Mortgage Rate Rises

Only expect rates to raise more. We've had much higher pre 2008. I bought this house with 4.9% I think lol back then.

I thankfully locked in a few months a go and start paying new rate next month.

5 years at 3.19. just finished 5 years on 1.89.

I tried to save a £300ish but I should have paid the ERc and got the 2.9% at the time.

Still. Mortgage is small now being fortunate enough to overpay so it really isn't a biggy. Hope to continue to over pay a chuck and get it paid off this 5yr period.
 
GSXRMovistar said:
Question, I've still got 4 years remaining on my mortgage with a relatively smallish amount left, my current fixed term ends next month and trying to decide what to do next:-

a) Avoid fees etc and use the opportunity to just pay off the remainder of the mortgage, or
b) Pay off the bulk but setup a new term for a tiny amount just keep something in place that retains a good credit score

Thoughts?
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mortgage and credit score stuff is a bit of a miff, if you have a good credit score you wont lose if because you have settled a mortgage, if you are in a position to pay off do it! why pay interest ? not to mention the token 1k setup fees!
 
GSXRMovistar said:
Question, I've still got 4 years remaining on my mortgage with a relatively smallish amount left, my current fixed term ends next month and trying to decide what to do next:-

a) Avoid fees etc and use the opportunity to just pay off the remainder of the mortgage, or
b) Pay off the bulk but setup a new term for a tiny amount just keep something in place that retains a good credit score

Thoughts?
Click to expand...
No brainer, pay it off.
 
Cool, intention was to pay it off but a couple of people commenting at the weekend about the whole credit rating bit. If no or minor impact to score then agree better to avoid the fees and make use of savings which are earning pretty much nothing at the mo.
 
GSXRMovistar said:
Cool, intention was to pay it off but a couple of people commenting at the weekend about the whole credit rating bit. If no or minor impact to score then agree better to avoid the fees and make use of savings which are earning pretty much nothing at the mo.
Click to expand...

You'll own a house. Outright. Unless you need to buy another house, you'll be fine credit wise.
 
It use to be be a thing to keep a mortgage, as once you have full ownership, you need to pay to store deeds securely. Which at least 20years a go cost a enough to keep a 10k mortgage going.

Perhaps not the case anymore?

Perhaps the digital world has changed that..but nothing would surprise me.
 
GSXRMovistar said:
Cool, intention was to pay it off but a couple of people commenting at the weekend about the whole credit rating bit. If no or minor impact to score then agree better to avoid the fees and make use of savings which are earning pretty much nothing at the mo.
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Pay it off. Both of mine are paid off in full (finally) and the feeling alone is worth it :)
 
Hodders said:
Dilemma for us.

Interest only mortgage matures in 3 years. Currently paying 0.5% above base (2.25%)

We have the ISA savings balance to pay the mortgage off today with about 30k left over.

If our ISAs will go up by more than the interest rate over the next three years we should wait. If they don't, we should pay it off.

Guesses?
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Wow, pretty similar to me. I was lucky enough to get on an interest free mortgage many years ago otherwise I wouldn't have been able to stay in my house.

It means there's a big old chunk to pay off, £124k. Luckily I've been able to save enough to pay it off with about 25k left over.

My distinction is that I'm getting progressively more disabled and my work future is not secure.

My IO repayments will have gone from £40/w to £120+ so saving £500/m will be a big win and far more than and savings would return.

Leaves me with not much of a safety net though with a precarious future.
 
lnoton said:
It use to be be a thing to keep a mortgage, as once you have full ownership, you need to pay to store deeds securely. Which at least 20years a go cost a enough to keep a 10k mortgage going.

Perhaps not the case anymore?

Perhaps the digital world has changed that..but nothing would surprise me.
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They dont issue deeds any more and it is now recorded at the land registry, although you can pay to have a copy at least thats what First Direct told me when I paid off my mortgage a few years back
 
dl8860 said:
Might be missing something but even with low LTV I think you'll be very luck to get 3% in January. AFAIK once you get to around 65% LTV, it doesn't help to be any lower.



I think the whole credit score thing is overblown on that front. If I were you and had the funds sat in cash to pay off the mortgage instead of signing up for a new deal, I would do that for sure. It's going to be at least 3.5% really that you'll be paying, to get that cash to earn you a guaranteed 3.5% AFTER inflation at the moment is not easy at all.
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Barclays just emailed me saying I can go onto a new deal so that is what I would be on come January. I better get it sorted then. 2 year tracker was 2.57% for two years.

To add to this I have just been off chat with Barclays and they recently extended the period you can renew from 90 days before end of fixed to 150 days but have yet to update the app or webpage to do this so when you log into your mortgage account you cannot actually do anything >_>. I guess I will have to get oldskool and see a mortgage advisor in person :P
 
GSXRMovistar said:
Question, I've still got 4 years remaining on my mortgage with a relatively smallish amount left, my current fixed term ends next month and trying to decide what to do next:-

a) Avoid fees etc and use the opportunity to just pay off the remainder of the mortgage, or
b) Pay off the bulk but setup a new term for a tiny amount just keep something in place that retains a good credit score

Thoughts?
Click to expand...
Sounds like you're in a similar position to me. Although I have a couple of years to go on the fixed term. In the current climate with rising interest rates, as soon as the fixed term ends, I'll be paying as much off as I can. If you can pay it all off, definitely do it.
 
GSXRMovistar said:
Cool, intention was to pay it off but a couple of people commenting at the weekend about the whole credit rating bit. If no or minor impact to score then agree better to avoid the fees and make use of savings which are earning pretty much nothing at the mo.
Click to expand...

I have never had a credit card in my life. Either debit or paypal. When you own your own house. Getting any sort of loan in the future is not even a problem. People owning their house outright is massively skewed once you get over 50. The percentage below that is tiny.
 
_Jimlad_ said:
anyone considered a 2 year variable ? just out of interest
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Yes, us. Our current 1.49% deal ends in Jan 24 - we will be in peak rate rises of potentially 5-6% mortgages with a base rate of potentially 4% if they keep rising as they are currently. Thus, we would look at a tracker. I suspect rates will come back down to where they are today if we enter a recession and therefore, we wouldn't want to be stuck in a 5 year 6% fixed deal when we could track at potentially 3%.

Our mortgage would jump to just over c£3000 a month from £1750 at 6%.
 
Chris344 said:
Yes, us. Our current 1.49% deal ends in Jan 23 - we will be in peak rate rises of potentially 5-6% mortgages with a base rate of potentially 4% if they keep rising as they are currently. Thus, we would look at a tracker. I suspect rates will come back down to where they are today if we enter a recession and therefore, we wouldn't want to be stuck in a 5 year 6% fixed deal when we could track at potentially 3%.

Our mortgage would jump to just over c£3000 a month from £1750 at 6%.
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Start applying now, a lot of lenders will let you lock in a rate for 6 months
 
adam cool dude said:
People owning their house outright is massively skewed once you get over 50. The percentage below that is tiny.
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The idea of being mortgage free by 50 has always been a goal but if I can get there a few years earlier then I guess a bonus, although that will probably change with another move at some point in the future.
 
GSXRMovistar said:
The idea of being mortgage free by 50 has always been a goal but if I can get there a few years earlier then I guess a bonus, although that will probably change with another move at some point in the future.
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Hopefully we will be the same. Although we plan to get a buy to let when we finish so we can retire in our early 60's instead of our early 70's that it will more than likely be!
 
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