So what mortgage have you got and why?

[MrChips]

Trying to get a 5yr fix at 2.34% at the moment. Lost out on the Natwest 2.09%. LTV is 58% but it's a massive mortgage. We're going fixed, as I know that over 5yrs, we'll have repayed over £60k capital, at which point the rates need to be above 5% before things start getting tight. (we have another house we can sell if that does happen)

Heart is saying go for a lower rate tracker or non fixed, but the rates don't seem that much lower, so even a 0.5% rise within 2yrs would see us better off on the fixed.

Thing is, we fixed at 5.4% for 5yrs in July 2007, about 3 months before they all dropped, so i'm not to be trusted!

[mike9009]

LTV about 45%. Have two Nationwide mortgages on the same property (not sure why it was set up like that??)

Mortgage 1 is BOE base rate plus 0.25% lifetime tracker (lovely)
Mortgage 2 is 2.19% Fixed two year.

We took mortgage 1 out in late 2007, which has meant plenty of overpayments into mortgage 2. Just very lucky with what happened really. Mortgage 2 is fixed for another year - not quite sure of the motivation but wanted some stability a year ago, if interest rates went up.

Managed to reduce the mortgage by 6 years in 8 years of owning this property!

I have a stty endowment taken out in 1997 which covers some of the mortgage (should reach £36k but will probably only reach £25k in the next 6 years! ) - but my aim is to keep overpaying and have the endowment as a nice little present at the end.

[anonymous-user]

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same here lifetime tracker with IF at .69 ABR as the muppets at the Woolwich wouldn't port the same LTV at .49 ABR (saying that neither will IF now), happy with the rate and don't think it will be beaten. Happy to pay all the money into current AC and just use the account for cheap finance.
Just keep your eyes peeled and do your own research, the last 2 mortgages i signed i undercut anything the IFA proposed.

[gd49]

worsy said:

Nationwide 5 year fixed at 3.09. Because I thought interest rates would rise and I always get it wrong

Same here, 2.89 5 year fix with Santander, started last April. Still time to be proved right but it's looking less and less likely and I keep thinking of the overpayments we could have made on a tracker.

[bogie]

I have fixed 3x in the last 25 years of mortages and lost out each time. Been with C n G / Lloyds throughout. In 2007 we moved again, additional mortgage on 2 year fix. Then the recession hit, we let it go revert to base+2% for term and have been hundreds per month better off since

So leaving it at that, currently paying 2.5% and overpaying a few hundred over the original payment (was over 6% when we took it out) and it will be gone in 9 years now....

I reckon long term say 15-25 years, then just SVR works out better (at least in my experience of the last 25 yrs). You always pay for the fix and have to time it just right to break even let alone be better off..

[uuf361]

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

I'm on this rate too (originally is base plus 2.49% when I took out in December 2012 but due to the lack of penalty and tie in I just it when they brought the rates down.

Never had anything other than trackers...

[Craikeybaby]

3 year fixed, as rates weren't going to go down when we took it out.

[ukbabz]

Just started our mortgage as purchased our first house on 11/12/15. 80% LTV and on a 2 year fix for 1.89%. as we wanted initial security when setting up house of outgoing and option to overpay if we needed. Will reassess in 2 years time to see what's available and what it'll cost us!

[33q]

I'm 60 and retired so renewals are trickier

Currently on a 5 year 3.00% fixed from Halifax ends December 2018.

Most of it is interest only....so I need to work out how to pay it off....but I do have some rentals I could sell.

I liked the offset idea and had one for 12 years or so. Had a great scheme stoozing credit cards and offsetting but they now they are rarely offered.

It was with Bank of Scotland who made such a mess of the admin that I got 0% for a year and loads of compensation. Cheekily as soon as they had sorted it out I moved on.

[oyster]

SlimJ said:

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same on our house but with 50% LTV. Like the freedom of being able to overpay, term is 20 years but at current rate of payment it will be done in under 9 years!

Why do you want to overpay when the rate is so low?

OK admittedly 1.99% is borderline in being able to be beaten but surely it's better to not have money tied up in a house should you need it?

[Zoon]

oyster said:

SlimJ said:

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same on our house but with 50% LTV. Like the freedom of being able to overpay, term is 20 years but at current rate of payment it will be done in under 9 years!

Why do you want to overpay when the rate is so low?

OK admittedly 1.99% is borderline in being able to be beaten but surely it's better to not have money tied up in a house should you need it?

"20 years but at current rate of payment it will be done in under 9 years"

[e8_pack]

Zoon said:

oyster said:

SlimJ said:

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same on our house but with 50% LTV. Like the freedom of being able to overpay, term is 20 years but at current rate of payment it will be done in under 9 years!

Why do you want to overpay when the rate is so low?

OK admittedly 1.99% is borderline in being able to be beaten but surely it's better to not have money tied up in a house should you need it?

"20 years but at current rate of payment it will be done in under 9 years"

Yes, but the money you are putting into paying the mortgage can be invested for a better return, keep it accessible and when the market turns you can pay it off if you need too. But you effectively get a very low return for the money you are using to pay it off i.e. 1.99%. That's how i'm seeing it anyway and one reason why i'm not overpaying..

