Mortgage Rate Rises

ivrytwr3 said:
You may also lose your job, suffer a life changing injury etc.

For me we are choosing to throw any extra money at the mortgage, therefore if anything ever happens, you will always have a roof over your head. Plus, although the future seems a very long way away for you both - trust me, you blink and you're old :(

I'm not saying to live frugally, as of course, life is for living, but we took out our first mortgage in 2005, new property in 2010 and will have paid off the mortgage by 2024 (mortgage £174k, property now worth approx £300k).

I'm more of plan for the future as oppose live for the now!! No matter what happens, we will always have a home.
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We're still overpaying- approx 25% extra a month, over the standard payment. We were overpaying ~50% until my wife started moaning at me recently.
 
ivrytwr3 said:
You may also lose your job, suffer a life changing injury etc.

For me we are choosing to throw any extra money at the mortgage, therefore if anything ever happens, you will always have a roof over your head. Plus, although the future seems a very long way away for you both - trust me, you blink and you're old :(

I'm not saying to live frugally, as of course, life is for living, but we took out our first mortgage in 2005, new property in 2010 and will have paid off the mortgage by 2024 (mortgage £174k, property now worth approx £300k).

I'm more of plan for the future as oppose live for the now!! No matter what happens, we will always have a home.
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I'm opposite. I'm paying out fixed rate and saving half and spending half of my extra disposable.

Could get diagnosed with a terminal disease next week. I'm very keen on going on holidays etc while I can.

I'll be using equity release when I'm older as you only pay it back after you die (I believe)
 
after nearly packing my bags and leaving this world end of January due to appendix bursting, doctors sending me home to rest etc and things getting very badly infected I can tell you that balance is the best idea. It opened my eyes if anything. I’m only 32 and never had any health issues so it was a shocker and a reminder how quickly it can go wrong. We’re very much paying our mortgage etc but we’re still leaving enough to enjoy life and experience things while we can.

It depends on what makes you happy but for me large amounts of money in the bank sitting, doing nothing is not happiness. I’ve got a “gold” fund in case poo hits the fan but that’s it. Rest goes on living.
 
grudas said:
after nearly packing my bags and leaving this world end of January due to appendix bursting, doctors sending me home to rest etc and things getting very badly infected I can tell you that balance is the best idea. It opened my eyes if anything. I’m only 32 and never had any health issues so it was a shocker and a reminder how quickly it can go wrong. We’re very much paying our mortgage etc but we’re still leaving enough to enjoy life and experience things while we can.

It depends on what makes you happy but for me large amounts of money in the bank sitting, doing nothing is not happiness. I’ve got a “gold” fund in case poo hits the fan but that’s it. Rest goes on living.
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I had a scare too. But only a scare. But for the first time I faced those thoughts. It's changed my entire outlook. As it will!
Kind of thankful it happened in some ways.
 
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413x said:
I'm opposite. I'm paying out fixed rate and saving half and spending half of my extra disposable.

Could get diagnosed with a terminal disease next week. I'm very keen on going on holidays etc while I can.

I'll be using equity release when I'm older as you only pay it back after you die (I believe)
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Striking the balance is key really - if you can maintain your current comfortable lifestyle AND overpay/save, that's a very fortunate place to be. Avoiding lifestyle creep is a must.

Overpaying within the 10% limit is also good because as the years on the fixed term go by, you can use the reduction in that limit as extra disposable/emergency fund top up/other savings. Can always throw a chunk of savings at it come the renewal if you've no other need for it and the rates make it sensible.
 
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MichaelAwkward said:
Striking the balance is key really - if you can maintain your current comfortable lifestyle AND overpay/save, that's a very fortunate place to be. Avoiding lifestyle creep is a must.

Overpaying within the 10% limit is also good because as the years on the fixed term go by, you can use the reduction in that limit as extra disposable/emergency fund top up/other savings. Can always throw a chunk of savings at it come the renewal if you've no other need for it and the rates make it sensible.
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That's the plan. If rates are still 5pc.plus in 2027 and my savings aren't making 5pc then I'll chuck half in at renewal like I did last time.


I like having it as savings for things like job losses etc.
 
Chris344 said:
The Americans can claim (capped) tax savings against their mortgage payments!
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While it is possible to itemise deductions and take a mortgage interest deduction, the vast majority of Americans just take a "standard deduction", which was around $24K last year for married, filing jointly tax payers... i.e. $12K each. Our mortgage interest paid last year was only about $7K, and we didn't have $17K of other itemised deductions, so we took the standard deduction.
 
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jon86 said:
While it is possible to itemise deductions and take a mortgage interest deduction, the vast majority of Americans just take a "standard deduction", which was around $24K last year for married, filing jointly tax payers... i.e. $12K each. Our mortgage interest paid last year was only about $7K, and we didn't have $17K of other itemised deductions, so we took the standard deduction.
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I wouldn’t mind a joint 24k tax deduction just for having a mortgage.
 
Tax relief on a mortgage? What a shockingly bad idea.
More pain for the poorest (where's the lost tax gonna be recovered from?) to prop up house prices. It's probably a vote winner but all it does it go to the lenders, builders and downsizes. Everyone else loses out.
 
Kamakazie! said:
Tax relief on a mortgage? What a shockingly bad idea.
More pain for the poorest (where's the lost tax gonna be recovered from?) to prop up house prices. It's probably a vote winner but all it does it go to the lenders, builders and downsizes. Everyone else loses out.
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I'd win significantly and would therefore offer to buy you a pint if you could vote it through (y).
 
Kamakazie! said:
Tax relief on a mortgage? What a shockingly bad idea.
More pain for the poorest (where's the lost tax gonna be recovered from?) to prop up house prices. It's probably a vote winner but all it does it go to the lenders, builders and downsizes. Everyone else loses out.
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Yep but these people want more for themselves and less for everybody else. Politicians are self serving ***** anyway and will likely do anything to keep on getting what they can get.
 
krooton said:
Tbh, I think tax-relief on mortgages and rent would be good, shelter is a basic necessity after all.
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Need to be able to make profiteering on property not a thing though. No BTL’s no foreign ownership, fixed amounts of interest on mortgages, rent controls ect.

For lots just having roof over your head is hard enough.
 
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Our mortgage deal ran out on the 31st of May and we sent off the banks form on May 15th stating which product we wanted to transfer which is 2 years at 5.99% which works out at £540 per month. I know they got because they called me to clarify if it was me as my signature didn't match. Yesterday we got a letter saying our mortgage term has expired and we were being transferred to a variable rate mortgage at 4.5% which will be £709 per month.

Firstly, surely its not our fault that they are taking a long ti process product forms and therefore we should not be charged at the variable rate right?
Secondly, how comes the variable rate % is lower than our fixed % but it is more expensive?
 
krooton said:
Tbh, I think tax-relief on mortgages and rent would be good, shelter is a basic necessity after all.
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It's a terrible idea. We need heat taken out of the housing market. The post covid stamp duty concessions did nothing but encourage people to move who had little need to move and hence pushing prices up for everyone. The UK's housing market needs a degree of regulation in order to prevent upcoming generations not being able to afford to live away from their parents. Tax concessions to drive the market for the middle classes are not what is required. Support needs to be far more targeted towards first time buyers. We should also be looking at the further education system to reduce the debt quotient that young people are entering the workforce with. Sadly the country is broke and no-one has the imagination to develop a progressive taxation regimen.
 
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