New mortgage

[stumfelter]

1 hour ago, markm said:

Totally agree with this, don’t save a penny, put it in as overpayments, you can always take it out if needed. 

 

Every spare £ we had, we done this. Off on holiday, £100 in money left, the Mrs paid it off the mortgage instead of blowing it on booze and take away, went to a wedding, £50 left after a night out, the mrs paid it off, get the picture!!!  It used to annoy me but now i’m sat here at 44 having paid of my mortgage at 40.....

We also took out our first mortgage as an endowment, when we changed to repayment we kept that going as it was predicted to do well. We get that cash lump sum (significantly more than in a bank account) in 5 years. 

We both still work full time and can lead the lifestyle we enjoy, you only live once and no pockets in a shroud......

 

+1 we did exactly the same and our endowment pays out in march this year. My advice would be to get it bought as quick as you can. Every penny that you overpay comes directly off the amount borrowed.

[Whatmuff]

32 minutes ago, silver pigeon69 said:

Very true. But how can you blame the youngsters for borrowing up to their eyeballs, when their supposed leaders etc (likes of Corbyn etc) think they can solve the UKs problems by borrowing vast amounts and not even think about how these are going to be repaid.

Also people seem to be missing the fact that if inflation rates go up, not only do mortgage rates etc, but also earnings and wages. My parents struggled when they bought their first house, i remember my mum putting stamps on envelopes and stuffing teddy bears in the evening to raise funds to pay the mortgage. But i also remember when they finally paid it off a few years ago! The very high repayments that they were struggling to meet were.............£3 per week!

Edit: Although wages etc normally take a lot longer to fall in line, than the banks interest rate.

I do agree that it's the Governments who have allowed the borrowing to get out of control and become irresponsible. It all started after Nixon dropped the gold standard back in 1971 and effectively made the USD worthless. 

I also think there is some blame to be put on borrowers, for example only borrow what you can realistically pay back and have a little more understanding of what a mortgage means and it's interest rates. The trouble with it is, people tend to be lazy on the research and either turn to a mortgage broker or straight to a mortgage calculator online and type in "HOW MUCH CAN I BORROW" not realising that some loans will be 5-6 x their annual salary. The small print in the loan will tell them that they are responsible for making repayments if rates go up but they dont listen or understand what's at risk. 

You say wages follow inflation and always increase over time? Well that's another huge problem over the last 10 years, they haven't for alot of people. I'm in the military and I've had a pay freeze for the last 8 years and inflation has been rising, so I've taken a pay cut effectively. My pension has been hacked to nearly nothing and I'm fully expecting another back at some point. Most of the financial benefits have been lost and the housing and food bills are on the rise. 

[Rupert]

I went the other way, i remortgaged to the max for a project, so i borrowed to speculate, its a cheap business loan if you like. I do overpay every month but probably wont be mortgage free for 5/8 years  or i may be bankrupt.

[decoy1979]

To answer the original question is it possible and or worth while transferring and increasing your existing mortgage to the new property? I know that this is something that Nationwide offer.

Ultimately it is going to come down to how risk averse you are, there are plenty of offers on the market. Go with what suits your personal situation best.

[Bigbob]

All my plans where aimed at my old age getting better jobs for more money and time off , paid off my mortgage by the time i was 53 aimed to put the money i would be paying  into  a deposit account  as when im 60 my first pension kicks in and i planned to live a lot more relaxed life , All i do is eat better we go out more  and say i dont fancy cooking at this time  wheres the carry out menu ?. But live is for living 

[Wb123]

The trouble we are having is getting geographical stability. Turning 30 this year and have had at a quick count 12 addresses in the last ten years. Between me and the better half we could put down a fairly comfortable deposit but there is no point buying if we dont know where work will be in twelve months time. 

My pay is being held down fairly aggressively by government policy and had been shrinking versus inflation since before i started, my better half however has seen her pay grow nicely year by year and has a good bit of scope to go up with a few career steps drawing close. 

[old'un]

Hope interest rates do go up, might get some decent return on my savings then.

[JohnfromUK]

7 minutes ago, old'un said:

Hope interest rates do go up, might get some decent return on my savings then.

