Mortgage Rate Rises

If you get registered on the voters roll, most people people will have enough on there as it is without taking out any form of unsecured debts.

Hardly anyone uses a PAYG mobile anymore, so your mobile phone contract will show.

Basically all current accounts these days throw agreed overdraft limits on, which is a form of credit agreement and will show, even if you never go in to your overdraft.

Most forms of utility bill.

So without even trying most people would have those and you are already golden.

Unsecured debts are not good, they will only detriment your application.
 
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People fuss too much over credit ratings.
Other people don't fuss enough.

Its a tool to be used. Mine is never super high as I open and close accounts frequently
 
BUDFORCE said:
If you get registered on the voters roll, most people people will have enough on there as it is without taking out any form of unsecured debts.

Hardly anyone uses a PAYG mobile anymore, so your mobile phone contract will show.

Basically all current accounts these days throw agreed overdraft limits on, which is a form of credit agreement and will show, even if you never go in to your overdraft.

Most forms of utility bill.

So without even trying most people would have those and you are already golden.

Unsecured debts are not good, they will only detriment your application.
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I don't have a PAYG phone and mine doesn't show on my credit report. So not all contracts show up.
I think at the time I was told to get a credit card because PAYG was common and I loved with my parents so no bills. So there was nothing other than a current account on my report.
 
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aside from my seperate savings (Premium bonds, ISA's , savings account) i have a seperate pot where i am building up some funds for mortgage overpayment


I have £4k thats in this pot ready to fire off my first lump sum overpayment

I could probably save another 4k without touching my savings in another couple of months,

Wondering if i should give them a call today to fire off this first 4k
 
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When I paid off my mortage with a lump sum a few years back my wife got VERY upset with me (not really sure why now still) cos she hadnt saved anything and I'd saved to get it done as it felt like a millstone around my neck... I dont envy you guys the worries they give. (EDIT: the worries mortgages give, not wives!!!)
 
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GR63 said:
When I paid off my mortage with a lump sum a few years back my wife got VERY upset with me (not really sure why now still) cos she hadnt saved anything and I'd saved to get it done as it felt like a millstone around my neck... I dont envy you guys the worries they give. (EDIT: the worries mortgages give, not wives!!!)
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Sounds like she owes you a nice holiday at least
 
I took out a fixed rate 5 year mortgage in 2021, so it's up next year around October. It was over 25 years.

I didn't really think much about overpaying it, so haven't done

Is there any benefit in me doing so before the term ends?

My interest rate is 1.6%.
 
VincentHanna said:
I took out a fixed rate 5 year mortgage in 2021, so it's up next year around October. It was over 25 years.

I didn't really think much about overpaying it, so haven't done

Is there any benefit in me doing so before the term ends?

My interest rate is 1.6%.
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At 1.6% , absolutely not. Simply put yhe amount you would be overpaying in a savings account which is easily going to be over 3.5%.

Overpaying your mortgage will just be waste of time and money
 
VincentHanna said:
Is there any benefit in me doing so before the term ends?
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no, because your interest rate is so low, the money is better off in the stock market or in savings
your lump sum overpayment should be right at the end of the mortgage at the time of the remortgage

eg: rather than paying off £500 extra for the next 12 months - this is saved or invested
then when your 1.6% mortgage finishes, you remortgage for the amount less the £6000
and the net interest from that £6000 goes into your pocket for a few beers on a night out

edit: beaten lol
 
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my mortgage rate is currently 3.95% still, when my isa is around 3.85%, so the mortgage rate is slightly higher (but iv not been able to pay in anymore to the isa since around june

And now im on around 20k in my normal savings account, taxible teratory

I think a couple of overpayments on the mortgage would be sensible, hence why im doing it



as said before if i can overpay a minimum of around £6-8k per year ill bring my mortgage term down from around 22 years which is curently would be if i didnt overpay to around 10-11 years with that overpayment plan

if i could do a £8-10k overpayment per year it would probbaly be around 9 years
 
VincentHanna said:
Yeah it was a great deal. I think when it comes for renewal I will be in for a shock.

I'm sure they offered a 10 year deal at 1.98% as well...hindsight and all that.
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I'm in almost exactly the same boat, 5 year fix 1.7% interest only, runs out early Feb next year, what was I thinking not locking in the 10 year :confused:. Currently hoping for a least one further rate cut before Feb 26. I have been piling my capital payments into an ISA over the time, even if I end up jumping to 4% mortgage I'll still do the same, money is definitely working harder in the ISA than going into the mortgage.
 
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