Switch and Fix
Peace of mind for your clients
All Nationwide tracker mortgages offer your clients the option to switch to one of our fixed rate products at any time without paying early repayment charges on the tracker mortgage.
Fluctuating interest rates inevitably cause concern for some clients. This option means they can take a tracker product with confidence, knowing that if interest rates rise, causing their repayments to increase, they can switch to a fixed rate product at any time and only pay any reservation fee for the new fixed rate product (if applicable).
The examples below show what this could mean for your clients in potential savings when compared to other lenders who do not offer a switch and fix facility:
Example Customer A
With a lenders variable rate product with ERCs who changes to a fixed rate product:
|
Example Loan Size |
£120,000 |
|---|---|
|
(a) Example ERC |
(2%) £2,400 |
|
(b) Example Exit Fee |
£125 |
|
(c) Example reservation fee for new product |
£599 |
|
Total cost – (a), (b) and (c) |
£3,124 |
Example Customer B
With a Nationwide Tracker product who switches to a Nationwide fixed rate product:
|
Example Loan Size |
£120,000 |
|---|---|
|
(a) Nationwide ERC |
None |
|
(b) Nationwide Exit Fee |
None |
|
(c) Nationwide reservation fee for new product |
£599 |
|
Total cost – (a), (b) and (c) |
£599 |
|
Possible saving for your client |
£2,525 |
The example savings reflect the cost of switching from a variable rate product with ERCs to a fixed product during the term.
If you need any further information, please contact our sales support team.
