Re-mortgage now or wait?
Discussion
Caddyshack said:
It is a good idea to think of it like keeping plates spinning - I, personally, would not go too overboard on mortgage overpayments that can be hard to get back if you need them - it is good to spin all the plates a bit with short term savings (deposit account with 3 months net income target), long term savings (stock market ISA perhaps) and mortgage overpayments then long term by trying to max the pension.
You have to plan to live too long, die to soon and become ill or disabled along the way (as our old Sales Director used to say at a big Financial Advisory firm)
It can also be useful to pile in early days to get to <60% LTV to then be able to secure the best rates moving forward (assuming house price appreciation doesn’t do that itself which is unlikely for a while in the current climate). You have to plan to live too long, die to soon and become ill or disabled along the way (as our old Sales Director used to say at a big Financial Advisory firm)
Shnozz said:
Caddyshack said:
It is a good idea to think of it like keeping plates spinning - I, personally, would not go too overboard on mortgage overpayments that can be hard to get back if you need them - it is good to spin all the plates a bit with short term savings (deposit account with 3 months net income target), long term savings (stock market ISA perhaps) and mortgage overpayments then long term by trying to max the pension.
You have to plan to live too long, die to soon and become ill or disabled along the way (as our old Sales Director used to say at a big Financial Advisory firm)
It can also be useful to pile in early days to get to <60% LTV to then be able to secure the best rates moving forward (assuming house price appreciation doesn’t do that itself which is unlikely for a while in the current climate). You have to plan to live too long, die to soon and become ill or disabled along the way (as our old Sales Director used to say at a big Financial Advisory firm)
Its also worth noting that mortgage interest is front loaded, so you get charged the most interest in the early years. Almost no point doing it in the last few years other than to pay the capital off quicker, as most of the interest is already paid.
Unfortunately, most buyers have the least disposable cash in the early years usually when they are paying the most interest, especially as kids coming along etc and that then usually frees up later in life.....
Unfortunately, most buyers have the least disposable cash in the early years usually when they are paying the most interest, especially as kids coming along etc and that then usually frees up later in life.....
Sarnie said:
Unfortunately, most buyers have the least disposable cash in the early years usually when they are paying the most interest, especially as kids coming along etc and that then usually frees up later in life.....
So true. Result of people taking the biggest mortgage they can afford to get the nicest possible place though. Common sense though if you’ve a ‘lifetime’ of work ahead of you to pay for it.What I done was to start making regular overpayments as I got pay rises, chuck it in on top each month, then you hardly notice it. Then when the fixed deal comes to an end you are used to paying more so negotiate lesser years on your term for the higher payment you’ve already demonstrated you can pay & repeat. You’ll absolutely batter your mortgage!!
Edible Roadkill said:
What I done was to start making regular overpayments as I got pay rises, chuck it in on top each month, then you hardly notice it. Then when the fixed deal comes to an end you are used to paying more so negotiate lesser years on your term for the higher payment you’ve already demonstrated you can pay & repeat. You’ll absolutely batter your mortgage!!
You don't have to pay much either to make a significant impact, even £10pm save save you a month or two off the end of the term.....it doesn't have to be PH Well Built Company Director levels of hundreds or thousands of pounds......it all helps!Need advice please.
Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
Seventyseven7 said:
Need advice please.
Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
Speak to a broker.Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
The £150k interest will be over the full 20 years of the mortgage (including the majority of the years on based on an SVR of probably close to 7% currently) not the initial 2 or 5 years that the rate is fixed for. It's assuming that you don't remortgage and spend 15/18 years on the SVR........
Seventyseven7 said:
Need advice please.
Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
This doesn’t sound right. That’s 41% ltv, I don’t understand how you can have so much equity and still have 20 years left. Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
Sarnie said:
wormus said:
This doesn’t sound right. That’s 41% ltv, I don’t understand how you can have so much equity and still have 20 years left.
Big deposit, large property appreciation, long term taken at the outset........to name a few reasons.wormus said:
Sarnie said:
wormus said:
This doesn’t sound right. That’s 41% ltv, I don’t understand how you can have so much equity and still have 20 years left.
Big deposit, large property appreciation, long term taken at the outset........to name a few reasons.wormus said:
Seventyseven7 said:
Need advice please.
Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
This doesn’t sound right. That’s 41% ltv, I don’t understand how you can have so much equity and still have 20 years left. Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
A very expensive extension/redevelopment.
Sarnie said:
Seventyseven7 said:
Need advice please.
Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
Speak to a broker.Our mortgage fixed rate ends in November.
It was fixed at 1.2%, I’m so gutted that it’s ending.
Currently 20 years left, 290k balance, house is worth 700k.
If we fix a rate at 4.4% and keep it at 20 years left, our mortgage goes up around £500 a month, not a problem. The killer is, the amount of interest we pay, goes from around 34k to nearly 150k!
What should we be looking at doing with a new mortgage. We can easily afford repayment, we can also over pay each month (up to 1k)
The main aim is to reduce the amount of interest we pay over the terms.
Should we get a longer term mortgage, say 25 years, with fixed 5 years, so the monthly repayments are cheaper, and then over pay the capital to the maximum amount each month?
Or should we be doing something else
The £150k interest will be over the full 20 years of the mortgage (including the majority of the years on based on an SVR of probably close to 7% currently) not the initial 2 or 5 years that the rate is fixed for. It's assuming that you don't remortgage and spend 15/18 years on the SVR........
have our meeting with the broker booked for tomorrow..
£194k remaining
£375k valuation
currently with natwest on a 1.4% rate which ends in June.
Bit nervous about taking a 5 year deal at the moment, i think i'd rather pay a few points more and evaluate again after a 2 year deal?
What we all thinking?
£194k remaining
£375k valuation
currently with natwest on a 1.4% rate which ends in June.
Bit nervous about taking a 5 year deal at the moment, i think i'd rather pay a few points more and evaluate again after a 2 year deal?
What we all thinking?
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