/mortgages/AccountSummary.aspx?socseqno=1&prodCode=FGH12&Company=1
10 years 2.69% with no fee & free valuation (max 50% LTV)
go to rate
4.24%
But then, "I am by no means giving any advice....." !!!!
However 5 year and 10 (less so) can be great if you are thinking about starting a family as it is a pain to get a mortgage when you have to factor in kids and child care and the possibility of being on maternity while applying.
http://www.nationwide.co.uk/products/mortgages/106732/details-rates-and-charges
That 2 years has recently passed and thanks to mortgage overpayments (as you rightfully suggest) I signed up again for a 2 year deal at a cheaper rate which is working out to be £140 cheaper a month compared to when I got the house!
So personally I wouldn't go for this 10 year deal. I can understand the safety of it but it's just not for me.
So I will pay 99% of it off and pay £10 a month on £500 outstanding for the next 2.5 years to avoid the ERC :sunglasses:
Obviously, if your debt is relatively small where paying the booking fee costs quite a lot then it might be better to fix for longer. If you have 60% LTV then you have enough security to go with whatever is the best deal and overpay the difference you would've paid for a longer term fix. I saw a 0.99% 2 year fix for HSBC so well worth considering.
http://www.coventrybuildingsociety.co.uk/mortgages/remortgaging.aspx
But yeah proper tried to sell me on a 5 year and maybe even as far as a 10. Also pushed hard for life insurance so I am assuming he would have got commission for both. Was quite frustrating really and a waste of my time but felt obliged to as Thomas Morris pushed me in to it. Have learnt my lesson now though.
Edit - Just thought maybe he didn't have any 2 year deals available. I had told him of the deal I was thinking of going with (2 years at 3.64%) and he was trying to get me on something that was like 5-7% but said it was a much safer option. But am now on 1.79% rate so I am so glad I didn't take his advise! lol.
E.g. Move house to a £300,000 property, you have £150,000 mortgage on old house, and £80,000 capital, you would keep your old £150,000 mortgage and get a 2nd mortgage for £70,000 to meet the cost of £300,000 for the new house.
Alternatively, paying off your old mortgage with money from a new mortgage would trigger an early exit fee (% of mortgage). You'd want to calculate the difference in repayments vs exit fee (and potentially lifetime cost of mortgage).
http://www.nationwide.co.uk/support/support-articles/rates-fees-charges/bank-of-england-base-interest-rate-announcement
Not tempting enough to make me give it up just yet.