From a purely personal (and selfish) aspect, I completely agree in the short term!  However, what I would gain short term in interest would be lost many times over in long term 'side effects'.

[NorfolkAYA]

16 hours ago, blackbird said:

They don’t have to go up sky high as you say, your rate 1.2% it’s only got to go up to 2.4% & your payments have doubled what if in time they hit say 5% or 6%. 

 

Thats wrong, 

if my mortgage is £500 pound a month @ 1.2% and the it suddenly jumps to 2.4% I would not then be paying £1000 a month

[team tractor]

9 minutes ago, NorfolkAYA said:

 

Thats wrong, 

if my mortgage is £500 pound a month @ 1.2% and the it suddenly jumps to 2.4% I would not then be paying £1000 a month

It goes up £60 roughly

[Whatmuff]

6 minutes ago, NorfolkAYA said:

 

Thats wrong, 

if my mortgage is £500 pound a month @ 1.2% and the it suddenly jumps to 2.4% I would not then be paying £1000 a month

Correct. The percentage increase would be the mortgage total plus the interest annually. The monthly payment doesn't go up by that amount. A monthly payment on a 200 000 mortgage over 25 year term at 1.2% is £772 and at 2.4% is £887. 

[RockySpears]

1 hour ago, NorfolkAYA said:

f my mortgage is £500 pound a month @ 1.2% and the it suddenly jumps to 2.4% I would not then be paying £1000 a month

Yes you would, if it is an interest only mortgage.

 

RS

[RockySpears]

So, here we are, on a shooting forum.

  In general, we all agree that the economy is in a poor condition (OK, it's shafted), we can all see that interest rates are "Wrong", and yet, the media say what?  Do you see Money Supermarket telling us it is all doomed?  Does Question Time ask simple questions about what happens when interest rates  "normalise"?

NO.  There is no discussion at all.

  So are we wrong?

  Are they ignoring the issue?

  Do they know full well we are doomed but dare not speak of it?

A simple question about everyday money matters and we are doomed.  Take out a mortgage for all you can, because if your mortgage goes belly up, so will so many others, that it will not matter.

Fill yer boots,

RS

[Whatmuff]

10 minutes ago, RockySpears said:

So, here we are, on a shooting forum.

  In general, we all agree that the economy is in a poor condition (OK, it's shafted), we can all see that interest rates are "Wrong", and yet, the media say what?  Do you see Money Supermarket telling us it is all doomed?  Does Question Time ask simple questions about what happens when interest rates  "normalise"?

NO.  There is no discussion at all.

  So are we wrong?

  Are they ignoring the issue?

  Do they know full well we are doomed but dare not speak of it?

A simple question about everyday money matters and we are doomed.  Take out a mortgage for all you can, because if your mortgage goes belly up, so will so many others, that it will not matter.

Fill yer boots,

RS

Good points there, the media is very careful about what is put to the public regarding finances and the state of the economy. They will not advertise the fact that we are nearly in a recession and the economy is failing as this will just cause huge panic and everyone will start to stash cash and not spend thus crashing the economy over night. Look what happened to Northern Rock 10 years back, and Greece and then Cyprus. They need people to keep spending and most of all they need people to keep in debt. When it does crash however just expect them to blame BREXIT and Trump. 

[Lloyd90]

Except we won’t be doomed will we. 

Itll be a bad time for lots of people, lots of other people in different situations will say what a great time it is for them, as they’re getting more for their savings etc. 

Regardless of what happens, the country will carry on. 

[NorfolkAYA]

8 hours ago, RockySpears said:

Yes you would, if it is an interest only mortgage.

 

RS

No, it would have to go up 100% to be paying double 

ATB 

pete

[markm]

8 hours ago, Lloyd90 said:

Except we won’t be doomed will we. 

Itll be a bad time for lots of people, lots of other people in different situations will say what a great time it is for them, as they’re getting more for their savings etc. 

Regardless of what happens, the country will carry on. 

I think you’re right. 