[e8_pack]

ukbabz said:

Just started our mortgage as purchased our first house on 11/12/15. 80% LTV and on a 2 year fix for 1.89%. as we wanted initial security when setting up house of outgoing and option to overpay if we needed. Will reassess in 2 years time to see what's available and what it'll cost us!

Who's that with? sounds very low for 80% LTV and a fixed rate.

[ukbabz]

e8_pack said:

Who's that with? sounds very low for 80% LTV and a fixed rate.

Accord mortgages, we had the agreement with them back in August but due to delay in the sale didnt buy til December.

[0000]

5 year fixed at 2.94%. Max'd out as an FTB with £300k of borrowing, didn't need rates to go up as a contractor with an uncertain future. Should be able to pay it off at the end though.

[LeoSayer]

First Direct Offset at SVR of 3.69%. I stayed with them after the fixed rate term expired and I have my bank and savings accounts with them as well.

The mortgage was fully offset until I used it recently to pay for the construction of my garage.

The rate is less important than the convenience and flexibility of having the mortgage facility available at no notice should I need it. I can’t see me changing mortgage company or bank in the near future as the customer service is very good.

[egor110]

e8_pack said:

Zoon said:

oyster said:

SlimJ said:

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same on our house but with 50% LTV. Like the freedom of being able to overpay, term is 20 years but at current rate of payment it will be done in under 9 years!

Why do you want to overpay when the rate is so low?

OK admittedly 1.99% is borderline in being able to be beaten but surely it's better to not have money tied up in a house should you need it?

"20 years but at current rate of payment it will be done in under 9 years"

Yes, but the money you are putting into paying the mortgage can be invested for a better return, keep it accessible and when the market turns you can pay it off if you need too. But you effectively get a very low return for the money you are using to pay it off i.e. 1.99%. That's how i'm seeing it anyway and one reason why i'm not overpaying..

Surely it's better to be mortgage free?

Then your wages are all yours rather than a large percentage instantly going on the mortgage?

[SlimJ]

egor110 said:

e8_pack said:

Zoon said:

oyster said:

SlimJ said:

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same on our house but with 50% LTV. Like the freedom of being able to overpay, term is 20 years but at current rate of payment it will be done in under 9 years!

Why do you want to overpay when the rate is so low?

OK admittedly 1.99% is borderline in being able to be beaten but surely it's better to not have money tied up in a house should you need it?

"20 years but at current rate of payment it will be done in under 9 years"

Yes, but the money you are putting into paying the mortgage can be invested for a better return, keep it accessible and when the market turns you can pay it off if you need too. But you effectively get a very low return for the money you are using to pay it off i.e. 1.99%. That's how i'm seeing it anyway and one reason why i'm not overpaying..

Surely it's better to be mortgage free?

Then your wages are all yours rather than a large percentage instantly going on the mortgage?

This, basically.

Prefer to be mortgage free ASAP. We both still have a considerable amount of money put by as a safety cushion but could use this to reduce the term further if rates started moving up quickly.

[Revisitph]

LeoSayer said:

First Direct Offset at SVR of 3.69%. I stayed with them after the fixed rate term expired and I have my bank and savings accounts with them as well.

The mortgage was fully offset until I used it recently to pay for the construction of my garage.

The rate is less important than the convenience and flexibility of having the mortgage facility available at no notice should I need it. I can’t see me changing mortgage company or bank in the near future as the customer service is very good.

Agree - offset 1st D base +1% (which was a reasonable rate 18 yrs ago) - similar to the above poster I keep it going even though has usually been in surplus for a few years now because, at current interest rates chasing around for other places to put cash deposits is not worthwhile after tax and accountancy. Effectively a useful flexible loan account for spikes (house renovations, cars, up to three sets of uni fees falling due in the early part of each year) of expenditure, though 1D have been writing to highlight that the FCS doesn't cover net deposits in loan accounts. However, I doubt HSBC is going to do an Iceland bank and go bust.

Re. customer service, they used to be outstanding but I've noticed that this has slipped in the last year or so - queuing on the phone, previously unheard of, and some admin errors (not sending ISA transfer forms) etc. I wonder if the move by many, me included, to almost exclusively doing our banking online has led to a reduction in call centre staff and increased pressure on those who remain.

[e8_pack]

egor110 said:

e8_pack said:

Zoon said:

oyster said:

SlimJ said:

C0ffin D0dger said:

Switched provider, lifetime tracker with HSBC, base rate + 1.49 so currently 1.99%. Like the flexibility of it i.e. no tie-in, unlimited overpayments, etc. but it will be of concern if the rates start to rise.

Same on our house but with 50% LTV. Like the freedom of being able to overpay, term is 20 years but at current rate of payment it will be done in under 9 years!

Why do you want to overpay when the rate is so low?

OK admittedly 1.99% is borderline in being able to be beaten but surely it's better to not have money tied up in a house should you need it?

"20 years but at current rate of payment it will be done in under 9 years"

Yes, but the money you are putting into paying the mortgage can be invested for a better return, keep it accessible and when the market turns you can pay it off if you need too. But you effectively get a very low return for the money you are using to pay it off i.e. 1.99%. That's how i'm seeing it anyway and one reason why i'm not overpaying..

Surely it's better to be mortgage free?

Then your wages are all yours rather than a large percentage instantly going on the mortgage?

1.99% isn't a large percentage though. You can get better returns elsewhere.