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[Field Marshal Dr. Opti]

What are you paying?.

Banks tend to like the word 'variable'

I have paid everything from 16.5% in 1990 down to 3%. Currently paying 3.75%, but I can arrange a new and hopefully better deal in October.

I have seen new mortgage offers available as low as 0.89%, but there is usually a hefty sign up fee of around £1500.

[aaronjb]

1.89% fixed for 2 years (one year remaining) on an LTV of ~79%
4.29% fixed for 5 years (four years remaining) on an LTV of ~73% on a BTL basis

I imagine if I could cut 1% off the main mortgage, it would save me much more than the £1500 fee..

[STEMO]

3.89 fixed till August 2021. I can't see any further than that at the moment. These 'cheap' mortgages that are knocking about at this time are not for first time buyers. As Opti says, there is a whopping arrangement fee, and I think the maximum LTV is around 70%.

[Field Marshal Dr. Opti]

1.89% fixed for 2 years (one year remaining) on an LTV of ~79%
4.29% fixed for 5 years (four years remaining) on an LTV of ~73% on a BTL basis

I imagine if I could cut 1% off the main mortgage, it would save me much more than the £1500 fee..

This is the calculation that would need to be made, Aaron. Be aware these low rates are usually only fixed for 2 years. Based on £1500 you would need to save £750 a year.

BOE base rate is a paltry 0.25 % so the banks are shafting us however much they charge.

[Field Marshal Dr. Opti]

3.89 fixed till August 2021. I can't see any further than that at the moment. These 'cheap' mortgages that are knocking about at this time are not for first time buyers. As Opti says, there is a whopping arrangement fee, and I think the maximum LTV is around 70%.

Will you still be alive in 2021?

You are right about the LTV though.

[aaronjb]

This is the calculation that would need to be made, Aaron. Be aware these low rates are usually only fixed for 2 years. Based on £1500 you would need to save £750 a year.

Indeed - I've calculated very hard each time I've changed mortgage Sadly last time was to move house and it cost me a pretty penny to get out of the previous mortgage, stamp duty plus the 3% accelerator etc.

This time I'd be more interested in reducing the mortgage term than saving money per month, though.. so if I can get a lower rate (in ~12 months time) to keep the payments roughly the same with a shorter term, I'll jump at it.

That said, the BOE are making noise about hiking interest rates again, so perhaps in 12 months time I'll be in a cardboard box under an overpass, instead..

[Viral_Jim]

Our deal was 4.89% fixed for 5yrs  based on 90% ltv. Broke it 2yrs early this April in favour of 1.49% at 60% LTV on a 2yr fix. It's fair to say we've done a bit of work on our place  . Despite all the fees, charges etc we'll be "in the money" after about 10.5months.

Like others, when it comes to a mortgage, I do love a good spreadsheet 

[Field Marshal Dr. Opti]

This 'mortgage arrangement fee rip off' is similar to moving debt on your credit card.

It used to be the case you could move all your debt to another card for 12 month with a lower APR, with no additional charges.

Now the bastards want 3%.

[Field Marshal Dr. Opti]

Our deal was 4.89% fixed for 5yrs  based on 90% ltv. Broke it 2yrs early this April in favour of 1.49% at 60% LTV on a 2yr fix. It's fair to say we've done a bit of work on our place  . Despite all the fees, charges etc we'll be "in the money" after about 10.5months.

Like others, when it comes to a mortgage, I do love a good spreadsheet 

What was the penalty, jimmy?

[Andy B]

What are you paying?.

 ....

Nothing    paid it off a few yrs back 

[tunnie]

Currently 3.1% on LTV of 55%, been fixed for 4 years, expires next year.

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

[Field Marshal Dr. Opti]

Currently 3.1% on LTV of 55%, been fixed for 4 years, expires next year.

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

This certainly helps.

You are essentially 'dripping with wealth'

[Field Marshal Dr. Opti]

What are you paying?.

 ....

Nothing    paid it off a few yrs back 

Nobody likes a smartarse, Mr B...eanz.

[tunnie]

I found the rates improved greatly when LTV dropped below 60%, current ambition is to be mortgage free before I'm 50. 

[STEMO]

Because of our advancing years (the old boot is 47), we took out a 15 year mortgage. With overpayments, we will have paid it off in 12, so the 5 year fix will have taken us to nearly halfway through. We are overpaying just enough so as not to incur an early settlement fee.

