Discussion
I need to remortgage my house but biggest problem is I have my own business and my salary is £692 a month plus dividends I take home more now than I did when earning £45000 a year
I need a mortgage of £200 000 but would like £220 000, my house is probably worth around £420 00 to £450 000 I am 55 and my wife earns approx £1200 a month any advice
Thanks in advance
I need a mortgage of £200 000 but would like £220 000, my house is probably worth around £420 00 to £450 000 I am 55 and my wife earns approx £1200 a month any advice
Thanks in advance
I am not a contractor, I am one of three directors and we all own a third share of our relatively new business 18 months in fact last financial year we turned over £1.2 million but as a new business we cannot take too much out but we all earn a reasonable income just need a mortgage company that can see my ability to pay
Unfortunately I cannot help OP, but this point might be of interest to readers.
I was talking to my son, who is able to obtain a £400,000 mortgage.
The annual interest payment would be about £8,000, plus capital repayment.
Some of us remember mortgage rates around 15%, but not wanting to take an extreme, I asked him if the repayments would be affordable with interest rates at 10%.
Interest payment then would be £40,000 per year, plus capital repayment.
Younger home owners, who have only known post 2008 interest rates, might be in for quite a shock one day.
Edited by Jon39 on Monday 16th October 22:19
Jon39 said:
Unfortunately I cannot help OP, but this point might be of interest to readers.
I was talking to my son, who is able to obtain a £400,000 mortgage.
The annual interest payment would be about £8,000, plus capital repayment.
Some of us remember mortgage rates around 15%, but not wanting to take an extreme, I asked him if the repayments would be affordable with interest rates at 10%.
Interest payment then would be £40,000 per year, plus capital repayment.
Younger home owners, who have only known post 2008 interest rates, might be in for quite a shock one day.
That is exactly why interest rates are being kept artaficilly low IMO.I was talking to my son, who is able to obtain a £400,000 mortgage.
The annual interest payment would be about £8,000, plus capital repayment.
Some of us remember mortgage rates around 15%, but not wanting to take an extreme, I asked him if the repayments would be affordable with interest rates at 10%.
Interest payment then would be £40,000 per year, plus capital repayment.
Younger home owners, who have only known post 2008 interest rates, might be in for quite a shock one day.
Edited by Jon39 on Monday 16th October 22:19
Granfondo said:
Jon39 said:
Unfortunately I cannot help OP, but this point might be of interest to readers.
I was talking to my son, who is able to obtain a £400,000 mortgage.
The annual interest payment would be about £8,000, plus capital repayment.
Some of us remember mortgage rates around 15%, but not wanting to take an extreme, I asked him if the repayments would be affordable with interest rates at 10%.
Interest payment then would be £40,000 per year, plus capital repayment.
Younger home owners, who have only known post 2008 interest rates, might be in for quite a shock one day.
That is exactly why interest rates are being kept artaficilly low IMO.I was talking to my son, who is able to obtain a £400,000 mortgage.
The annual interest payment would be about £8,000, plus capital repayment.
Some of us remember mortgage rates around 15%, but not wanting to take an extreme, I asked him if the repayments would be affordable with interest rates at 10%.
Interest payment then would be £40,000 per year, plus capital repayment.
Younger home owners, who have only known post 2008 interest rates, might be in for quite a shock one day.
Edited by Jon39 on Monday 16th October 22:19
red_slr said:
I think 5% is the very most it will reach and that might take 10-20 years from now.
Possibly, but my experience of finance has taught me never to predict anything.Do you think a government wanting more debt, might trigger a rate rise in borrowing international money ?
red_slr said:
Also not sure your maths works out. I would have thought the interest would be closer to £25k a year at 10%?
You have me wondering now, but I think 10% of £400,000 = £40,000.
Is that right ?
Edited by Jon39 on Tuesday 17th October 11:13
So in first year the repayments would be £43k but balance would only reduce to £396k.
However the monthly would remain level at 3600 so its front loaded so you are right in what you are saying but it does not apply for the term and the montly of 3600 would include capital repayment of 400k over 25 years. IYSWIM. So your £40k figure is right (ish) but the capital is included in that.
In the final year it would be the reverse so £43k paid on the account but roughly £39k of that is capital repayment.
I am crap at maths.... so not an expert!
However the monthly would remain level at 3600 so its front loaded so you are right in what you are saying but it does not apply for the term and the montly of 3600 would include capital repayment of 400k over 25 years. IYSWIM. So your £40k figure is right (ish) but the capital is included in that.
In the final year it would be the reverse so £43k paid on the account but roughly £39k of that is capital repayment.
I am crap at maths.... so not an expert!
red_slr said:
So in first year the repayments would be £43k but balance would only reduce to £396k.
However the monthly would remain level at 3600 so its front loaded so you are right in what you are saying but it does not apply for the term and the montly of 3600 would include capital repayment of 400k over 25 years. IYSWIM. So your £40k figure is right (ish) but the capital is included in that.
In the final year it would be the reverse so £43k paid on the account but roughly £39k of that is capital repayment.
I am crap at maths.... so not an expert!
( While you were writing Simon, I did an edit to comment on your other point. )However the monthly would remain level at 3600 so its front loaded so you are right in what you are saying but it does not apply for the term and the montly of 3600 would include capital repayment of 400k over 25 years. IYSWIM. So your £40k figure is right (ish) but the capital is included in that.
In the final year it would be the reverse so £43k paid on the account but roughly £39k of that is capital repayment.
I am crap at maths.... so not an expert!
Yes you are quite right. I did simplify, by only dealing with the increase in payments (of the interest part).
My conversation was to make my son think very seriously, before taking the mortgage. If the scenario were to happen, such an enormous incease in servicing cost, would probably mean repossession long before enjoying your reference to the final year of the mortgage.
The 'last in' mortgage borrowers, would of course be hurt more than others, some of whom are near the end of the contract.
Edited by Jon39 on Tuesday 17th October 11:42
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