Mortgage Rate Rises

DJMK4 said:
It depends, i do on call and overtime, so this can fluctuate

without that, my base salary is around £65k, with on call, overtime, bonus etc then its abit more than this

not giving the actual figures
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Fine and I don't care what you earn but you're asking hypothetical questions based on part info.

You can't save that much every month but either way assuming you could and assuming you have your mortgage covered in savings it's probably still best to pay it off.

You could build up £10-20k in emergency funds very quickly and what emergency could possibly befall you if you have no mortgage, live alone and spend almost nothing?
 
DJMK4 said:
almost, but i dont want to pay it off now in one go as i wont have any emergency funds, it would wipe me out completely
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What emergency fund requires £124k?

Equally why was buying a car so hard with you worrying about getting one for a specific figure (instead of spending a couple of grand more), when you have that much sat around?

Mind boggles.


Either pay a decent chunk off in one go and massively reduce the interest now, or don't pay anything off. Seems pointless to just overpay monthly.
 
Armageus said:
What emergency fund requires £124k?

Equally why was buying a car so hard with you worrying about getting one for a specific figure (instead of spending a couple of grand more), when you have that much sat around?

Mind boggles.


Either pay a decent chunk off in one go and massively reduce the interest now, or don't pay anything off. Seems pointless to just overpay monthly.
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This is the person who in the BMW thread is panicking about tyres invalidating warranty on a car that's worth just over 10% of his savings.

Its either extreme paranoia or some weird form of trolling.
 
matt100 said:
Its either extreme paranoia or some weird form of trolling
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Or bragging. I'll will never understand his problem the way he's put it.

If I was him I'd pay off £80k mortgage, put £20k into a stocks isa, and keep the rest for emergencies/comfort. If his isa is maxed already, then that'll go to the house too.

Then I'd be looking at a pointless £20k remaining mortgage and thinking how can I just get rid of this junk as soon as possible
 
To be fair I've known plenty of people who look for something to worry about, it's human nature and how we made it to the top of the food chain.

I don't think it's bragging tbh.

Dreadful catastrophising financial management perhaps but I don't sense bragging.
 
matt100 said:
Its either extreme paranoia or some weird form of trolling.
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Its probably option one and its very common in people who find themselves with a lot of money they never had before.

This poster has had so much advice about what to do in the savings and also the stocks thread as well. They literally cannot make any decision except hoarding more cash.
 
To be fair I've been similar.. in the 00s I earned £30k ish and wound up with the same in credit card debt just as the crunch happend.

I nearly went to the wall.

Now I earn a lot more. Ironically back then I lived like I earn now, now I live like I earned then in many ways :)
 
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200sols said:
Outside of some niche situations like those monthly savers offering 7% unless you are a basic rate payer its almost never worth paying the tax compared to the alternatives like low coupon gilts or premium bonds. With a decent chunk in premium bonds the average person will get the average rate which is 3.6% right now which is not half of a good savings product.

Your calculations on stocks vs cash seem a bit off as well.
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I’m not sure my numbers are that far off e.g.:
Premium bonds 2-3%
Saving 4-5%
Stocks 7-8%

Obviously stocks and premium bonds can vary quite a lot and neither has a guaranteed return. In both products your return could be near zero, they could also be a lot more, considerably more but that’s very unlikely, akin to winning the lottery.

Of course you are only into taxable products if you have used all of your allowances for the year with the exception of premium bonds. Their value is in the risk but that’s reflected in the returns.

If you are focused on the returns a long term investment elsewhere like stocks and shares will net you a higher return even after tax.
 
Armageus said:
What emergency fund requires £124k?

Equally why was buying a car so hard with you worrying about getting one for a specific figure (instead of spending a couple of grand more), when you have that much sat around?

Mind boggles.


Either pay a decent chunk off in one go and massively reduce the interest now, or don't pay anything off. Seems pointless to just overpay monthly.
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You can only pay 10% per year without incuring a £2.5k charge



As for the car, yes because i have never really spend more than £6k on a car before,
 
DJMK4 said:
i dont know
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Armageus said:
1754986748284.png
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this is based on overpaying £6500 per year

Capture.jpg



May aswel just pay £6500 per year ? the difference compared to your pay £60000 in one lump sum is about £5k difference and only a year difference compared to spreading it out



I will have a think about the best approach
 
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DJMK4 said:
this is based on overpaying £6500 per year

Capture.jpg



May aswel just pay £6500 per year ? the difference compared to your pay £60000 in one lump sum is about £5k difference and only a year difference compared to spreading it out
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Using your actual figures - £16k saving and 15 months earlier?

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link for those not aware:
www.moneysavingexpert.com

Mortgage Overpayment Calculator: Pay off your debt early?...

Mortgage Overpayment Calculator shows how much you can save by paying off your mortgage early - if your mortgage allows overpayments.
www.moneysavingexpert.com www.moneysavingexpert.com
 
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Armageus said:
The question I suppose is, is your 60k going to earn 16k by being in savings over whatever period of time?
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I dont know, i am maxing out my ISA allowance each year so i dont have any allocation left this year for that, also the rates are dropping

I dont know how much tax i would have to pay after i go over my £500 PSA threadhold,

Anyone know ?

I could invest in stock market (non ISA) but again i would be paying tax on savings
 
DJMK4 said:
I dont know, i am maxing out my ISA allowance each year so i dont have any allocation left this year for that, also the rates are dropping

I dont know how much tax i would have to pay after i go over my £500 PSA threadhold,

Anyone know ?

I could invest in stock market (non ISA) but again i would be paying tax on savings
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How old are you?

You could put it in a sipp.
 
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Also worth bearing in mind, that overpaying a chunk before your renewal will bring down your monthly payment when you renew in 2 years or whatever, regardless of what interest rates do by then. Whereas by only overpaying 10%/year won't have such a big reduction.
 
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