Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Depends if you're invested in bonds etc?
The low rate period has been amazing for my SIPP.
Associate
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- 1 Jun 2004
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Does anyone know if you've received a mortgage offer at a certain pc and before you complete the rates drop, do you get the lower pc or do you get the pc at the time you received the offer? Cheers
Deleted User 298457
Deleted User 298457
You get the offer you signed up for. You can generally cancel without penalty and agree the new, lower rate though.
It depends on how it's handled I believe. We're using a broker for our current mortgage offer/application and up until the point of exchange we were able to get multiple rate changes on our offer from Santander (from 4.64 to 4.46 to now 4.36).
We also weighed up cancelling the application/offer from Santander at one point to move to Barclays who were offering a better rate (but Santander then matched that rate a few days later) - but all we've done is speak to our broker each time to get the new rate and then received updated documentation through from Santander with the updated rate/terms etc.
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I had an offer from NatWest for around 4.25% as this was the cheapest I could get on an offer to renew with 6 months to go.
I just kept my eye on the market and managed to get a renewl at 4.01% with my existing provider 2 months later as they would only offer renewls with 4 months left. I Just happen to luck out on that day as there was some good news..
So I just signed the paper work for the 4.01%, the next day the rates went back up again and send an email to cancel the 4.25%
Best to keep on the market, there's nothing stopping you from having serveal mortage offers and for them all to be "processing" at the same time. You just got to keep an eye on the costs of the paper work, but for me it was just £17 pounds to get a digital copy of my land registration form.. which I needed anyway as my previous copy was in paper format.
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If they drop just keep rejecting and getting a new offer. I did this 5 or 6 times with my last offer when the rates we dropping from their initial peak earlier last year. It took around 20 minutes on the phone each time which was a minor pain but has saved me significant £££ overall.
Deleted User 298457
Deleted User 298457
Ah, think we are talking cross purposes. I am talking about remortgaging/renewal.
Unless you live in Monaco 1.8m in retirement to be comfortable is pretty silly no?
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Deleted User 298457
Deleted User 298457
1.8M in future money is like 1.2M. Depending on how long you live, that's like 30k/yr. For two people/ a family that isn't "much".
I expect my mortgage to be paid off before I retire. And a good chunk of savings with a modest pension.
Only with equity release could I expect a retirement with 1mln +
Think my noneI pensioned savings are in the realms of 50k at the moment. (excluding house). I house value sits at 330k with 198k mortgage left.
Only with equity release could I expect a retirement with 1mln +
Think my noneI pensioned savings are in the realms of 50k at the moment. (excluding house). I house value sits at 330k with 198k mortgage left.
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The bottom up approach suggest that a person/couple needs about 75% of their current expenses as long as they are living within their means at the moment for their penison.
In reality, outgoings are slashed once a person retires. It's expected that the house has been paid for so there's no mortage to pay for, there's no need to travel to work everyday; so travel expensives are removed and having a second wardrobe and food shop just for work is no longer needed, no matter how small it was before.
The three major things that will cost during retirement are normally holidays, cars and kids that are yet independent. With medical care much later on in life.
You will no longer be saving but depending on how you decide to access your penison has a massive impact on how far the pot goes. If you choice to by an annuity; you're get a certain amount for the rest of your life, but it's a gamble if you and your missus will out live the point for when it's breaks into profit. If you use a draw down method and take lump sums from the pot, the rest of the pot will still be invested and earning.
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Silly? No, sensible. Too many people massively burying their heads in the sand about how much they will need to fund retirement at a similar lifestyle. Mortgage costs will likely be gone but you also have a lot more time available to spend. Even in today's money, 1.8m is £72k a year/36k per couple before tax at a 4% drawdown rate.
To be fair I live quite close to what I would in a pension situation.
Work from home, main expenses/luxuries being holidays, and junk (ie lego)
The only cost that would go to zero is mortgage and that would be 900 saved.
Stuff like lego would go.
Of course as I save quite a lot you could wipe that out.
Our core joint bills (without unexpected issues) is about 1100 a month.
2000 with mortgage
I think for a retirement 1500 a month would be viable.
2000 would be nice.
So yeah I'd say 75pc is probably right.
(the above is now, inflation would need accounting for)
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Someone said to me that when you retire you have to change from saving money to spending, for me this has been a psychological barrier, I have been saving all my life and paying of debts quickly. Now I have no debts, a small income and I’m cash rich, I want to save some cash to give to the kids when they buy a house, if they ever do. I expect a large portion of the remaining will disappear down the black hole of care home costs.
You need to compromise between spending and saving during your working life, for me, because I suffered the ruthless Maggie whirlwind during my early career, the priorities were becoming mortgage free and financially secure, I’m not sure that would be possible or desirable these days.
You need to compromise between spending and saving during your working life, for me, because I suffered the ruthless Maggie whirlwind during my early career, the priorities were becoming mortgage free and financially secure, I’m not sure that would be possible or desirable these days.
Yes, per couple, but I think 72k is quite a lot.
I would aim for about £1500 each, also don’t forget the state pension will kick in at some point so you can front load any draw down.
I'm a natural saver.
And it's gone too far. A death in the family has shaken me a bit to not just endlessly save. I don't want to have something happen and end up regretting a bank balance vs experiences.
But it is hard not to "save"
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