Mortgage Loan and Total Amount Repayable
Discussion
The total amount payable will be based on 2 years at 1.6% then 28 years at whatever the lender's current standard variable rate is. So it's theoretical; if rates go up it'll be a lot more, but if you can keep remortgaging to 1.6% each time your introductory rate expires, it'll be less.
I suspect you don't have 30yrs' remaining term on your current mortgage so that'll be part of the reason for the cheaper monthlies; beware that extending the term doesn't save you much each month but it does cost a fair bit more in total over the full term.
I suspect you don't have 30yrs' remaining term on your current mortgage so that'll be part of the reason for the cheaper monthlies; beware that extending the term doesn't save you much each month but it does cost a fair bit more in total over the full term.
anonymous said:
[redacted]
Sorry, I thought you were going with Accord because of this link;http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Their SVR is 5.79%..............
That figure also includes the capital that you are repaying on top of the interest for 30 years. Adjust the term to 20 and it drops significantly.
The overall numbers on an offer has little relevance to most as nobody stays with the same deal for the duration, but these are there to give you a rough idea.
Not sure why you'd take it over 30 years as that just plays into the lenders hands and saddles you with debt for ever. Try and overpay slightly to vshorten the term.
The overall numbers on an offer has little relevance to most as nobody stays with the same deal for the duration, but these are there to give you a rough idea.
Not sure why you'd take it over 30 years as that just plays into the lenders hands and saddles you with debt for ever. Try and overpay slightly to vshorten the term.
westberks said:
That figure also includes the capital that you are repaying on top of the interest for 30 years. Adjust the term to 20 and it drops significantly.
The overall numbers on an offer has little relevance to most as nobody stays with the same deal for the duration, but these are there to give you a rough idea.
Not sure why you'd take it over 30 years as that just plays into the lenders hands and saddles you with debt for ever. Try and overpay slightly to shorten the term.
30yrs average of 4% - £205k interestThe overall numbers on an offer has little relevance to most as nobody stays with the same deal for the duration, but these are there to give you a rough idea.
Not sure why you'd take it over 30 years as that just plays into the lenders hands and saddles you with debt for ever. Try and overpay slightly to shorten the term.
Overpay by £125 a month and save 4.5 years and £35k in interest
Overpay by £250 a month and knock off nearly 8yrs and £60k in interest
Overpay by £500 a month and knock off 12yrs and £90k in interest
A friend of mine bought a house at the same time as me (1st houses) I took my mortgage over 25yrs and overpaid, he took 45yrs as to get the payments as cheap as poss but the difference we paid wasn't that much, I'll let you guess who's still in their 1st house and who's in their dream house.
MajorProblem said:
30yrs average of 4% - £205k interest
Overpay by £125 a month and save 4.5 years and £35k in interest
Overpay by £250 a month and knock off nearly 8yrs and £60k in interest
Overpay by £500 a month and knock off 12yrs and £90k in interest
A friend of mine bought a house at the same time as me (1st houses) I took my mortgage over 25yrs and overpaid, he took 45yrs as to get the payments as cheap as poss but the difference we paid wasn't that much, I'll let you guess who's still in their 1st house and who's in their dream house.
I used to have huge mortgages with the smallest repayments possible as I believed I could get much higher returns elsewhere than the rate on the mortgage.Overpay by £125 a month and save 4.5 years and £35k in interest
Overpay by £250 a month and knock off nearly 8yrs and £60k in interest
Overpay by £500 a month and knock off 12yrs and £90k in interest
A friend of mine bought a house at the same time as me (1st houses) I took my mortgage over 25yrs and overpaid, he took 45yrs as to get the payments as cheap as poss but the difference we paid wasn't that much, I'll let you guess who's still in their 1st house and who's in their dream house.
If you try to make your repayments as low as possible and extend the term and just spend the 'extra' money instead of investing it then of course you will be worse off (financially) in the long run.
However, your friend may argue he had more fun spending the money and would rather be in his position than yours.
IMO overpaying a mortgage is over rated.
gregf40 said:
IMO overpaying a mortgage is over rated.
Especially so with rates as low as they are. There's even current accounts (Santander) which give you higher returns than your typical mortgage rate.A few things people should read up on (bearing in mind 30 years is a loooong time):
https://en.wikipedia.org/wiki/Opportunity_cost
https://en.wikipedia.org/wiki/Compound_interest
https://en.wikipedia.org/wiki/Inflation
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