Mortgage Rate Rises

MikeTheNative said:
Payment holiday doesn't add extra time to the term length right?
You just have to make sure you pay it before your term length ends?
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Again its lender specific

Nationwide have 3 scenarios, the default is to lower future payments and keep term the same
They also offer keep payments the same and reduce the term, or keep payments the same and do not reduce the term.

"The term" being when your committed to clearing the balance.
 
Kamakazie! said:
Just call Nationwide.

Overpayments are typically applied by reducing future monthly payments so your standard monthly figure should already be less than it was.
Eating into your overpayment value is not a payment holiday as you would still be making payments and covering the interest plus a reduced capital value.
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Not sure I follow.

With HSBC I was paying amount X per month. I rang 15 months ago and told them I'll pay amount Y per month. Nothing happened to the term length or with the monthly payments reducing each month during the 5 term fix. It all goes into reducing the amount I'll pay in interest sooner.
Sorry If I'm being stupid here.
 
we agreed a 4.21% 5 year fix a few months ago, i was expecting rates to drop and hopefully change to 3.xx% but it seems they are on the up again. 4.21 not looking too bad in the grand scheme of things.
 
IvanDobskey said:
It's usually 10% per year overpayment for any fixed deal. I think there are a few that have upped it of late though.
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I don't have to worry about reaching the max overpayment without a lottery win on our mortgage, or when we are coming to the very end of our term (and lives :O )
 
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Raymond Lin said:
The rich gets richer.

Warren Buffet's advice in a time of financial crisis is to have lots of liquidity so that when you see a bargain, jump at it.
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A famous finance guy in the USA reportedly snapped up a ton of commercial real estate in the 2008 crash for the cost of 1/4 of the actual value (aka 25 cents on the dollar). He now owns hundreds of millions of dollars of real estate, and could reportedly buy a building every month from just the monthly rents that he receives. He was in the right place at the right time with the right amount of cash and ready to buy.
 
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jon86 said:
A famous finance guy in the USA reportedly snapped up a ton of commercial real estate in the 2008 crash for the cost of 1/4 of the actual value (aka 25 cents on the dollar). He now owns hundreds of millions of dollars of real estate, and could reportedly buy a building every month from just the monthly rents that he receives. He was in the right place at the right time with the right amount of cash and ready to buy.
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Manny Bugatti Hermes Koshbin?
 
Raymond Lin said:
Dave Ramsey?
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His show is hilarious and frustrating at times, I saw one clip of someone calling in who had $150k of debt but earned over $250k a year and it wasn't even mortgage debt or student loans. How on earth does someone smart enough to earn $250k a year yet can't figure out a way to clear a $150k debt
 
jaybee said:
Not sure I follow.

With HSBC I was paying amount X per month. I rang 15 months ago and told them I'll pay amount Y per month. Nothing happened to the term length or with the monthly payments reducing each month during the 5 term fix. It all goes into reducing the amount I'll pay in interest sooner.
Sorry If I'm being stupid here.
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i'm with Santander i can do 10% overpayments a yr .. just did 5k .. will do another 4.5k after xmas ... on the web banking it gives me a choice lower payments or time off the mortgage the 5k knocked off 1.5 yrs .. your bank should have the same sort of setup ..
 
Maccy said:
It is a long time, but again you don't know his circumstances - what if he'd fixed for 10 years at 1%? That's a better position to be in than having to negotiate a deal now, also with the option of over payments you're helping reduce that interest deficit. So I stand by my original statement - what an odd comment to make :rolleyes:
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It is an opinion, you don't know his circumstances either . You are making something out of nothing. I think your comment is very odd.
 
Not quite 1% but we were happy with the rate. We just valued security rather than a few quid.


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