Its always nice when you want to live in a cheaper area than you currently do. Otherwise, yeah, that gap grows!
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Its always nice when you want to live in a cheaper area than you currently do. Otherwise, yeah, that gap grows!
Soldato
We took a much lesser mortgage than we could have. Due to the capital we were putting down, we didn't need a huge mortgage to buy a decent house. The bank would have happily lent us 200k though. Glad we were restrainedIt'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
We took a much lesser mortgage than we could have. Due to the capital we were putting down, we didn't need a huge mortgage to buy a decent house. The bank would have happily lent us 200k though. Glad we were restrained
I think I've said this in thread before.
When we're taking out the remortgage, lloyds said.. We can lend you up to 320k (I think)
Said on the call I thought that was excessive.
Wouldn't like a 300k mortgage on our salaries
By two people though, that's only 450 ea
(it's now about £199!)I think I pay 550 and gf pays 350
But then you got bills on top!
But still adds a lot if get stuck on those nasty 5pc rates!
Equality sucks.
I earn much more, and we have an unequal split on house(if we were to break up)
Soldato
I could really do with a crystal ball....
Currently 1 year in to 3 year fixed rate deal (borrowed 525K @ 2.64%)
2 years until renewal and I'm already worried about it
- anything above 5% at renewal time and we'll probably have to sell up.
Currently 1 year in to 3 year fixed rate deal (borrowed 525K @ 2.64%)
2 years until renewal and I'm already worried about it
- anything above 5% at renewal time and we'll probably have to sell up.It is still substantially cheaper than if you were solo'ing (which is always my barometer of craziness).
Soldato
I pay my mortgage alone but it's at least a moderately affordable one, remaining balance is £170K~ and monthly the cost is £475. I then overpay by £500 PCM so close to £1k.
Bills are fairly low as it's just me, and the solar panels help a lot with the 2nd largest typical bill, utilities.
Got 3.5 years left at a good rate before I need to re-mortgage, hoping to get the balance as close to £100K as I can by then, probably won't get that low, but if I can get near it, then at least the higher rates won't sting as much.
Bills are fairly low as it's just me, and the solar panels help a lot with the 2nd largest typical bill, utilities.
Got 3.5 years left at a good rate before I need to re-mortgage, hoping to get the balance as close to £100K as I can by then, probably won't get that low, but if I can get near it, then at least the higher rates won't sting as much.
Caporegime
My missus pays the entire mortgage and always has done. I pay for everything else. Has always worked that way and we have been going 15 years like that. What is mine is hers and all that.
Soldato
How have you got such low repayments? I'm assuming the term length is on the higher side?
Soldato
Yes I set it higher than usual, it started at 35 years I think, but I just overpay it a lot
Allows me to skip a month or two if I need to.
Soldato
That's a sensible way of doing it, just was a bit suspired at the low monthly repaymentYes I set it higher than usual, it started at 35 years I think, but I just overpay it a lot
Allows me to skip a month or two if I need to.
Soldato
Not that it matters much as well these days, but it did before, but I am also in the best LTV bracket (40% deposit+) and my headline rate is only 1%.
I think the LTV brackets aren't mattering much anymore, and good or bad, the rates have closed the gap.
Soldato
That is a big loan and you cannot predict the future, however you can put yourself in the best position possible.I could really do with a crystal ball....
Currently 1 year in to 3 year fixed rate deal (borrowed 525K @ 2.64%)
2 years until renewal and I'm already worried about it
Things to consider:
1) Inflation makes your mortgage smaller each year in real terms. Your pay increases every year, but your mortgage payment does not. This eases the mortgage payment for you over time. I realise inflation is beyond your control and to an extent so are the annual increments you get at work.
2) Assess your lifestyle to see where adjustments can be made. Best to do this now than wait until remortgage time (and worst of all lose sleep). If your mortgage is 525k then your household income will likely be £116k or higher. Most people these days have pricey car leases, expensive monthly phones, expensive TV packages. The biggest way the middle class stay poor is with cars - They are mentally priced and bleed value. Use these two remaining years to get rid of all your other debts, including credit cards so the mortgage can be the primary financial focus. Obviously I know nothing of your lifestyle, but tightening up on the nice stuff may be required when worrying about potentially being forced to sell up.
3) Using a mortgage overpayment calculator assuming your 525k is over 30y and you have 29y left, £55 extra per month knocks a whole year off the whole mortgage. If the 116k is earnt by one person (and so seriously spanked by 40% tax) and with 6% salary sacrifice pension the take-home is ~£5850. If this is split between two earners the take-home will be significantly higher (split down the middle - 2x58k with 6% pension is 2 x ~£3400 take home).
Assuming a 30y deal the monthly mortgage payment would be £2110. Up that now to £2500 and 2y from now the remaining balance will be ~£480k rather than ~£490k.
Up that to £3000 and the remaining balance will be ~£467k.
4) Have a think as to whether you are paid the market rate for what you do. It may be time to ask for that payrise or move company
.I hope the above helps
.
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Soldato
Yeah some good advice there, cut back a bit now on luxuries can make a big difference.
I'd also throw in the "extend the length" option come re-mortgage time, extending the length if bad if you never pay it down faster with over-payments, long term that costs you more.
But it's not a bad tool if used properly, and if rates do drop back a bit you can just overpay a bit more.
I'd also throw in the "extend the length" option come re-mortgage time, extending the length if bad if you never pay it down faster with over-payments, long term that costs you more.
But it's not a bad tool if used properly, and if rates do drop back a bit you can just overpay a bit more.
Always amazes me what people spend on cars. I'm still yet to have A car on finance. I just can't get over the monthly costs.
Even my old s2k was bought outright.
I just don't see the appeal for a 30k car on pcp vs a 3k car bought outright.
Really, there isn't much difference to me apart from "having" it. So many people with new cars. And I know the average salary, so I dread to think how much of people's take home goes on thier car.
Even my old s2k was bought outright.
I just don't see the appeal for a 30k car on pcp vs a 3k car bought outright.
Really, there isn't much difference to me apart from "having" it. So many people with new cars. And I know the average salary, so I dread to think how much of people's take home goes on thier car.
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