My mortgage will be 100k / 1800 a month from January onwards but its over a 5yr term so I'm less worried about it.
Not sure what your income is but your mortgage seems sensible..
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
My mortgage will be 100k / 1800 a month from January onwards but its over a 5yr term so I'm less worried about it.
Not sure what your income is but your mortgage seems sensible..
Yep, it is an extreme trap that I managed to get out of on my old flat. The amount of stress it put me through was insane.
Soldato
I'm in what they call Fleecehold, it's a freehold property that I pay a management fee on yearly to a useless management company, but it's all baked into the contracts and you can't get out of it legally.
Made worse by the fact that the council get the full rate from me and don't do anything for some of it (the usual road maintenance or maintaining any of the green areas or lighting or anything).
One day I'll look at buying somewhere fully freehold. Management fee here seems to be around £260-300 a year to date.
Made worse by the fact that the council get the full rate from me and don't do anything for some of it (the usual road maintenance or maintaining any of the green areas or lighting or anything).
One day I'll look at buying somewhere fully freehold. Management fee here seems to be around £260-300 a year to date.
Yep, this is something I wanted to avoid as it's actually worse than leasehold. At least with leasehold you get some protection (albeit very limited), fleecehold is a very grey area, baked into a covenant on the deeds. If you entered into this in the past few years, expect it to gradually go upto at least 1000 a year soon.
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I don't know why you aren't massively overpaying. 200k is a very low mortgage for your salary from what I recall.
Soldato
I don't think they can on mine the fees are based on calculated maths they use to cover all work done on the estate + the management fees cut.
So far it seems they send you a breakdown of the fees and what they get spent on, so yes it's not capped as such, but it is at least somewhat justified, they haven't just arbitrarily charged more because they can so far.
I wish they had a set time limit on these though, even if it's for 10, 15, 20 years from when the estate is built, council should be forced to take back control after a set length of time.
There's no point overpaying if you are on a low interest rate. You overpay when your rate increases.
I'll rephrase it to - I don't know why he isn't aggressively chasing mortgage freedom (whichever way he gets there).
Ive seen similar near where I live, and they add provisions in for the roads etc then it can start to mount up. Plus it doesn't have to be audited like leasehold.
You must be on a seriously high income to have a 700k mortgage right? I would imagine at least 300k annual household income to be able to afford that.
Average spend is a third of income on mortgage and increasing as more people move to higher rates.
Doubt someone banking £300k a year will take out a 25yr loan of 700k.
Imo 25% is the maximum for it to be affordable even after rate increases. Just because a bank is willing to lend you 700k doesn't mean you can afford it.
I didn't have much savings when we bought this house. And wanted to build it up.
Once I have a comfortable savings (isa) buffer I might look to over pay.
But that money is locked away if paying off mortgage.
Also. If do end up in a more expensive house next time I'd rather use savings to not have to get 2 mortgages. So put the cash to the value delta between the two properties.
Also.. Holidays.
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Very wise.
Caporegime
No point overpaying currently when you can earn more interest than you'd save overpaying (especially if you have unused ISA allowance).
Save what you can, earn as much interest as possible and just knock it off the mortgage when you change deals next.
I wouldn't say its very low.
I wouldn't even say its low?
200k seems like a lot to me.
1pc increase in mortgage rate is 100 a month ish.
That's why it seems a lot.
If I was paying 3-400 pounds more (ie current rates) my life would be very different.. Thus it seem a lot.
That would suck up my holiday budget for example.
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It's a sensible mortgage.
I could have got a mortgage that was double to triple than what I got, but I chose to get a smaller house and live within my means. Best decision I made and I'm looking forward to being debt free. Then save save save for a more expensive house
It's a sensible mortgage.
I could have got a mortgage that was double to triple than what I got, but I chose to get a smaller house and live within my means. Best decision I made and I'm looking forward to being debt free. Then save save save for a more expensive house
Location is more important to me.
If had a much bigger house would just end up buying more tat, more maintaining etc.
Were not having kids so no need to think about inheritance type stuff. So having loads of cash locked up in a home seems a waste.
Yeah same as us. I don't want a massive house and am pretty comfortable where I'm living at the moment but would be nice to have the option in say 10 years to move somewhere a bit nicer.
The problem is, the house you are saving more is getting more expensive every day. So you need to be saving exponential amounts...It's a sensible mortgage.
I could have got a mortgage that was double to triple than what I got, but I chose to get a smaller house and live within my means. Best decision I made and I'm looking forward to being debt free. Then save save save for a more expensive house