Mortgage fix

pblakeney

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

surrey_commuter

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

pblakeney

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

briantrumpet

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

In 1992 it was finely balanced between endowment and repayment. I made the wrong choice. Not a disaster, but still very annoying.

surrey_commuter

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

ugo.santalucia

I've got 23 months left at a cosy 1.9%, after which it's anyone's guess. If I am diligent with overpayments and house prices are stable, I could be at less than 40% by then. If I was to land on some pot of gold, I could be down to 30%... any lower than that would incur a 5 grand fee, which is not worth it, given the size of the mortgage. Currently, I have some savings for rainy days that I am trying to put somewhere where it's easy to get them at short notice and I could chuck on the mortgage in two years time if rates are too high... can't really find anything over 2% interest that has flexibility and doesn't involve risk... bit of a strange time..

pblakeney

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

TheBigBean

My 0.91% looks pretty rosy. My lender would still like to charge me fees to prepay this massively out of the money (for them) mortgage.

rick_chasey

TheBigBean said:

My 0.91% looks pretty rosy. My lender would still like to charge me fees to prepay this massively out of the money (for them) mortgage.

At money that cheap you should stick it somewhere else before paying it off.

I thought mine was low at 1.9%

surrey_commuter

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

Think about it

If you overpay by £100k you save £1k a year, after 10 years you have saved £7k
If you invest £100k you make £7k a year and after ten years you have £200k

pangolin

surrey_commuter said:

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

Think about it

If you overpay by £100k you save £1k a year, after 10 years you have saved £7k
If you invest £100k you make £7k a year and after ten years you have £200k

https://www.youtube.com/watch?v=KX5vipC0Xms

tailwindhome

kingstongraham said:

tailwindhome said:

What I take from that is that they're quite bad at predictions.

These predictions are in the bin now

5.5% seems to be the current view

TheBigBean

surrey_commuter said:

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

Think about it

If you overpay by £100k you save £1k a year, after 10 years you have saved £7k
If you invest £100k you make £7k a year and after ten years you have £200k

Tax is used to be worth considering prior to Trussonomics

pblakeney

surrey_commuter said:

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

Think about it

If you overpay by £100k you save £1k a year, after 10 years you have saved £7k
If you invest £100k you make £7k a year and after ten years you have £200k

You are using unusual figures to make a point but missing the point that the term is cut by a massive amount of years but whatever.
I've not had time to watch the video so no idea of the conclusion or validity.

surrey_commuter

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

Think about it

If you overpay by £100k you save £1k a year, after 10 years you have saved £7k
If you invest £100k you make £7k a year and after ten years you have £200k

You are using unusual figures to make a point but missing the point that the term is cut by a massive amount of years but whatever.
I've not had time to watch the video so no idea of the conclusion or validity.

To summarise the video, the best financial decision is to keep the mortgage and invest the money.

However that places no value on the pleasure you would get from living debt free which to some degree will reflect your attitude towards risk.

As you paid off the debt and can not comprehend what I am saying I am guessing you are risk averse whereas I am prone to being bounced out of the casino

pangolin

Obviously it's not either or. I overpay a bit (think it's the equivalent of having about a 3.5% mortgage rather than the actual 2.1%) and could do more but invest it instead.

In theory I have a 32 yr term but current overpayment means it's more like 22.

TheBigBean

surrey_commuter said:

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

pblakeney said:

surrey_commuter said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

I would

pblakeney said:

briantrumpet said:

beansnikpoh said:

tailwindhome said:

beansnikpoh said:

tailwindhome said:

So, if you'd a proportion of your mortgage on BOE +0.17 for the life of the mortgage, with 10 years to run, you'd stick with that, yeah?

Depends on the proportion I suppose. If 90%, probably not. If 10%, almost certainly.

Just less than 50%

That's 2.42% now, which is great, but might be 4.17% by Jan 23, and then who knows. Could be back to 3.17% by Jun 23, or 6.17% by this time next year. If there's only 10 years left on the mortgage now though, I suppose more of the repayment is capital over time, and so interest rate is maybe less important. Depends what you can afford I guess. If 6% base rate is affordable, then sit tight, avoid re--mortgage costs, and the rate might not get that high anyway.

This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

Just a reminder that my first fix was self-certified 5 years at 8.5%, and people were impressed how good that was.

My first fix was 6.5%. When it ran out it dropped to 6%. I kept the payments the same.
That decision knocked 7 years off my term. Top tip for anyone at the beginning.

My mortgage payments dropped from £1,200 a month (interest only) to £200 a month, initially I kept my payments at £1,200 then after 2 months wised up

I should have said on a repayment mortgage. Interest only is a separate issue.
A small increase at the beginning of a repayment mortgage makes a huge difference.

I know. I was pointing out that if you can borrow 1% then why overpay when you can invest the money instead and on average get a 7% return

If you are at the beginning of a repayment mortgage then the savings will be more than 7%. That deminishes the further you are into the term.

Think about it

If you overpay by £100k you save £1k a year, after 10 years you have saved £7k
If you invest £100k you make £7k a year and after ten years you have £200k

You are using unusual figures to make a point but missing the point that the term is cut by a massive amount of years but whatever.
I've not had time to watch the video so no idea of the conclusion or validity.

