MortgageSpecialist .. Thanks for taking the time to type a detailed explanation ..

I really appreciate the information and advice

Replies like this make this site what it is .. excellent!!

Thanks, Bob

Your current Base + 2% is indeed just like a tracker rate. There are some tracker rates in the market at better than this, but not without massive arrangement fees that you would never recoup because the savings on the monhtly payments wouldn't be that big.

So. If you want a variable rate, stick with what you have. Of course, Base rate is going to rise this year and next, of that there is little doubt. If you would rather have the comfort of knowing what your monthly payments would be, then you should get a fixed rate. Waiting until rates start to increase before taking out a fixed is too late, because future increases will already have been priced into the fixed rates on offer at that time.

Depending on your circumstances, Woolwich has a 2-year fixed at 3.79% at the moment which is among the best available, but bearing in mind that Base would need to go up by 1.29% for your existing mortgage to get that high, you would likely be better off on a tracker if you want the best deal in the long term. I would be looking to keep hold of your Nationwide BMR deal until around November 2011, then grabbing a fixed rate for perhaps a 5-year term which you should be able to get for around 4.75% or so at that point. That would likely represent best value for money in the long term.

Hi all

Im looking some reassurance from the 'great and the good' please.

I am an existing Nationwide mortgage customer and am enjoying their Base Mortgage Rate of 2% plus the current Bank of England rate (.5%) making my current rate 2.5%.

I plan to stay on this (I am in a secure job and whilst money is never 'plentiful' ...I am an ordinary 'joe' .. I can absorb reasonable increases in the bank rate).

I view the Nationwide 'Base Mortgage Rate' deal as a 'sort of' tracker deal .. eg it will track the Bank of England base rate at +2%

If current tracker deals are in the region of 2.64% above base with £1.5K arrangement fee (current 2 year Nationwide deal) then im always going to be .64% and £1.5k ahead in this particular deal irregardless of increasing interest rates.

Am I right or wrong? If wrong should I move to secure a fixed deal rate asap?

Help .. the weebobster is confused.com