Mortgage Rate Rises
- Thread starter glenimp617
- Start date
So I mentioned about doing an overpayment plan a few weeks back.
I would have to hit it hard.
Iv put majority of this month's pay in to savings again. Put £900 aside for a mortgage overpayment.. ideally In this financial year I want to make a £6000 min mortgage overpayment or 7000.
Obviously the key thing to overpaying is overpay as soon as you can .
I want to 1) reduce my mortgage term and 2) start bringing down the monthly payments.
I have to make atleast a £2600 I think overpayment for it to recalculate
I'm not sure if I make 3 seperate monthly overpayments in the recalculates on the 3rd month.
Only way I see at tackling this is to either drop 7k overpayment in from my savings and be done with it for this year or save for 2 or 2.5 months with nothing really going in to savings. But the longer I leave building up say 6 or 7k to drop the more interest will be added. Maybe it's better to just sacrifice 7k from savings pay to the mortgage then top the savings back up?
I want to stick to a plan to bring it down from a 22 year term to 11 years ideally.
By repaying a lump sum each year
I hate having to give up money
I would have to hit it hard.
Iv put majority of this month's pay in to savings again. Put £900 aside for a mortgage overpayment.. ideally In this financial year I want to make a £6000 min mortgage overpayment or 7000.
Obviously the key thing to overpaying is overpay as soon as you can .
I want to 1) reduce my mortgage term and 2) start bringing down the monthly payments.
I have to make atleast a £2600 I think overpayment for it to recalculate
I'm not sure if I make 3 seperate monthly overpayments in the recalculates on the 3rd month.
Only way I see at tackling this is to either drop 7k overpayment in from my savings and be done with it for this year or save for 2 or 2.5 months with nothing really going in to savings. But the longer I leave building up say 6 or 7k to drop the more interest will be added. Maybe it's better to just sacrifice 7k from savings pay to the mortgage then top the savings back up?
I want to stick to a plan to bring it down from a 22 year term to 11 years ideally.
By repaying a lump sum each year
I hate having to give up money
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Soldato
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Likely through no fault of his own, this guy seems to be completely financially illiterate
Really?
You're not the worst I've seen, but as I've said previously, you really need to be speaking to a financial advisor
Soldato
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I've never done it before but can someone explain what we do when we next renew our mortgage fix.
Balance will be approx £100k - we plan to only remortgage around £55k depending on the rates. I assume this will create a sub mortgage for that amount and leave the rest then on SVR at the point our current fix ends (end of Jan). Can we just do a bank transfer to settle that? Or is there some settlement process we have to go through? We're with Halifax.
Balance will be approx £100k - we plan to only remortgage around £55k depending on the rates. I assume this will create a sub mortgage for that amount and leave the rest then on SVR at the point our current fix ends (end of Jan). Can we just do a bank transfer to settle that? Or is there some settlement process we have to go through? We're with Halifax.
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Do you mean you are going to repay a part of the mortgage to bring it down to £55k? You might be able to do that within the current mortgage term as an overpayment but check if there are charges. The alternative is to overpay between mortgage terms. The mortgage provider can accommodate this if you tell them that’s what you want to do. Then you can remortgage at the lower amount.
Soldato
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Not quite -
Current balance £100k - fixed rate ends Jan 2026
We will remortgage for less than the outstanding balance, and want to settle the rest.
We aren't overpaying currently because of ERCs (and also getting higher rates in savings).
I was more asking about the practicalities of how we pay off the unremortgaged balance which will move onto SVR when the fix ends - whether it's a simple bank transfer or if we have to go through a settlement process.
Or will we actually have to contact them to remortgage less in the first place? Last time I fixed I did it all online and vaguely remember being able to specify how much.
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It’s just a new mortgage rather than a fiddle with your existing one. You’ll need to transfer the balance not being remortgaged to the mortgage company before they switch it over and they’ll deal with it.
If you are remortgaging with another company, you transfer it to their solicitor who will be handing the redemption and remortgage.
