Mortgages....

Was Looking at mortages over the weekend. Moving home and need about 130k on approx 260k property.

Best I've found so far is Santander 2 year fixed at 2.99% Works out about £616. HSBC have good ones too, 2.64% 2 year fixed but their arragment fees are a bit steep
 
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Third Opinion said:
Sounds scary but I am sure it will work out ok. Just get your loan paid asap.
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Oh it was all paid off in good order, just read my post and saw my English fail. Meant to say;

"it was a financial burden but one we could cope with comfortably so we just went for it"

We had to get a bit stingier on other things during the 24month repayment term but we coped :)

Now that I have another job we'll probably be looking to sell up and move on. In a 3 bed semi at the mo (well technically 2 bed as i turned 1 room inti a study)will be looking for a 3 bed detached (has to have a study) or a 4 bed detached with a room I can turn into a study :)
 
I actually have a quick question, how common is it to allow over-payments or one-off payments of the principle amount?

Im at least 2-3 years from considering buying a house (might have to get married first....) and know very little about mortgages. I would want a mortgage that doesn't stress me through very high monthly payment even although i would likely be able to afford to pay off the mortgage in a relative short time (between my and my other half we could pay a deposit of anywhere form 25-100% depending on what we want from a house) so do not want to get stuck with a 20-30 year mortgage when we might be able to pay it all off in 5-10 years. But committing to a 5 years morgtage would push the limits of our salaries which we want to avoid.


e.g., I purchased a car this year and got my first ever loan, was forced to only have a down payment of less than 50% of the value and forced to have the loan over 3.5 years, however I am paying 3-4 the monthly payment by paying off the principle amount, so I will be done in a total of 9 months instead of 42, saving a ton of interest.

I ant the same setup on a house mortgage, pay off as much as I can each month, sinking any bonuses into it etc., but if I was to loose y job then the minimum monthly payment would sill be manageable by my other half.
 
Almost all mortgages allow some kind of overpayment - %age of the outstanding balance per year, or %age of the monthly payment per month for example, and any time you finish a tied in period you can make a lump sum overpayment.

You can also get mortgages which have no ties, so you can pay anything above the minimum payment each month.
 
Thanks, I should really start researching mortgages. our original plan was simply to save up sufficiently and potentially borrow form parents to avoid the hassle and expense of a mortgage but now i am more leaning on the idea of buying a house as an investment in these times of stupidly low interest rates.

I am earning 0.01% interest in my US savings accounts. That's right 1 hundredth of a single percent !!. Even if I have $100K i would get a whopping 0.05%. My pension investment has lost 7% in the last 3 months, my managed stocks and shares portfolio has lost 40% from the investment value over the last 15 years, let alone inflation.
 
mrbell1984 said:
Yep, It's what I plan doing. At the moment (for me) overpayment is better than putting into a pension. :D
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Eek. Please be careful with this. Most employers for a decent job will match your contributions up to a certain level. Please make sure you're not missing out on that for the sake of overpaying your mortgage!
 
Hmmm i wonder if any of you can give me some advise...

My 5 year fixed rate ends this month and i go from whatever rate i was on to a 4.99% SVR, which drops the monthy cost by about £45, thing is due to falling house prices my place is still only worth the same amount as the mortgage (maybe even negative equity though not by much... need to get a valuation really) and I also let it out. Do i actually have any options towards remortgaging it? or am i stuck with what i've got?

Going to speak to santandar soon but could do with some idea as to what to expect.
 
The Halk said:
Do you have permission from the lender to let it out?

That aside, the SVR is as good as you'll get for a BTL at >80% LTV.
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Yep, just have to pay £95 a year fees to santandar for permission to let it out, renewed that about 3-4 months ago. Doubt there's anything even santandar will do for me then? :(
 
mrbios said:
Yep, just have to pay £95 a year fees to santandar for permission to let it out, renewed that about 3-4 months ago. Doubt there's anything even santandar will do for me then? :(
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Depends on the valuation really... it's a bad SVR, but if you're at 90% LTV and letting it out then you're pretty much stuck.

I wouldn't bother with a valuation unless you think there's a chance of it coming out at 80% or below LTV, or unless you're going to move back in.
 
mrbell1984 said:
Not started overpayment but I'm unsure if I want to benefit now by over paying or get more when I retire.

I work where payment in is doubled.
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Then until you reach the maximum of matched pension contributions that's the best place to put any money you can.

70 in your hand or 200 in the pension... it's an easy choice :)
 
The Halk said:
Depends on the valuation really... it's a bad SVR, but if you're at 90% LTV and letting it out then you're pretty much stuck.

I wouldn't bother with a valuation unless you think there's a chance of it coming out at 80% or below LTV, or unless you're going to move back in.
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Ok, thanks for the info :) looks like i'll just have to leave it as is for now then, luckily my tenants been there for over a year and half now so he seems quite happy.
 
mrbell1984 said:
Could get knocked over tomorrow. Not only that got to think of the interest on the mortgage in the first place.

Going to note figures down and see.
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Well, if you get knocked down tomorrow it won't matter what you have done.

The pension is the best place for it, it's tax efficient plus free money - but it's your choice. Paying off the mortgage sooner isn't a terrible idea in general terms... but most people are better off with matched pension contributions first and getting a small amount of savings - 1/2 a years salary for example - before dropping it into the mortgage.
 
The Halk said:
Well, if you get knocked down tomorrow it won't matter what you have done.

The pension is the best place for it, it's tax efficient plus free money - but it's your choice. Paying off the mortgage sooner isn't a terrible idea in general terms... but most people are better off with matched pension contributions first and getting a small amount of savings - 1/2 a years salary for example - before dropping it into the mortgage.
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Plenty of options though, so at the moment I am open.
 
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