What do you mean? I'm quite young so I still have the energy. I don't work weekends, I make the most of my holidays. I have a dog. I'm pretty happy tbh.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Fine. You're let off.
Soldato
The value of the property is still there i dont see the need for maximum % of net income so long as it is affordable.
There is a case to spend as much as possible, which no doubt comes with diminishing returns, but overall the goal is to buy a house in a good area.
Why would you advise chopping up credit cards, if you have personal control and you have been implementing these things for a while now. Various protections for buying stuff is nice, and so is the ability to take money transfers if needed.
Instead you should pay off your credit card balance in full each statement.
The whole no friends no kids thing is entirely personality dependent, your normal person cannot live like that.
I literally value your shortsighted opinion less than 0, lol.
Permabanned
well at least you have a dog .. that does surprise me ..
.. do yo u have a partner ?How's the mortgage renewal coming along?
Soldato
- Joined
- 6 Sep 2016
- Posts
- 10,624
Doesn't matter if it's 999% APR now :0D
That's a future dLockers problem, so I DGAF
Yes. Pretty similar mindset to mewell at least you have a dog .. that does surprise me ..
I was just asking to keep on topic for a brief moment
Caporegime
A colleague at work just switched roles which require her to travel more, and with my advice she got a credit card and put all her work expenses on it. It's only been 4 weeks, today she told me she racked up £33 in cashback and also got status at IHG or something.
There is no debt, work pays for the credit card balance, she gets free money that she had to spend anyway!
There is no debt, work pays for the credit card balance, she gets free money that she had to spend anyway!
Permabanned
ahhhh the way you were going on i thought you locked your door at night and crept into a coffin .. fair enough ..
For a year or so I put £10k of work expense on a 0% card lol. Just whacked the £10k cash into a bunch of 5% accounts. Free money is free.
ahhhh the way you were going on i thought you locked your door at night and crept into a coffin .. fair enough ..
Soldato
Yeah - we started small over payments as soon as we'd finished redecorating after moving in, house had a very distinct old couple vibe - so had to be done!That is a big loan and you cannot predict the future, however you can put yourself in the best position possible.
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
At 5% rate we can do it without huge adjustments to lifestyle as we'd just need to find an extra £700 pm, we don't eat out a lot or have a lot of credit or any car finance etc. But it will definitely knock out the possibility of going on nice holidays, or reduce the hobby spend, something would have to give which is ok as long as it's not super long term.
If rates go higher, say 6% - we won't be able to have another kid realistically, we are both well paid at a fair rate for the market so dont expect any big increases to our income in the next 3-5 years, we could change to contract work and increase our income a bit - but this would bring it's own problems with mortgage lenders.
At 7% I think we'd rather sell and downsize than compromise too much on other things, this place is 7 bed, 5 bath, huge plot - it's great and we love it, and being by the coast is great. But it would be pointless on comprising on so much other stuff just to service the mortgage.
So - where will rates peak and when.... that's the million dollar question for me at the moment... now where did I leave that magic eight ball!
I'm the absolute mirror of this TBH. The kid situation is a big one for my wife (and secretly me). I'd love another but the finances are now actively preventing it.Yeah - we started small over payments as soon as we'd finished redecorating after moving in, house had a very distinct old couple vibe - so had to be done!
At 5% rate we can do it without huge adjustments to lifestyle as we'd just need to find an extra £700 pm, we don't eat out a lot or have a lot of credit or any car finance etc. But it will definitely knock out the possibility of going on nice holidays, or reduce the hobby spend, something would have to give which is ok as long as it's not super long term.
If rates go higher, say 6% - we won't be able to have another kid realistically, we are both well paid at a fair rate for the market so dont expect any big increases to our income in the next 3-5 years, we could change to contract work and increase our income a bit - but this would bring it's own problems with mortgage lenders.
At 7% I think we'd rather sell and downsize than compromise too much on other things, this place is 7 bed, 5 bath, huge plot - it's great and we love it, and being by the coast is great. But it would be pointless on comprising on so much other stuff just to service the mortgage.
So - where will rates peak and when.... that's the million dollar question for me at the moment... now where did I leave that magic eight ball!
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How old are you if you don't mind me asking
I do mind
43, don't worry I know
