I'm enjoying it, my mortgage lender immediately said 'we're passing this drop in interest on to our customers' fan bloody tastic, seriously this is a lot of money to me but why, when the rates go up does it affect my next payment. When however the rates go dowon it is always the payment after next it affects?!
Fair play I had to swallow the worst when rates went right up when those on fixed rates laughed at me so I am well happy they are going down. I will be a few hundred squids a month better off.
Stanmore/Lou, I will be coming to see you in the coming months to re-mortgage if the offer still stands?
Surely with the rates going down - if you can afford to keep paying what you were paying before you should pay that as you will take out a much bigger chunk of your mortgage in the long run this way. by paying less now, you'll end up paying just the same in the long run
[cite]Posted By: moutuakilla[/cite]Surely with the rates going down - if you can afford to keep paying what you were paying before you should pay that as you will take out a much bigger chunk of your mortgage in the long run this way. by paying less now, you'll end up paying just the same in the long run
either that or save up for the next time the rates go above your original payment or indeed you get canned - sorry to be pessimistic but these things happen.
[cite]Posted By: kigelia[/cite]I sometimes wonder why I bother living within my means. I might as well spend up everything I have and wait for the government to bail me out. There certainly doesn't seem to be much point in having any savings at the moment.
Agreed. Sick to the back ****ing teeth of suffering because of people's stupidity - getting £400k mortgages on shoeboxes while working in ****ing Asda and then wondering why they're financially struggling - wringing their hands and saying 'its all the banks' fault. Part of me wants to say '**** it all' and just get the biggest mortgage I can find, run up forty grands' worth of credit card debt then order the government to bail me out. C****s.
Or play the game and remember the next time your mortgage is up for renewal to get on a lower rate fixed and over pay when you can? I got through and I will continue to do so but I have no intention of getting thumped by a casual interest rate increase again. At least those on fixed rates didn't get battered when interest rates were going north and are only suffering because they were safe before
another slant on interest only - but only for hose who are disciplined.
Take 2 mortgages , 1 repayment & 1 intrest only. Both on the same rate on the same amount of loan and lets say the monthly repayments on the repayment loan are £1,000pm and the interest only are £700pm.
At the end of the term (say 25yrs) the repayment loan is cleared and on the interest only the original amount borrowed is still outstanding. However, say every month on the i/only loan you pay £1,000 like you would have to on the repayment loan then over the period of time you will pay off the capital BUT you are not held to this amount by the lender. Therefore should you lose you job or have to take a lower paid job or interest rates rise then you know you have the flexibilty to alter your repayments back down to the original figure - which you don't on the repayment loan.
Also, this "extra" £300 pm is sometimes seem by lenders as an "overpayment"and therefore could be re-paid back to you should you need it. Ie, after 5 years of the scenario, assuming nothing changes, both loans have had £1,000 pm paid off every month and have the same balance outstanding, but the i/omly loan has £18,000 sitting in an account that could be used should you need to. Obviusly if you draw all this back then the outstanding loan goes back to the original amount borrowed - but you have this money & not the lender.
A significant % of my clients are professionals who run their own business. Often musician and others connected with the arts and have quite variable income. This is often a scenario i recommend
You can do all this with certain trackers. Overpayments into your tracker account theoretically pay the same interest rate as the mortgage - it's accessible and it's tax free!
Just need to wait for my fixed rate to end in May, then on to Nationwide SVR. Not long to wait I suppose, and I probably did ok when Interest rates where higher earlier this year.
Interest Only = pay more interest over the course of the loan because you are always at the highest balance you borrow. Therefore if you can afford it i would suggest repayment is always better. That said Interest Only cn afford you more flexibility and as long as you take out a long enough interest only loan then you are pretty safe with that too...shouldn't think many banks are doing IO at the mo though.
Comments
Fair play I had to swallow the worst when rates went right up when those on fixed rates laughed at me so I am well happy they are going down. I will be a few hundred squids a month better off.
Stanmore/Lou, I will be coming to see you in the coming months to re-mortgage if the offer still stands?
either that or save up for the next time the rates go above your original payment or indeed you get canned - sorry to be pessimistic but these things happen.
"stanmore is there a collar with the woolwich .18% tracker ? "
No Collar with woolwich i believe- had an email from them already saying that they are passing it on in full.
great deal!
Take 2 mortgages , 1 repayment & 1 intrest only. Both on the same rate on the same amount of loan and lets say the monthly repayments on the repayment loan are £1,000pm and the interest only are £700pm.
At the end of the term (say 25yrs) the repayment loan is cleared and on the interest only the original amount borrowed is still outstanding. However, say every month on the i/only loan you pay £1,000 like you would have to on the repayment loan then over the period of time you will pay off the capital BUT you are not held to this amount by the lender. Therefore should you lose you job or have to take a lower paid job or interest rates rise then you know you have the flexibilty to alter your repayments back down to the original figure - which you don't on the repayment loan.
Also, this "extra" £300 pm is sometimes seem by lenders as an "overpayment"and therefore could be re-paid back to you should you need it. Ie, after 5 years of the scenario, assuming nothing changes, both loans have had £1,000 pm paid off every month and have the same balance outstanding, but the i/omly loan has £18,000 sitting in an account that could be used should you need to. Obviusly if you draw all this back then the outstanding loan goes back to the original amount borrowed - but you have this money & not the lender.
thats why some people have i/only.
A significant % of my clients are professionals who run their own business. Often musician and others connected with the arts and have quite variable income. This is often a scenario i recommend
Win/Win