Mortgage Rate Rises

413x said:
I've got the 5.2pc trading 212 flexible isa.
As you can take it in and out and not lose the total year allowance it's very attractive

Mortgage = 1.93pc
Isa = 5.2pc
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It is but do bear in mind the flex only works with the same provider. If you take money out you get the allowance back but you have to deposit it back with t212 again in the same tax year.
 
I contacted Nationwide earlier and agreed to do underpayments for a bit, I have a large enough overpayment buffer to pay for the mortgage for 3 years without paying anything in at the current rates.

I decided to drop down to £100 payment instead of £0 though to counter act the interest somewhat, so basically gone to interest only.

The extra cash I don't spend will instead go into my savings and investment funds.
 
I'm really struggling to overpay the mortgage as we need a new bathroom and kitchen. My goal is to be mortgage free before 55, but when you need new carpets, kitchen, bathroom etc etc with the usual wear and tear items it's a real struggle.

Not sure how people are doing it.
 
Simon said:
Begs the question. Why did you overpay in the first place ?
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Error in judgement? :D

I should have thrown into investments over the last decade rather than paying down the mortgage but can't undo time sadly.

For a while savings rates were pretty terrible at least. Since savings rates went up I got more interested in investments and learnt more stuff about things like index funds/ETFs, changed my pensions around etc.

Feel like I'm on the right path now for positioning where funds get invested in the future, but may as well claw back some of that mortgage overpayment and get better interest on it now.
 
glenimp617 said:
I'm really struggling to overpay the mortgage as we need a new bathroom and kitchen. My goal is to be mortgage free before 55, but when you need new carpets, kitchen, bathroom etc etc with the usual wear and tear items it's a real struggle.

Not sure how people are doing it.
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These things usually become more affordable after you've been in the property for a while and had a few years of income growth, but there's no magic answer. You can do anything but not everything.
 
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Or they have simply lived in the property for long enough that the doubt has been somewhat inflated away via general wage growth.

Mortgages are eroded by inflation over time.
 
Purchased first house about 11 years ago now, moved twice since (once was a bad move and I sold at a loss + lost the £10K stamp duty!) and am now here for the longer term, better location/house than my last one I feel.

Simply my deposit was good to start with, and has only really improved over time, so remaining mortgage isn't £0 left but it's manageable, and with current rate overpaying is easy if I wanted to.

When the rates change for my deal ending in a couple of years it will be harder to overpay as much due to interest eating more of the payments, but I'll probably still try to pay it down until it gets more manageable.

Not in higher earnings bracket and have never been, just been good at saving for things and was saving for my first deposit when I started work, spent a good 6 years or so just saving £1k/month if I could. Wound up with a little under that in the end but wasn't miles off my target.

Wouldn't be able to get much in say London, but not in the cheapest area of the country either.

House Prices in Fareham

Properties in Fareham had an overall average price of £347,636 over the last year.

The majority of sales in Fareham during the last year were semi-detached properties, selling for an average price of £334,210. Terraced properties sold for an average of £290,018, with detached properties fetching £553,609.

Overall, sold prices in Fareham over the last year were 4% down on the previous year and 5% up on the 2021 peak of £330,084.
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glenimp617 said:
I'm really struggling to overpay the mortgage as we need a new bathroom and kitchen. My goal is to be mortgage free before 55, but when you need new carpets, kitchen, bathroom etc etc with the usual wear and tear items it's a real struggle.

Not sure how people are doing it.
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I done it by getting a better paid job BUT this isn't an option for everyone.

Also I have no wife or kids so that made it easier to manage overpayments and finances.
 
HungryHippos said:
Purchased first house about 11 years ago now, moved twice since (once was a bad move and I sold at a loss + lost the £10K stamp duty!) and am now here for the longer term, better location/house than my last one I feel.

Simply my deposit was good to start with, and has only really improved over time, so remaining mortgage isn't £0 left but it's manageable, and with current rate overpaying is easy if I wanted to.

When the rates change for my deal ending in a couple of years it will be harder to overpay as much due to interest eating more of the payments, but I'll probably still try to pay it down until it gets more manageable.

Not in higher earnings bracket and have never been, just been good at saving for things and was saving for my first deposit when I started work, spent a good 6 years or so just saving £1k/month if I could. Wound up with a little under that in the end but wasn't miles off my target.

Wouldn't be able to get much in say London, but not in the cheapest area of the country either.
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How close are you to Farnborough? Need a bed, willing to pay at least 20
 
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