[Field Marshal Dr. Opti]

Because of our advancing years (the old boot is 47), we took out a 15 year mortgage. With overpayments, we will have paid it off in 12, so the 5 year fix will have taken us to nearly halfway through. We are overpaying just enough so as not to incur an early settlement fee.

I try to do this.

I'm allowed a 10% overpayment each year without penalty.

Some years I manage .....some years I don't.

[aaronjb]

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

32 years left on mine You'll have retired before I finish paying my mortgage, I suspect - and you're considerably younger than me!

[edit] Those of you habitually over-paying 10% a year.. where are you finding £20-30k annually on a repeating basis!? I need to come and raid your sofas...

[Marks DTM Calib]

2.8% fixed until the end of the mortgage with another six years left to pay (well, 5 and a half to be accurate)..........but then I guess there may potentially be Uni fees to fork out after that!

[STEMO]

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

32 years left on mine You'll have retired before I finish paying my mortgage, I suspect - and you're considerably younger than me!

[edit] Those of you habitually over-paying 10% a year.. where are you finding £20-30k annually on a repeating basis!? I need to come and raid your sofas...

I've told you before, you need to move to Barnsley. £8.5K is 10% of ours.

[Field Marshal Dr. Opti]

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

32 years left on mine You'll have retired before I finish paying my mortgage, I suspect - and you're considerably younger than me!

[edit] Those of you habitually over-paying 10% a year.. where are you finding £20-30k annually on a repeating basis!? I need to come and raid your sofas...

I work in a very 'hush hush' capacity for HM Government. Only last week I had to make love to a beautiful 25 year old Russian countess to obtain state secrets entrusted to her by Putin.

I didn't want to do it......I did it for England.

I'll see if there are any vacancies for you, Aaron.

[tunnie]

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

32 years left on mine You'll have retired before I finish paying my mortgage, I suspect - and you're considerably younger than me!

[edit] Those of you habitually over-paying 10% a year.. where are you finding £20-30k annually on a repeating basis!? I need to come and raid your sofas...

32 years!?!? What did you start with?

I took out 25 year term for my first flat in London, fixed at 6.5% for 3 years back in 2010. Then late 2013 took out 5 year fixed at 3.1% for 22 years.

If I drop it down to 15 years and as long as I get around 1.5% rate, which appears doable with my LTV. (Quick calc puts it at 36%) - I'll pay the same but cut a couple of years off.

[STEMO]

2.8% fixed until the end of the mortgage with another six years left to pay (well, 5 and a half to be accurate)..........but then I guess there may potentially be Uni fees to fork out after that!

We are doing the Uni fees right now. His fickin live-in rent is £6000. 

[Viral_Jim]

What was the penalty, jimmy?

2% of the outstanding balance, about £4k in our case, we waited because it was a sliding scale, 5% in yr 1, 4% in yr 2, 3% in yr 3, 2% in yr 4 and 1% in yr 5. Sadly we signed up about 6 months before the interest rate drops filtered through into the residential mortgage market. Annoying but one of those things.

We are due to be finished on our mortgage when I'm 48  . However I think our next house move will take our mortgage debt from £200k ish to over 500  . Not sure I fancy 16yrs of £2700pcm mortgage payments so I think we may extend the term! 

[STEMO]

What was the penalty, jimmy?

2% of the outstanding balance, about £4k in our case, we waited because it was a sliding scale, 5% in yr 1, 4% in yr 2, 3% in yr 3, 2% in yr 4 and 1% in yr 5. Sadly we signed up about 6 months before the interest rate drops filtered through into the residential mortgage market. Annoying but one of those things.

We are due to be finished on our mortgage when I'm 48  . However I think our next house move will take our mortgage debt from £200k ish to over 500  . Not sure I fancy 16yrs of £2700pcm mortgage payments so I think we may extend the term! 

I'm afraid I'd shit myself at the prospect of those repayments, Jimmy, your faith in the jobs market must be much greater than mine.

[Marks DTM Calib]

2.8% fixed until the end of the mortgage with another six years left to pay (well, 5 and a half to be accurate)..........but then I guess there may potentially be Uni fees to fork out after that!

We are doing the Uni fees right now. His fickin live-in rent is £6000. 

The mortgage was always timed to complete about the time Will hits 18....so hopefully we wont notice to much when funding an 18 year olds drink, sex and living habits!

Currently owe about 10% of the house value so plenty to draw on should I need to. 