 

The problem is we need a sensible balance. Where people are paying a fair price for their mortgage and savers get a fair return for their investment. unfortunately that probably won’t happen.

As I’m mortgage free and it goes ‘my way’ then I won’t say no to the extra interest. However I have 2 children, one at the age to buy a house in a few years, it means I will have to help him out if I want some peace, which will be WELL worth the investment. lol   

[blackbird]

The biggest thing that p#####s me off after we all work our balls off to pay for our homes in our later years if your unable to care for yourself & you end up in a care home the government will gladly use up all your savings & sell your home down to the last 30k to fund your care, where if you just lived on social ****** all your money against a wall the tax payer would pay for all your care.

[JohnfromUK]

3 minutes ago, blackbird said:

The biggest thing that p#####s me off after we all work our balls off to pay for our homes in our later years if your unable to care for yourself & you end up in a care home the government will gladly use up all your savings & sell your home down to the last 30k to fund your care, where if you just lived on social ****** all your money against a wall the tax payer would pay for all your care.

+1  Not only have we paid for our homes - we have also paid large sums in National Insurance contributions - which is supposed to pay for pensions and the welfare state.  It gives us the worst state pension in the developed world;

and as you point out no care unless you have used the majority of your savings.

[RockySpears]

5 hours ago, NorfolkAYA said:

No, it would have to go up 100% to be paying double 

ATB 

pete

But it did go up 100% !  100% increase  of 1.2 is 2.4.

Your £500, Interest only mort. @ 1.2% means you have a loan of:

1.2/12 = 0.1% per month, so  0.1% =£500

£500 x 1,000 = £500,000 loan

Double the interest rate, double the repayment if you are only paying the interest.

RS

[NorfolkAYA]

4 hours ago, RockySpears said:

But it did go up 100% !  100% increase  of 1.2 is 2.4.

Your £500, Interest only mort. @ 1.2% means you have a loan of:

1.2/12 = 0.1% per month, so  0.1% =£500

£500 x 1,000 = £500,000 loan

Double the interest rate, double the repayment if you are only paying the interest.

RS

No that's absolutely rubbish, if I was paying £500 a month @1.2% and it then went to 2.4% I would be paying £506 not £1000. 

[blackbird]

35 minutes ago, NorfolkAYA said:

No that's absolutely rubbish, if I was paying £500 a month @1.2% and it then went to 2.4% I would be paying £506 not £1000. 

If that is the case if interest rates hits 10% you will still have nothing to worry about ?

 

Edited February 12, 2018 by blackbird

[DanBettin]

As you can probably gather from the discussion in this thread a lot of advice you'll get from those who aren't qualified will be all over the place and up for debate. With something as important as a mortgage I'd recommend you take advice from the likes of PW with a pinch of salt and get some real (up-to date!) advice from a financial advisor. I've seen multiple instances of sound financial advice saving people a LOT of hassle recently.

[100milesaway]

9 hours ago, blackbird said:

The biggest thing that p#####s me off after we all work our balls off to pay for our homes in our later years if your unable to care for yourself & you end up in a care home the government will gladly use up all your savings & sell your home down to the last 30k to fund your care, where if you just lived on social ****** all your money against a wall the tax payer would pay for all your care.

Why can't they take back all the money from the convicts and charge them for their keep whilst in jail. Some of these lags are quite wealthy from their ill gotton gaains. from Auntie.

 

3 minutes ago, DanBettin said:

As you can probably gather from the discussion in this thread a lot of advice you'll get from those who aren't qualified will be all over the place and up for debate. With something as important as a mortgage I'd recommend you take advice from the likes of PW with a pinch of salt and get some real (up-to date!) advice from a financial advisor. I've seen multiple instances of sound financial advice saving people a LOT of hassle recently.

I have never yet met a wealthy financial advisor... from Auntie.

 

[DanBettin]

37 minutes ago, 100milesaway said:

I have never yet met a wealthy financial advisor... from Auntie.

 

That doesn't say much. Some of the world's greatest boxing coaches are terrible boxers. Are you saying you disagree that advice from a financial advisor is better than the advice from those that aren't qualified? 

Edited February 12, 2018 by DanBettin