mortgage advice

DBT85 · 15 Nov 2011 at 13:52

edscdk said:
I think you can typically pay 10% off the ?principal? the principal being hte initial loan, so if you borrow 100k on a fixed you can pay an extra 10k a year off every year (but no more and you have to be care ful overpay £1 too much are you get a massive fine since you breached the terms)

Ours with RBS is 10% of the outstanding principal per year. So we can pay 18k this year, but maybe only 15k next year, 13k the year after etc.

edscdk · 15 Nov 2011 at 13:52

thats 10% OF the princpial so if you borrowed 100k even when you only owe 50K you can still pay off an extra 10k over the year,

also you can pay it off at the first day of the term each year, so you dont have to just pay off extra per month

edscdk · 15 Nov 2011 at 13:53

Todge said:
Ours with RBS is 10% of the outstanding principal per year. So we can pay 18k this year, but maybe only 15k next year, 13k the year after etc.

ah, thought they all worked the same, anyway be VERY careful NOT to overpay!

DBT85 · 15 Nov 2011 at 13:54

edscdk said:
ah, thought they all worked the same, anyway be VERY careful NOT to overpay!

you mean over overpay

edscdk · 15 Nov 2011 at 13:59

Todge said:
you mean over overpay

No,

borrow 100K

if you can overpay by 10% of the principal you can pay off an extra 10k over the year,

however pay off 10,001 and technically you have breached their terms and if they want to they may hit you with a £££ fine - I cannot imagine they would but they might....

this is my understanding from dealing with my provider anyway

krooton · 15 Nov 2011 at 14:00

Todge said:
you mean over overpay

Don't worry, I understand what you mean

DBT85 · 15 Nov 2011 at 14:03

edscdk said:
No,

borrow 100K

if you can overpay by 10% of the principal you can pay off an extra 10k over the year,

however pay off 10,001 and technically you have breached their terms and if they want to they may hit you with a £££ fine - I cannot imagine they would but they might....

this is my understanding from dealing with my provider anyway

Sorry, I meant if you overpay then its fine, but if you overpay too much then its bad. Ours similarly want to charge us if we pay bakck too fast. So overpaying on your mortgage = good. Over overpaying on mortgage = bad.

krooton said:
Don't worry, I understand what you mean

Ahh good.

PapaLazaru · 15 Nov 2011 at 15:19

Rates will stay low for at least the next 2 years. Just get a variable rate without a long tie in. 2 / 3 year discount will be your best bet. You could even just stay on SVR if it is low with your provider.

cm1179 · 15 Nov 2011 at 19:01

Bunka said:
It is yes, however the rates are the same for everyone as far as I know.

well this has annoyed me slightly

i'm with barclays (well, woolwich, please clarify this is the same for you) i was a first time mortgage applicant in july 2009 for a sum of £80k. i was told 4 yrs was the maximum i could fix for and was at a rate of 5.25%. i've banked with barclays all my life and put £20k down. can you go into detail on what you have borrowed and how long for? (i will understand if you don't wish to do this) it's just that barclays have been annoying me slightly. my savings account seems to be 'outdated' about twice a year, meaning my savings aren't doing as well as they could (slightly bizarre statement considering the interest low atm) but the point is, they are not telling me this, i'm only finding out when i come to transfer money around, i have 2 ISA's and a bond which are on lower rates than i could get elsewhere to but i decided to stick it out with barclays. couple this with me maybe getting stung on a mortgage and i may have to change my loyalty.

_Jimlad_ · 15 Nov 2011 at 19:22

they say if you have more than 10k in savings and a mortgage your losing money... you should maybe pay some more off, you will save far more in the long run

cm1179 · 15 Nov 2011 at 19:34

_Jimlad_ said:
they say if you have more than 10k in savings and a mortgage your losing money... you should maybe pay some more off, you will save far more in the long run

you're probably right but i am not quite in a position to put so much into an overpayment (save for a rainy day and all o that) and my repayments are sustainable.

Deleted member 77746 · 15 Nov 2011 at 19:38

I'm just about to go into mortgaging myself. Just got a mortgage certificate ready for 70K for 3 years fixed, 25 years at 362 a month, 10% deposit. Glad I read the thread to see what everyone else is doing before committing.

cm1179 · 15 Nov 2011 at 20:02

£80k for £362 a month over 25 yrs? who is that with and at what rate?

.Lethal · 15 Nov 2011 at 20:04

BombayMix said:
If you find one that's really independent and impartial I'll like to know. Everyone I've spoken to biased forwards certain providers and endowment mortgages. When you mention the great deals you saw online they go rather silent and say they can’t help you there. Odd they only seem interesting in selling you something that gives them a big commission. (ie an endowment + life cover).

It's not odd at all.

But it's unfortunate for the customer.

Deleted member 77746 · 15 Nov 2011 at 20:07

cm1179 said:
£80k for £362 a month over 25 yrs? who is that with and at what rate?

Apologeese, 70K, just re-checked 80K is my max allowed mortgage but the calculations are for 70K approved. It's with Barclays loyal customer mortgage first time buyer scheme. 4.99% for the 3 years then to tracker. (around 3.89%) follow on rate., 0% application fee.

The best one around at the moment!

Bear · 15 Nov 2011 at 20:07

_Jimlad_ said:
they say if you have more than 10k in savings and a mortgage your losing money... you should maybe pay some more off, you will save far more in the long run

Thats not necessarily true. We have an offset mortgage and we have savings offsetting the interest. It doesnt make any difference if we offset or we used the savings to pay a lump off the mortgage.

cm1179 · 15 Nov 2011 at 20:10

mrbell1984 said:
Apologeese, 70K, just re-checked 80K is my max allowed mortgage but the calculations are for 70K approved. It's with Barclays loyal customer mortgage first time buyer scheme. 4.99% for the 3 years then to tracker. (around 3.89%) follow on rate., 0% application fee.

The best one around at the moment!

now i'm really annoyed, my mortgage had a £995 app fee!

Deleted member 77746 · 15 Nov 2011 at 20:13

cm1179 said:
now i'm really annoyed, my mortgage had a £995 app fee!

I have figures in front of me if anyone wants Barclays (Woolwich) but its pages and pages of %'s and rates and numbers and figures!

I have got to find a house now.

I walked out with the customer rate sheet, LMFAO!

Crizzy · 15 Nov 2011 at 20:14

mrbell1984 said:
Apologeese, 70K, just re-checked 80K is my max allowed mortgage but the calculations are for 70K approved. It's with Barclays loyal customer mortgage first time buyer scheme. 4.99% for the 3 years then to tracker. (around 3.89%) follow on rate., 0% application fee.

The best one around at the moment!

Post Office are doing a good deal for first time buyers with only a 10% deposit: 5 year fix for 4.99% which is pretty close to your deal although there there is an arrangement fee of £995. They also do a 5 year fix at 5.39% with no arrangement fee, follow on rate for both is 3.99%.

Deleted member 77746 · 15 Nov 2011 at 20:18

Crizzy said:
Post Office are doing a good deal for first time buyers with only a 10% deposit: 5 year fix for 4.99% which is pretty close to your deal although there there is an arrangement fee of £995. They also do a 5 year fix at 5.39% with no arrangement fee, follow on rate for both is 3.99%.

If I was to get the 5 year fixed, it would be as follows;

5.49% - 000 application fee, 10% deposit
4.67% - 499 application fee, 15% deposit