[tunnie]

What was the penalty, jimmy?

2% of the outstanding balance, about £4k in our case, we waited because it was a sliding scale, 5% in yr 1, 4% in yr 2, 3% in yr 3, 2% in yr 4 and 1% in yr 5. Sadly we signed up about 6 months before the interest rate drops filtered through into the residential mortgage market. Annoying but one of those things.

We are due to be finished on our mortgage when I'm 48  . However I think our next house move will take our mortgage debt from £200k ish to over 500  . Not sure I fancy 16yrs of £2700pcm mortgage payments so I think we may extend the term! 

Soo tempting to do this, I'm currently resisting this.

Otherwise we are looking at some expensive houses 

[Viral_Jim]

I'm afraid I'd shit myself at the prospect of those repayments, Jimmy, your faith in the jobs market must be much greater than mine.

Its a bit dicey in the first couple of years, but SWMBO and I always do a lot of work on our places when we buy. So we have a lot of "sweat equity" in our house and could afford to sell it cheap if the worst were to happen, in that scenario we would lose the value of our efforts but still come out ahead.

TBH I see the next 3-5yrs being very good for us and we need to cash in. SWMBO's work is all in paid EUR & USD and until brexit is negotiated and the processes settled I can't see the GBP holding decent value against either currency. After that, who can say? I think it will depend on how well we "make a go of it" on our own. 

[tunnie]

I'm afraid I'd shit myself at the prospect of those repayments, Jimmy, your faith in the jobs market must be much greater than mine.

Its a bit dicey in the first couple of years, but SWMBO and I always do a lot of work on our places when we buy. So we have a lot of "sweat equity" in our house and could afford to sell it cheap if the worst were to happen, in that scenario we would lose the value of our efforts but still come out ahead.

TBH I see the next 3-5yrs being very good for us and we need to cash in. SWMBO's work is all in paid EUR & USD and until brexit is negotiated and the processes settled I can't see the GBP holding decent value against either currency. After that, who can say? I think it will depend on how well we "make a go of it" on our own. 

That's will be you set for a while I think 

For me MrsT does not work, well she does, full time mummy. So all on me for the mortgage.

[Viral_Jim]

Soo tempting to do this, I'm currently resisting this.

Otherwise we are looking at some expensive houses 

I have been back and forth on mortgage term vs increased pension contributions. It all comes down to interest rate, which you cant predict. I'd wondered if I'd be better off setting money aside such that the 25% tax free lump sum on the pension would settle the amount o/s at my retirement.

Ultimately, the issue thats stopped me doing this is the reduced flexibility compared to having a pot of equit in the house that we could access at any time.

That's will be you set for a while I think 

For me MrsT does not work, well she does, full time mummy. So all on me for the mortgage.

Yup, for us, carla started her business when we were in the €1.35 and $1.55 per pound territory, times for us have never been so good in that respect.

[tunnie]

Soo tempting to do this, I'm currently resisting this.

Otherwise we are looking at some expensive houses 

I have been back and forth on mortgage term vs increased pension contributions. It all comes down to interest rate, which you cant predict. I'd wondered if I'd be better off setting money aside such that the 25% tax free lump sum on the pension would settle the amount o/s at my retirement.

Ultimately, the issue thats stopped me doing this is the reduced flexibility compared to having a pot of equit in the house that we could access at any time.

Yeah this is the problem, I thought 6.5% was high. As I bought middle of credit-crunch on 10% deposit. But mid 1990's and it was 15% I think?

Think I'm on a reasonable rate of 3.1, but can see so many deals on 1.5% - My thoughts are to keep payment similar, but with lower percentage, will allows a shorter term.

That said, if I go back to 25 years, suddenly that means we can get a much bigger house. But that means won't pay it off until I'm 60. 

[Lincs Robert]

Take a look at First Direct. Rates from 1.34%. We remortgaged with them a year ago & got 1.74% fixed for 5 years with no fees. 

[tunnie]

Take a look at First Direct. Rates from 1.34%. We remortgaged with them a year ago & got 1.74% fixed for 5 years with no fees. 

That's bloody good. Although not sure now I'd want 5 years fixed, more like 2 years now. In-case we want to move.

[Viral_Jim]

And if you're anything like me you'll want to be on the beach well before that ripe old age

[tunnie]

And if you're anything like me you'll want to be on the beach well before that ripe old age

Yeah, 10 years of no mortgage sound like a lot of fun.

