SVR - Am I understanding this right

[speed8]

My tracker with the Nationwide, currently 1.37%, comes to an end later in the year. I'm starting to get the letters and phone calls offering me 'Great Deals'. Fixed rates at 4%, trackers at 4.5%, etc.
Nationwide SVR (or BMR as they call it) is currently 2.5%. Surely it's better just to let my term end and go onto SVR and keep my eye open for better deals if any come along rather than taking one of these 'great deals' I'm being offered.
Are there any catches I should watch out for? Am I missing something?

[offshorematt2]

I'm interested in the replies to this... I'm in the same boat in a couple of months.

My take was that even if the base rate started increasing again, it wouldn't happen all at once and there should be time to fix then if it happens in the short term? With the added benefit that I can make some significent overpayments in the interim without worrying about incurring charges.

Think I need to see a financial adviser first though

Edited by offshorematt2 on Friday 10th April 12:12

[yellowbentines]

Sounds like a good low base variable rate but if you're always hanging on for that 'best ever' deal, how will you know when the deal you're being offered is the best you'll get, you could miss the boat!

That said if I was on a rate that low I'd find it hard to fix at a higher rate, even if it gives better long term security.

[pjac67]

You'd be daft to switch to a tracker - the only consideration is to switch to a longish (3yr +) fix if you think the base/SVR will rise to a level much greater than the fix. HTH.

[Road Pest]

If you have a low debt to income ratio (and no expected changes in outgoings/incoming money) and excellent LTV it may be a consideration to revert to the SVR. It really does depend on your situation going forward

[speed8]

Thing is, Nationwide state that their SVR will not be more than 2% above BoE Base Rate. I think in the short term, i.e. next year or two, it would be hard to find a decent tracker or fixed that does better than that, especially when fees are added on when you switch. You can also overpay as much as you want and take a payment holiday with the overpayments if circumstances change.
If all I have to do is let the term expire and be moved automatically then it seems like a no-brainer at the moment. The time to change would be when there are deals out there which are better than my SVR I would have thought.
My mortgage is my only debt really so the only other thing worthwhile would be something like the old One account, maybe, but I don't think the interest savings from having money in the bank would offset the higher interest rate they would charge in the first place.