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Mortgage thoughts

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    Mortgage thoughts

    Time to remortgage and right now, fixed are actually slightly cheaper due to lock-in.

    I wondered anyone's thoughts on rate Vs discounted period given the current situation? We are in no way looking to move or borrow more, or make overpayments beyond the maximum allowed (10% per year seems the norm).

    Our LTV is about 55% and we've basically got offers 2yrs @1.2% Vs 5yrs @1.4%, as our IFA puts it we'd be paying a fair bit over the next 2 years to guarantee the following 3.

    Any thoughts from those who own their own homes (kebab shops don't count?)
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    #2
    My Mortgage thoughts ....
































































    What is it?

    Comment


      #3
      Originally posted by d000hg View Post
      Any thoughts from those who own their own homes (kebab shops don't count?)
      Racist!

      Comment


        #4
        2yrs @1.2% Vs 5yrs @1.4%

        @ year three only offer on the table SVR 6% - now how do you feel with that 2-year deal?
        "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

        Comment


          #5
          Originally posted by d000hg View Post
          ...or make overpayments beyond the maximum allowed (10% per year seems the norm).
          Get a tracker and overpay, if you can.
          If you can’t afford to overpay now, then get the longest fix you can, and save the rest.
          …Maybe we ain’t that young anymore

          Comment


            #6
            Originally posted by d000hg View Post
            Time to remortgage and right now, fixed are actually slightly cheaper due to lock-in.

            I wondered anyone's thoughts on rate Vs discounted period given the current situation? We are in no way looking to move or borrow more, or make overpayments beyond the maximum allowed (10% per year seems the norm).

            Our LTV is about 55% and we've basically got offers 2yrs @1.2% Vs 5yrs @1.4%, as our IFA puts it we'd be paying a fair bit over the next 2 years to guarantee the following 3.

            Any thoughts from those who own their own homes (kebab shops don't count?)
            Why not have an offset only mortgage and overpay as much as you can each month - clear that mortgage in no time. Get yourself debt free - it's amazing how different life looks when you know you own your home and everything you earn each month (accepting there are bills of course) is yours to spend how you want.

            We did this via Coventry over 12 years ago - best thing we ever did.

            Edited : not interest only, but offset.
            Last edited by Whorty; 7 August 2020, 20:40.
            I am what I drink, and I'm a bitter man

            Comment


              #7
              Originally posted by scooterscot View Post
              2yrs @1.2% Vs 5yrs @1.4%

              @ year three only offer on the table SVR 6% - now how do you feel with that 2-year deal?
              Yes that is the question. The fact 5 year rates are still so low, and tracker mortgages cost MORE than fixed, suggests banks have little expectation of significant rate rises.

              We've normally gone for 2 year fixed deals but the current mortgage was taken out based on my wife working and she just started a business - so we're locked in to our current bank's "easy switch" options (which happen to be pretty competitive). In 2 years she will still only have 1-2 years trading history, probably only one representative. So my thought is to take 5 years and not have to worry about it for a while!
              Originally posted by MaryPoppins
              I'd still not breastfeed a nazi
              Originally posted by vetran
              Urine is quite nourishing

              Comment


                #8
                Wait till negative rates kick in and they will pay YOU to borrow.

                Comment


                  #9
                  Originally posted by d000hg View Post
                  Time to remortgage and right now, fixed are actually slightly cheaper due to lock-in.

                  I wondered anyone's thoughts on rate Vs discounted period given the current situation? We are in no way looking to move or borrow more, or make overpayments beyond the maximum allowed (10% per year seems the norm).

                  Our LTV is about 55% and we've basically got offers 2yrs @1.2% Vs 5yrs @1.4%, as our IFA puts it we'd be paying a fair bit over the next 2 years to guarantee the following 3.

                  Any thoughts from those who own their own homes (kebab shops don't count?)
                  Don't forget to add in the fees to use in the calculation of annualised total costs.

                  I'd go 5 year now. Heck I might even do 10 years @ 1.99%.

                  Think of the long term security in what is now a volatile world we live in. Why be greedy when rates are already so low?

                  Comment


                    #10
                    Originally posted by Whorty View Post
                    Why not have an interest only mortgage and overpay as much as you can each month - clear that mortgage in no time. Get yourself debt free - it's amazing how different life looks when you know you own your home and everything you earn each month (accepting there are bills of course) is yours to spend how you want.
                    I want to build up cash - my portfolio is unbalanced in terms of property and stocks so I'm trying to get more cash in the bank.

                    We had/have the option to be mortgage free when we bought but chose to put half the money in other things, since really mortgage-free just means investing at 1.x%.

                    Originally posted by WTFH View Post
                    Get a tracker and overpay, if you can.
                    If you can’t afford to overpay now, then get the longest fix you can, and save the rest.
                    Why a tracker? You can still overpay on a fixed, within limits but we're not going to want to overpay more than 10% a year anyway.
                    We have 40k ISA allowance annually and I'd probably rather put money into that first, or split it, and we don't have 6 figures investment income annually

                    Originally posted by ChimpMaster View Post
                    Don't forget to add in the fees to use in the calculation of annualised total costs.
                    Yeah. Factored in, in our case the grand of fees is cheaper than the extra interest over 2 years let alone 5
                    Last edited by d000hg; 7 August 2020, 20:46.
                    Originally posted by MaryPoppins
                    I'd still not breastfeed a nazi
                    Originally posted by vetran
                    Urine is quite nourishing

                    Comment

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