Who knows I might be able to afford £50/m for a Vectra tax   

But seriously, that's lot of spare dosh for family holidays and generally enjoying life.

[Lincs Robert]

Take a look at First Direct. Rates from 1.34%. We remortgaged with them a year ago & got 1.74% fixed for 5 years with no fees. 

That's bloody good. Although not sure now I'd want 5 years fixed, more like 2 years now. In-case we want to move.

We actually paid the mortgage off completely when we moved from Amersham up here. Then took out a smallish mortgage to get work done on the house a couple of years after we moved in. Very low LTV ratio & will clear it completely in less than 3 years - hopefully.

[Field Marshal Dr. Opti]

And if you're anything like me you'll want to be on the beach well before that ripe old age

Yeah, 10 years of no mortgage sound like a lot of fun.

Who knows I might be able to afford £50/m for a Vectra tax   

But seriously, that's lot of spare dosh for family holidays and generally enjoying life.

£50 a month for a 'common as muck' Vectra is insane.

£50 a month for the lovingly hand built bespoke Signum is a snip.

The cars have nothing in common.

[Field Marshal Dr. Opti]

Take a look at First Direct. Rates from 1.34%. We remortgaged with them a year ago & got 1.74% fixed for 5 years with no fees.

That does look impressive.

[Kevin Wood]

I think I'm on 0.89% above base rate fixed for the life of the loan. Feeling a bit silly for overpaying so much when the rate was higher.

[Lincs Robert]

Take a look at First Direct. Rates from 1.34%. We remortgaged with them a year ago & got 1.74% fixed for 5 years with no fees.

That does look impressive.

Existing customer, the first fixed rate deal with them was coming to end, we were on 3.89%. I think they do loans for non FD customers as well.

[aaronjb]

What was the penalty, jimmy?

2% of the outstanding balance, about £4k in our case, we waited because it was a sliding scale, 5% in yr 1, 4% in yr 2, 3% in yr 3, 2% in yr 4 and 1% in yr 5. Sadly we signed up about 6 months before the interest rate drops filtered through into the residential mortgage market. Annoying but one of those things.

We are due to be finished on our mortgage when I'm 48  . However I think our next house move will take our mortgage debt from £200k ish to over 500  . Not sure I fancy 16yrs of £2700pcm mortgage payments so I think we may extend the term! 

Soo tempting to do this, I'm currently resisting this.

Otherwise we are looking at some expensive houses 

And that's why my term is so long

I took a 25yr mortgage out on my flat for £68000 in 1999, which was the absolute max balls-to-the-wall amount I could afford (and still meant living in Slough)
Then I moved house in 2009 and took out a mortgage on a ~£250,000 house, during the 'slump' (which meant the flat had dropped, too), the only way I could afford the repayments was.. to take the term back to 25yrs
In 2016 I moved to a ~£450,000 house taking very little equity out of the other (keeping it as a rental for now) which meant that .. the only way I could afford the repayments was to take the term back to 25yrs again; except, somehow, my broker managed to make that 35 years rather than the 25 I wanted, and I'm stuck with it for another year..

..Well, I could get out but the penalty is ~£10k so it's not worth doing at this point.


Of course I could have stayed in that 1bed flat and saved myself a lot of money, but I wouldn't want to be living in a 1bed flat at 39.. plus I'd have a hard time fitting in all my crap

[aaronjb]

Also I was young and foolish and thought I'd live forever

Now 40 is rapidly closing in ( ) I'd do things differently, of course; save more, spend less and have the shortest mortgage term I could manage!

[tunnie]

Yeah if I reset my term to 25 years, that does suddenly give us much better options. My neighbours houses are currently on the market one £450k other at offers over £425k, interested to see if it sells for that. As they are both a terrace house, smaller garden than me and only 1 parking space. Compared to mine which is detached, garage, 2 car driveway and bigger garden. I paid £325k for mine few years ago, so done quite well I think. Maybe a good day mine is £500k, not sure how much extra value mine would be, but normally detached does go for a little more. (also assuming my neighbours get their asking)

Problem is the houses we want which tick all our long term requirements and if we want to stay in same area are £700k 

[aaronjb]

Yeah - one up the road from me (6 bed but a horrible layout as it's a 1930s that's been extended on extensions on extensions) was up for £600k and just sold (no idea for what, yet, of course).. and I live in the arse end of nowhereville!