You can normally remortgage without redemption charges within 3 or sometimes 6 months of the term ending. Given how much you are paying off, it may be cheaper to remortgage at the easiest opportunity, even if the rates you are charging to is higher.
If you are remortgaging with another company, you transfer it to their solicitor who will be handing the redemption and remortgage.
You can normally remortgage without redemption charges within 3 or sometimes 6 months of the term ending. Given how much you are paying off, it may be cheaper to remortgage at the easiest opportunity, even if the rates you are charging to is higher.
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In other words no one on here is a qualified financial.advisor and don't want to be responsible for my decisions..
Not the worst.?
Possibly
We're not responsible for your choices full stop. "Don't want to" doesn't come into play.
It is an open and public forum and literally everyone and anyone can say whatever they want. If someone were to be truly malicious you could get really really bad advise (it hasn't happened and hopefully this would be called out, of course)
Speaking to a financial adviser they would ask you in more detail about your current situation and other stuff and you'd probably get more in depth and more rounded advise than some faceless person on a forum who knows nothing about your financial situation and plans.
Correct
I'm still confused earlier on I had people saying I was in a good position with savings
Anyways .I will seek advice and maybe do abit more reading rather than posting
You are
You’re in an incredible position, from the sounds of it.
Just make the maximum overpayment you can per year without triggering early repayment charges and leave it at that. That’ll bring the term down in time as fast as it reasonably matters. Invest a decent chunk of your savings in some kind of stocks and shares and you should stay ahead of the interest on the mortgage.
When I had my first house I put most of my spare income in to paying it off and cleared it. Would have been better off investing elsewhere and keeping the mortgage payments the same.
Moved to a bigger property 7 years ago and took out a new mortgage. Now invest in S&S ISAs and putting nothing extra into the mortgage and the figures work out better.
Of course it's a crystal ball thing but I'll keep it as is.
Moved to a bigger property 7 years ago and took out a new mortgage. Now invest in S&S ISAs and putting nothing extra into the mortgage and the figures work out better.
Of course it's a crystal ball thing but I'll keep it as is.
Responding back to myself. I finally sold a chunk today. I'm sitting as massive all-time highs in the stock market and creamed some off the top to pay off a large chunk of my mortgage when it's due for renewal in 3 weeks.Just responding back to this about 2 months after the fact, almost literally to the day. More to myself as well too. Just as well I didn't sell in June as I've blown past the June 9th amount by about 27.6k.
Do I sell now or roll the dice again?
Fixing my term to 13 months where it'll put me mortgage free November 2026.
Looking like rates will drop again here in NZ so timing will work well.
Just looking for a quick sanity check please.
Our 5yr NatWest mortgage is coming to an end at the end of December. Looking to stay with NatWest for ease and no legal/valuation fees and take out another 5yr fixed. £120k, LTV 44%.
Rate wise, it's 3.93% with a product fee of £1025, or 4.14% with a product fee of £30. It's a £12/month difference between the two (£801 vs £813/month).
If I planned make make no over-payments, the 4.14% works out £275 cheaper over 60 months.
Am I right in thinking it'd be better to take the 3.93% as it means I'd be paying less interest on the remaining balance after over-payments? Also, if possible to answer, how much would I need to over-pay by to negate/benefit from paying the £1025 product fee?
Our 5yr NatWest mortgage is coming to an end at the end of December. Looking to stay with NatWest for ease and no legal/valuation fees and take out another 5yr fixed. £120k, LTV 44%.
Rate wise, it's 3.93% with a product fee of £1025, or 4.14% with a product fee of £30. It's a £12/month difference between the two (£801 vs £813/month).
If I planned make make no over-payments, the 4.14% works out £275 cheaper over 60 months.
Am I right in thinking it'd be better to take the 3.93% as it means I'd be paying less interest on the remaining balance after over-payments? Also, if possible to answer, how much would I need to over-pay by to negate/benefit from paying the £1025 product fee?
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