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[Field Marshal Dr. Opti]

I had planned to pay this off last year ( or the year before) but have finally grasped the nettle.

I took out this particular mortgage in 2004, repayable over a 22 year period (2026)

 In common with other loans I have it took the form of a self-certificated mortgage, or liar loan, as they are commonly known. They are so called because the lender doesn't ask too many awkward questions like......"Will you be able to make the necessary repayments" Of course they made sure they covered their arse by insisting on a £30,000 deposit upfront and an administration fee of about £1200. In addition  interest rates were 1.5%- 3% above those you would normally pay at the better known lenders.

Over the years I have tried to source the lowest interest rates possible to keep costs down.......however the best I can find in 2021 is 4.09%, which is way too much with the base rate so low.

So, I've managed to pay off of a 22 year mortgage in 17 years which will have saved me a huge amount of interest.....although depleted any cash reserves I had.

Nice feeling though......although the bastards had the final laugh by adding a further £195 for administration for the final paperwork.





   

[iansoutham]

Well done on killing the mortgage off. Now, remember to put that money each month away and spend it on yourself at a later date.

Been lucky myself in that I have never had to get one. Right time, right place for me.

[Field Marshal Dr. Opti]

Well done on killing the mortgage off. Now, remember to put that money each month away and spend it on yourself at a later date.

Been lucky myself in that I have never had to get one. Right time, right place for me.

Thanks, Ian.

I don't believe self-cert mortgages are so easily available in 2021. This may be a good thing as I personally know people who have been repossessed because they were unable make the payments.

[iansoutham]

I was lucky in being able to buy both my houses at the right time (1st house was after a big payoff from Deutchebank in 2002 when my department was taken over and everyone paid off their contracts) and my other house was a cheap repossession for £40k (bank repo, surprisingly enough) that is now worth over £250k just by sitting on it and replacing the windows for double-glazing 😄 as the area is now undergoing lots of development and infrastructure so now people want to live there (Isle of Sheppey As you go over bridge)

[Field Marshal Dr. Opti]

I was lucky in being able to buy both my houses at the right time (1st house was after a big payoff from Deutchebank in 2002 when my department was taken over and everyone paid off their contracts) and my other house was a cheap repossession for £40k (bank repo, surprisingly enough) that is now worth over £250k just by sitting on it and replacing the windows for double-glazing 😄 as the area is now undergoing lots of development and infrastructure so now people want to live there (Isle of Sheppey As you go over bridge)

Sounds good...

If you buy a house in an  'unfashionable' area that becomes 'fashionable'..... like parts of London, then there is money to be made.

My 'crystal ball' has served me well but it doesn't always get it right, as I have found  to my cost 

[STEMO]

I had planned to pay this off last year ( or the year before) but have finally grasped the nettle.

I took out this particular mortgage in 2004, repayable over a 22 year period (2026)

 In common with other loans I have it took the form of a self-certificated mortgage, or liar loan, as they are commonly known. They are so called because the lender doesn't ask too many awkward questions like......"Will you be able to make the necessary repayments" Of course they made sure they covered their arse by insisting on a £30,000 deposit upfront and an administration fee of about £1200. In addition  interest rates were 1.5%- 3% above those you would normally pay at the better known lenders.

Over the years I have tried to source the lowest interest rates possible to keep costs down.......however the best I can find in 2021 is 4.09%, which is way too much with the base rate so low.

So, I've managed to pay off of a 22 year mortgage in 17 years which will have saved me a huge amount of interest.....although depleted any cash reserves I had.

Nice feeling though......although the bastards had the final laugh by adding a further £195 for administration for the final paperwork.





 

You posted last year that you'd paid a mortgage off.

[Field Marshal Dr. Opti]

I had planned to pay this off last year ( or the year before) but have finally grasped the nettle.

I took out this particular mortgage in 2004, repayable over a 22 year period (2026)

 In common with other loans I have it took the form of a self-certificated mortgage, or liar loan, as they are commonly known. They are so called because the lender doesn't ask too many awkward questions like......"Will you be able to make the necessary repayments" Of course they made sure they covered their arse by insisting on a £30,000 deposit upfront and an administration fee of about £1200. In addition  interest rates were 1.5%- 3% above those you would normally pay at the better known lenders.

Over the years I have tried to source the lowest interest rates possible to keep costs down.......however the best I can find in 2021 is 4.09%, which is way too much with the base rate so low.

So, I've managed to pay off of a 22 year mortgage in 17 years which will have saved me a huge amount of interest.....although depleted any cash reserves I had.

Nice feeling though......although the bastards had the final laugh by adding a further £195 for administration for the final paperwork.





 

You posted last year that you'd paid a mortgage off.

I know.

[STEMO]

We took out a 15 year mortgage on this place, with the first five years fixed. That fix is up in two months and I plan to turn a 15 year mortgage into an 8/9 year one. So another 3/4 years. Of course, the bank are trying to get us to remortgage, at a much lower rate, but the interest I save on early repayment will be whopping compared to a longer/lower rate period.

[Field Marshal Dr. Opti]

We took out a 15 year mortgage on this place, with the first five years fixed. That fix is up in two months and I plan to turn a 15 year mortgage into an 8/9 year one. So another 3/4 years. Of course, the bank are trying to get us to remortgage, at a much lower rate, but the interest I save on early repayment will be whopping compared to a longer/lower rate period.

Yes......In my case 4.09% would be a ridiculous rate of interest when I would be lucky to get 1%at the bank or building society.

I had been keeping interest costs down by overpaying 10% each year without penalty charges. It helped, but if people have any spare cash it 'may' be wise to pay it off in full...( as ML always says)

[Field Marshal Dr. Opti]

We took out a 15 year mortgage on this place, with the first five years fixed. That fix is up in two months and I plan to turn a 15 year mortgage into an 8/9 year one. So another 3/4 years. Of course, the bank are trying to get us to remortgage, at a much lower rate, but the interest I save on early repayment will be whopping compared to a longer/lower rate period.

Big opportunity to source lower rates or pay it off.

What rate are you currently paying?

[Doctor Gollum]

4% looks to be not far off the current going rate.

Still, job well jobbed

[Field Marshal Dr. Opti]

4% looks to be not far off the current going rate.

Still, job well jobbed

4% sound like the SVR. I should think 1-2% should be possible on a deal over 2 or 3 years.

Best to shop around.

[Doctor Gollum]

Agreed that was based on a place I was looking at on Rightmove... Might have been a first time buyer thing, but it looks like they've dropped their 10 year fixed  as well as creeping the rates up

[Field Marshal Dr. Opti]

Agreed that was based on a place I was looking at on Rightmove... Might have been a first time buyer thing, but it looks like they've dropped their 10 year fixed  as well as creeping the rates up
[/quot

Were you looking for a nice 'shagpad'?

By the way......how did your date go?

[STEMO]

We took out a 15 year mortgage on this place, with the first five years fixed. That fix is up in two months and I plan to turn a 15 year mortgage into an 8/9 year one. So another 3/4 years. Of course, the bank are trying to get us to remortgage, at a much lower rate, but the interest I save on early repayment will be whopping compared to a longer/lower rate period.

Big opportunity to source lower rates or pay it off.

What rate are you currently paying?

3.9%, which drops to 3.55% after the fix. It was due to rise but BOE base rate is 0.1% or something.