My first post after months of reading the forums...
My current 3 year fix mortgage with Nationwide (at 5.74%) is coming to an end in a few months and I have the option to switch my mortgage online to another Nationwide fix using their online switcher.
From what I can make out, no further valuation or other fees etc. are required when you do it online which is useful as I'm just above the 80% LTV band at the moment so could easily overpay a bit extra (about £1000 in total) for the next few months to bring me under the 80% and get a better rate. If I went elsewhere for a mortgage,there's the chance the house could have dropped in value and I wouldn't be able to make up the extra to bring me under the 80% LTV.
Also, when we first took out the mortgage (as a FTB) we opted for a 40 year term to give lower monthly payments. We've since been overpaying to bring monthly payments up to what it would be if we'd opted for a 25 year term.
With the Nationwide online switcher, you aren't able to alter the mortgage term (to do this I assume I'd have to go down to manual route with Nationwide which may result in a new valuation etc.. but I've not checked this with them yet).
So just after a sense check of my thinking that it wouldn't make any difference if I was to opt for a fix again (thinking 5 year but haven't decided yet) based on a term of 37 years and then continue to overpay to effectively reduce this? Would it all work out the same as if I took a fix out with a shorter term and didn't overpay as much?
Sorry for the essay!
My current 3 year fix mortgage with Nationwide (at 5.74%) is coming to an end in a few months and I have the option to switch my mortgage online to another Nationwide fix using their online switcher.
From what I can make out, no further valuation or other fees etc. are required when you do it online which is useful as I'm just above the 80% LTV band at the moment so could easily overpay a bit extra (about £1000 in total) for the next few months to bring me under the 80% and get a better rate. If I went elsewhere for a mortgage,there's the chance the house could have dropped in value and I wouldn't be able to make up the extra to bring me under the 80% LTV.
Also, when we first took out the mortgage (as a FTB) we opted for a 40 year term to give lower monthly payments. We've since been overpaying to bring monthly payments up to what it would be if we'd opted for a 25 year term.
With the Nationwide online switcher, you aren't able to alter the mortgage term (to do this I assume I'd have to go down to manual route with Nationwide which may result in a new valuation etc.. but I've not checked this with them yet).
So just after a sense check of my thinking that it wouldn't make any difference if I was to opt for a fix again (thinking 5 year but haven't decided yet) based on a term of 37 years and then continue to overpay to effectively reduce this? Would it all work out the same as if I took a fix out with a shorter term and didn't overpay as much?
Sorry for the essay!