To summarise the video, the best financial decision is to keep the mortgage and invest the money.

However that places no value on the pleasure you would get from living debt free which to some degree will reflect your attitude towards risk.

As you paid off the debt and can not comprehend what I am saying I am guessing you are risk averse whereas I am prone to being bounced out of the casino

I like a bit of liquidity, so given the choice between no money and no cash, I would choose a mortgage and cash.

If he fails to mention tax, then that's not great.

pblakeney

pangolin said:

Obviously it's not either or. I overpay a bit (think it's the equivalent of having about a 3.5% mortgage rather than the actual 2.1%) and could do more but invest it instead.

In theory I have a 32 yr term but current overpayment means it's more like 22.

That's what I did in my real life example. Overpaying by a mere 0.5% knocked a 22 year mortgage down to 15. That's 7 years less payments, stress free, and disposable.

ugo.santalucia

I’ve managed to cut 2 years in three years of overpayments… quite pleased with that

pblakeney

pblakeney said:

pangolin said:

Obviously it's not either or. I overpay a bit (think it's the equivalent of having about a 3.5% mortgage rather than the actual 2.1%) and could do more but invest it instead.

In theory I have a 32 yr term but current overpayment means it's more like 22.

That's what I did in my real life example*. Overpaying by a mere 0.5% knocked a 22 year mortgage down to 15. That's 7 years less payments, stress free, and disposable.

* Also ties in with the video conclusion where he does a hybrid.
FWIW I think all first time buyers should be presented with these options as I think a lot would use the surplus to go on holiday or buy flashier cars. That's based on what my peers did.

davidof

shirley_basso said:

I stupidly just fixed for 2 year fixed back in Feb-22. Hopefully we can get the value up a bit between now and Feb-24 with a long list of small improvements so our LTV comes down.

arn't you risking catching a falling knife there... if interest rates head up as predicted and with all the green "crap" coming down the line house prices are going to drop and your LTV is going the other way

davidof

beansnikpoh said:

I fixed for 10 years two years ago @ 2.2%.

10 year gilts are near double that now

davidof

Did you fix in the end? I see a lot of mortgage brokers have pulled deals in view of the market chaos

shirley_basso

davidof said:

shirley_basso said:

I stupidly just fixed for 2 year fixed back in Feb-22. Hopefully we can get the value up a bit between now and Feb-24 with a long list of small improvements so our LTV comes down.

arn't you risking catching a falling knife there... if interest rates head up as predicted and with all the green "censored " coming down the line house prices are going to drop and your LTV is going the other way

I guess the good thing is we bought in a very good area (famous last words) and have done a fair amount of cosmetic work which would get the value up a bit.

That said - there's a lot of crap coming the other way so I may call my broker and ask what's best - could be worth just swallowing the break costs and getting re-fixed for the next 5 years.

morstar

davidof said:

Did you fix in the end? I see a lot of mortgage brokers have pulled deals in view of the market chaos

If you mean me as OP, no.
Against my better instincts too.
Doubt I will be doing in a hurry now.

pep.fermi

Here in Germany is common to get a fix rate for the whole mortgage duration. Took mine back back in 2018, 20yr fix at 1.91% (colleague of mine got 0.99% fix for 20yr), with some overpayment I shortened and have 12yr left.

In hindsight I regret the overpayment. No way stock market return less than 1.91% a year when averaged over this long. Finances were not as comfy then and I was more risk adverse.

wavefront

surrey_commuter said:

However that places no value on the pleasure you would get from living debt free which to some degree will reflect your attitude towards risk.

Whilst logic points to investing don’t underestimate going mortgage free. I never felt we were stretched with a mortgage but paying it off seemingly removed a lot of stress. Was in my early forties, and with my attitude to risk (openly cautious) it’s the best thing we ever did. The money not going to mortgage is headed to investments, but it’s given us the freedom to move away from the South East which we’d been tied to for ultimate ‘job security’ (to pay the mortgage). Got a better quality of life due to location but with the ability to also be looking at investments even if we won’t make as much. As SC alluded to, it’s not all just numbers

pangolin

Paying off your mortgage in your early forties feels completely alien these days

surrey_commuter

Just dusting this old lady off.

With rates at 4-5% and the new tax thresholds for personal savings I am thinking of going for an offset mortgage and would appreciate feedback on whether I am doing the sums right.

If my outstanding is £140k and have an offset rate of 5% if I have £14k in the acct dose that mean that my effective rate is 4.5%?

Stevo_666

surrey_commuter said:

Just dusting this old lady off.

With rates at 4-5% and the new tax thresholds for personal savings I am thinking of going for an offset mortgage and would appreciate feedback on whether I am doing the sums right.

If my outstanding is £140k and have an offset rate of 5% if I have £14k in the acct dose that mean that my effective rate is 4.5%?

That's the end effect, but I look at more like you're paying 5% on £126k rather than on £140k. I.e. offsetting the principal amounts and paying interest on the net.

I still think for the tactic of paying it off as soon as possible is the best way to go.