This one: http://www.rightmove.co.uk/property-for-sale/property-47925765.html

[tunnie]

Yeah - one up the road from me (6 bed but a horrible layout as it's a 1930s that's been extended on extensions on extensions) was up for £600k and just sold (no idea for what, yet, of course).. and I live in the arse end of nowhereville!

This one: http://www.rightmove.co.uk/property-for-sale/property-47925765.html

Be on Zoopla soon, unless you know them. I know my chaps quite well, so once they've sold I might buy them a beer and see what they go.

That's nice though, that would be £800k+ around here. I don't mind that layout, it could work for us.

Problem is for us we want a bigger garden, but all modern builds (like ours) have tiny gardens, also squeezing them in, so little land around them. So looking at older houses like that 1930's one, as we would want one that size or bigger ideally.

[Viral_Jim]

That's a really interesting rightmove link. I honestly didnt think any bits of Northampton were as nice as that. Most of it looks like a a bit of a dive 

I may have to put it back on the list of search areas.

[Doctor Gollum]

Also I was young and foolish and thought I'd live forever

Now 40 is rapidly closing in ( ) I'd do things differently, of course; save more, spend less and have the shortest mortgage term I could manage!

Amen to that

[aaronjb]

That's a really interesting rightmove link. I honestly didnt think any bits of Northampton were as nice as that. Most of it looks like a a bit of a dive 

I may have to put it back on the list of search areas.

Some bits are quite nice .. some bits look like they need levelling! The two are not always far apart..

I'm told - Abington is nice, the roads adjacent to the race course also. Spinney Hill is something like the fourth best area (which is where I am), and avoid Semilong as that's where the hookers live

My other half once looked at a house in Semilong that came complete with webcams and beds in every room....

[aaronjb]

Oh I forgot Duston village, which is very nice (expensive but not much more so than Spinney Hill, less than Abington) and parts of Weston Favell village.

[Kevin Wood]

My other half once looked at a house in Semilong that came complete with webcams and beds in every room....

On the other hand, I bet the broadband connection was OK.

[TheBoy]

I'm not on a fixed term deal, just standard tracker, and have been since I last remortgaged around 2003/4 ish

It tracks at 0.7% above base.

[redelitev6]

What are you paying?.

Banks tend to like the word 'variable'

I have paid everything from 16.5% in 1990 down to 3%. Currently paying 3.75%, but I can arrange a new and hopefully better deal in October.

I have seen new mortgage offers available as low as 0.89%, but there is usually a hefty sign up fee of around £1500.

I remember it well , makes me shudder to think what would happen if we ever went that way again -the buy to let market ? young couples maxed out already ? 

[TheBoy]

What are you paying?.

Banks tend to like the word 'variable'

I have paid everything from 16.5% in 1990 down to 3%. Currently paying 3.75%, but I can arrange a new and hopefully better deal in October.

I have seen new mortgage offers available as low as 0.89%, but there is usually a hefty sign up fee of around £1500.

I remember it well , makes me shudder to think what would happen if we ever went that way again -the buy to let market ? young couples maxed out already ?

It does bring down prices - I bought my first house on the back of the 1990 crash, in late 1991, when house prices had crashed, but interest had gone down to around 13%

[Rods2]

Remortgaged in 2005 due to divorce and I'm for the duration on base + 2% which is currently 2.25%.

[Rods2]

Looking forward to new deal as LTV will be sub 40%, aiming to bring it down to 15 years term. Currently 18 years left. .

32 years left on mine You'll have retired before I finish paying my mortgage, I suspect - and you're considerably younger than me!

[edit] Those of you habitually over-paying 10% a year.. where are you finding £20-30k annually on a repeating basis!? I need to come and raid your sofas...

I work in a very 'hush hush' capacity for HM Government. Only last week I had to make love to a beautiful 25 year old Russian countess to obtain state secrets entrusted to her by Putin.

I didn't want to do it......I did it for England.

I'll see if there are any vacancies for you, Aaron.

And then you woke up with the laptop hitting you, where you were talking in your sleep.

[2boxerdogs]

Not a penny, last time I had a mortgage was in 1986 think it was for around £25.000 ,sold the house in Croydon for £89,000 moved to Syderstone in Norfolk bought a house for £49,000 cash sold that a year later for £87,000 & bought our present house in Lincs for £80,000 cash ,only regret is I should have bought 2 instead of spending thousands on cars & holidays but still consider myself lucky to have been mortgage from from 33 years of age.