Soldato
- Joined
- 6 Nov 2002
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- 9,878
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- London UK
Yeah it does feel good with one less thing to worry about. As you say intention is to build the pot up again as at some point in the future we would like to move again.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Soldato
- Joined
- 24 Apr 2007
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- 7,563
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- Southport
Good man - welcome to the club!
It absolutely skinted me, but knowing the four walls are mine was worth the pain
<pedant>TESSA (Tax Exempt Special Savings Account) was introduced by John Major as Chancellor of the Exchequer in 1990 and was replaced by the ISA in 1999.</pedant>
Certainly was. I had a very upper middle class childhood with the house in a good part of Surrey, Dad in the finance sector, few cars etc. then 15 years later he lost it all when he went bankrupt having decided to buy a couple of nightclubs that failed. Ended up working for me in a bar cleaning ashtrays and clearing glasses.
Funnily enough the crazy housing market saved his and my Mum’s bacon. Early 2000s he somehow got a dodgy mortgage from a financial advisor mate that would have run until he was in his 80s. This was on a property still in the South East. Cashed out the equity in 2007 just before the crash that let him purchase something outright in Lincolnshire. That went up a bit from 2008 until 2014 at which point they downsized to free up a bit more and he passed away having a house paid off for my Mum in Northants and a few quid in the bank too - a secure retirement for her all from “free” equity the houses made.
Congratulations!
I went a slightly different route; I got an interest-only offset mortgage and offset it fully. My thinking being borrowing back from that offset if I need to do big house repairs is cheaper than getting a loan.
It is a wonderful feeling to know I can't lose the house.
Oh, well, I have fixed mortgage until end of April 2023, although a small amount left, under 20k. Fortunately I am a saver and not spender so managed to save up so money and will just pay it all off closer to April 2023 when I can do this without paying any penalty fees.
I assume the interest you will pay between now and April 23 is less than the penalty fees?
Soldato
- Joined
- 6 Nov 2002
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- 9,878
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- London UK
Same approach I took, waited until current term ended and then it was something like a couple of hundred in admin fees to close it out opposed to the 1-2k mid term.
I paid my mortgage off in 2020, and it was a relief, but I decided to get another one and moved house this year. New mortgage is locked down for 5 years, but it still seems like a mistake perhaps.
Think if I lost my job I'd have to put it up for sale immediately while I looked for a new job.
Think if I lost my job I'd have to put it up for sale immediately while I looked for a new job.
Anyone got the feeling that interest rates aren't going to hit the highs that were predicted last year?
I'm wondering if it's worth opening a 3 year fixed savings account sooner rather than later. If these predictions come true I expect rates to drop on these accounts quickly.
Do these rates depend more on base rate than other rates (like mortgages and gilts)?
And also, I'm guessing the issuers take into account future rises/falls?
I'm wondering if it's worth opening a 3 year fixed savings account sooner rather than later. If these predictions come true I expect rates to drop on these accounts quickly.
Do these rates depend more on base rate than other rates (like mortgages and gilts)?
And also, I'm guessing the issuers take into account future rises/falls?
Soldato
- Joined
- 5 Aug 2006
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- 11,373
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- Derbyshire
I am a month or so into a 5y fixed deal (no fees) at 3.32% average between all the mortgage accounts.
There's around 11m left on my 2y energy deal.
I am not overly concerned, but I always planned for this.
The problem is that anyone under the age of 32 (age 18 in 2008) has only known debt to be nearly free, so many have huge mortgages then had kids, taken a car lease and one parent has cut their hours.
There's around 11m left on my 2y energy deal.
I am not overly concerned, but I always planned for this.
The problem is that anyone under the age of 32 (age 18 in 2008) has only known debt to be nearly free, so many have huge mortgages then had kids, taken a car lease and one parent has cut their hours.
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Not quite, my first mortgage in 2007 was still at nearly 4% - but it was an interest only mortgage which meant it was much more affordable. I was screwed for a few years when the crash happened, but my debt was never low interest until my purchase last year at 1.24%
I've only known low rates.
And I'm sure glad I don't have any other debts. Especially being made redundant (last day was today) I'm glad my mortgage is my only debt with interest!
Also glad not to have the responsibility/cost of kids!
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Although being exactly 32 i have never viewed life on cheap debt as normal. Probably being from a financially very poor background has caused me to be very careful with money my whole life (I was one of those kids that got full EMA allowance). I have been lucky enough to have succeeded fairly well in my job, have good investments and coupled with frugality/DIY attitude has meant that i'm essentially mortgage free (5% debt on house value @ 2.98% fixed until the end) in a 4/5 bed house with enough liquid assets to see probably the next decade of expenditure if i lost my job.
I know most people are not like this but my whole life has been moulded around being poor and having no money. eg I only found out a bit later in life that the "real" presents (not that we got many) were bought by my uncle and grandma, while my parents could only afford to give us things we needed like clothing and some nice chocolates and sweets. But even when i could borrow tens of thousands as a student and move out i choose not to and instead studied in my home town and only borrowed enough to cover my travel and some living expenses. I no longer have a student loan.
So like you, I’m not overly concerned either, and you could say I always planned for this my entire life
. In the meantime i will just keep squirreling away my surplus money and probably die a millionaire being too afraid to spend it 
the kids will be happy when that day comes for sure.. Luckily the wife and I are in sync with this, we often say our main hobby is saving money. While it sounds stupid, its a fulltime hobby across all aspects of life .
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Sorry to hear that. Hopefully you'll have something lined up soon enough, but not great timing.
lol, not great timing as in the last decade?
I mean just before Christmas, and going into a recession.
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Santander just increased their SVR from 5.5% to 6.25%