You know its 2024, right?so if you paid 120k for your house in 2002 (20 years ago)
They dont keep all the interest.it's just be interesting to see if the intreast that is changed by mortage lenders is eaten away by inflation..
You know its 2024, right?so if you paid 120k for your house in 2002 (20 years ago)
They dont keep all the interest.it's just be interesting to see if the intreast that is changed by mortage lenders is eaten away by inflation..
Paid off the mortgage early made the last payment two weeks ago paperwork just arrived in the post
I don't understand what you are getting at?
They dont keep all the interest.
no lies, i'd be sweating if my mortgage payments reach that high a % of my net monthly, even if it's rule-of-thumb or not lolIts within the "Rule of Thumb" (bear in mind I am talking NETT Pay, not Gross):
no lies, i'd be sweating if my mortgage payments reach that high a % of my net monthly, even if it's rule-of-thumb or not lol
mine's currently stting at 18% (FTB 2 years ago, single/no kids, single income)
It's usual to be a much larger proportion when you first buy and reduce significantly over time as your wages increase. Rate rises are setting that back for many, of course.
Changing the term outside of an overpayment will usually trigger an affordability assessment.If I overpay right now am I best reducing the term. Then when we remortgage could potentially change the term back?
There'll be 15 years remaining, so changing to 20 years is certainly an option.You can change what you want when you remortgage.
My base payment currently is under 35% net income....just.
When we remortgage if rates are as they are now it will become about 50%.
yeah. i'm single, so my income = household incomeAre we talking household income here?
same. everything is owned outright bar the mortgage. if there's a big spend (such as my recent solar PV system), i get a 0% CC and put minimum payments until the last payment then pay it off as a lump sum.Needs must at times... My other outgoings are not huge - No loans or credit card balances, car is owned outright. If I remove what is put into savings pots (discretionary), then total bills including food come to 70% of Nett giving 30% of disposable income per month.
Its just an exercise in curiosity.
Essentially he wants to see if the interest paid over the mortgage has been eroded away by the increase in house price e.g.
- Paid £100,000 for house in 1995
- Use the calculator in his link to estimate what £100,000 is now equal to in today's money - £198,000 (rounded from that calculator)
- House is now "worth" £300,000 today (price if you were to sell it today)
- £300,000 less £198,000 (value of house currently less value of house in 1995 adjusted for inflation) = £102,000 "gained value"
- Total Paid in Deposit+Mortgage Payments = £250,000 (so £100,000 for house (point 1) and therefore £150,000 paid in interest)
- £150,000 interest paid less £102,000 "gained value" = £48,000 in interest paid (comparatively)
At least I think that's what he is trying to see.
Still a lot of people on deals 1-2%. Shock will continue for some time.
If they kept taking new mortgages then they would be near the beginning still. If you want to take out people near the end of their mortgages, take out people near the beginning too and I suspect it averages out Wages may have stagnated for the same role/seniority, but as people progress through their careers they get promoted and earn more.I think plenty of people keep upsizing for a while during their careers though which wipes out any of that. And wages have stagnated massively over the past 20 or so years.
As a brief example. Someone who bought a £500k house with a £100k deposit would be paying about £1700/month when rates were around 1.9%. To have an 18% cut of your net pay going to a mortgage would require your post tax salary to be £8500/month on a £1700 monthly payment.
Currently that same mortgage would require you to be bringing home about £12k/month after tax.
I would wager that very few people on that sort of money have that sort or mortgage.
I think the stats would be far more interesting and relevant if you took out the people near the end of their mortgages. I think the average person who is in the heart of paying down a mortgage would love to only be putting 18% of their net pay into it.
Its just an exercise in curiosity.
Essentially he wants to see if the interest paid over the mortgage has been eroded away by the increase in house price e.g.
- Paid £100,000 for house in 1995
- Use the calculator in his link to estimate what £100,000 is now equal to in today's money - £198,000 (rounded from that calculator)
- House is now "worth" £300,000 today (price if you were to sell it today)
- £300,000 less £198,000 (value of house currently less value of house in 1995 adjusted for inflation) = £102,000 "gained value"
- Total Paid in Deposit+Mortgage Payments = £250,000 (so £100,000 for house (point 1) and therefore £150,000 paid in interest)
- £150,000 interest paid less £102,000 "gained value" = £48,000 in interest paid (comparatively)
At least I think that's what he is trying to see.
My 1.89% fix is up July 2025. Can start looking for a new deal in February. Not looking forward to that.