Mortgage rates - is this possible?

[EmmaGarci22]

I can refix my mortgage from Feb 1st. Annoyingly, this is the same date that Nationwide are applying the new base rate (an additional .5%) on their products.

Would it be possible/allowed if i got a new decision in principle for the same amount as my current mortgage, based on my house value according to nationwide. It says that a DIP is valid for 90 days. So then on Feb 1st, ask if they would honour the decision in principle against my current mortgage? I’m not sure how it all works but i’m trying to save money and desperate at this point.

Any advice would be appreciated.

Yes

Yes

@Chevyimpala67 @Emmamoo89 Is it really as easy as that? I’ve never heard of someone doing this! When i go through the AIP page on nationwide, i have to select reason - first home, moving house, additional borrowing, switching from a difference lender. None of these apply so i’m a bit unsure!

Don’t ask, don’t get 👍👍

Go into branch if necessary

You're a current NW mortgage holder yes? Log into your account then the browse and apply tab - scroll to the right for options for existing mortgage holders.
Select product and apply!

@titchy thank you but i can’t switch before Feb 1st without paying an early repayment charge (something i want to avoid)

Hello! If you are an existing Nationwide customer just looking to switch, as far as I'm aware, there is no decision in principle option given, unless you are looking to borrow more on top. This may have changed though and I could be wrong! Have you managed to get onto the decision in principle page?

You can switch anytime in the preceding four months with NW. My current fix also expires 31 Jan - I sorted the new product a couple of months ago. On 1 Feb it will automatically switch.

Sorry to be clearer - you can arrange the fix anytime in the preceding four months, you just select the effective date of after your current mortgage product expires.

I am with Nationwide and have never done an AIP as I'm an existing customer. Can you not just select product switch and choose a new product now? I've also done this prior to me rate ending and the rate has just been applied once mine ends without any fees for early repayment

AIP is something you get to show estate agents how much you're able to borrow. It doesn't guarantee you a specific mortgage rate.

Sorry for the confusion everyone. My fix deal expires in May and i can select a new product from feb 1st. Which is why i was asking about the AIP in order to avoid the ERC.

How much is your early repayment charge on 31st Jan?

@ThreeFeetTall 1200 or there abouts! To be honest, I don’t know the calculation to see what i could save or lose by spending that ERC! Currently on 3.9% with a LTV of 69.6%. Looking at 4.59% currently and expecting at least 5.09% from 1st feb!

Oooh that's quite a bit. There is a calculator here that can work if you are better off paying it anyway.

app.nous.co/refix

But hopefully someone else can suggest a way to avoid it totally

Ah right you should have said that at the beginning! No there is no way round it - NW are one of the more generous lenders that allow you to arrange your new product four months in advance - other lender are three I believe.

That said, I don't see why the products that are available now wouldn't also be available on 1 Feb. There's no BoE meeting before then, and products available now will already be tied to the increase in base rate.

They haven’t yet applied the new base rate (from December) but their website says they will from feb 1st. Thanks all for your input!

if you go to a different lender you usually get 6 months. This loyalty could (and probably already has) cost you extra.

I was told on the phone by Nationwide that it has now changed from 4 months to 6 months so you should be able to apply for a new deal now!
Our Nationwide mortgage deal ends on 31/7/23 and we were told we can reserve a rate from Feb 23.