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[ians]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...

If that is a rational, thought through decision (which sounds like it is in your case) its fine.  problem is many people have taken out these loans (110% for gods sake - that's negative equity from day one!),  without thinking what if...  lose job,  get sick,  rates go up a lot + house prices go down etc etc.    I think the banks are culpable too,   but ultimately individuals need to take responsibility for themselves.

[jereboam]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...

If that is a rational, thought through decision (which sounds like it is in your case) its fine.  problem is many people have taken out these loans (110% for gods sake - that's negative equity from day one!),  without thinking what if...  lose job,  get sick,  rates go up a lot + house prices go down etc etc.    I think the banks are culpable too,   but ultimately individuals need to take responsibility for themselves.

Avoid negative equity at all costs!  In 1977, when living in the Netherlands, I bought a house on a 110% endowment mortgage when prices were skyrocketing.  3 months later, virtually overnight, the market changed direction, and 6 months after I bought it, the house was worth a mere 65% of what I paid for it.  It took 15 years for the price to rise sufficiently to be able to sell the house, during which time my career was hampered by not having the flexibility to move anywhere else.

Basically, that's why I'm still skint, still working and driving a 10 year old Omega instead of a new Jaguar.

[Lazydocker]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...

If that is a rational, thought through decision (which sounds like it is in your case) its fine.  problem is many people have taken out these loans (110% for gods sake - that's negative equity from day one!),  without thinking what if...  lose job,  get sick,  rates go up a lot + house prices go down etc etc.    I think the banks are culpable too,   but ultimately individuals need to take responsibility for themselves.

Avoid negative equity at all costs!  In 1977, when living in the Netherlands, I bought a house on a 110% endowment mortgage when prices were skyrocketing.  3 months later, virtually overnight, the market changed direction, and 6 months after I bought it, the house was worth a mere 65% of what I paid for it.  It took 15 years for the price to rise sufficiently to be able to sell the house, during which time my career was hampered by not having the flexibility to move anywhere else.

Basically, that's why I'm still skint, still working and driving a 10 year old Omega instead of a new Jaguar.

I know what you're saying... Luckily with the money we're saving we'll be safe from that danger. We have no intentions of moving, unless we come into serious money, and we can afford the repayments on just one of our incomes!!  

Luckily I'm in a job which is as safe as any job can be and the wife is well known in her profession and is frequently getting job offers out of the blue!

Although we have broken the golden rule and moved unsecured debt onto our mortgage we will be much better off!! Even my IFA agreed that, in our situation, it was a good move!

Still wont be driving around in a new Jag though...

[ians]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...

If that is a rational, thought through decision (which sounds like it is in your case) its fine.  problem is many people have taken out these loans (110% for gods sake - that's negative equity from day one!),  without thinking what if...  lose job,  get sick,  rates go up a lot + house prices go down etc etc.    I think the banks are culpable too,   but ultimately individuals need to take responsibility for themselves.

Avoid negative equity at all costs!  In 1977, when living in the Netherlands, I bought a house on a 110% endowment mortgage when prices were skyrocketing.  3 months later, virtually overnight, the market changed direction, and 6 months after I bought it, the house was worth a mere 65% of what I paid for it.  It took 15 years for the price to rise sufficiently to be able to sell the house, during which time my career was hampered by not having the flexibility to move anywhere else.

Basically, that's why I'm still skint, still working and driving a 10 year old Omega instead of a new Jaguar.

I know what you're saying... Luckily with the money we're saving we'll be safe from that danger. We have no intentions of moving, unless we come into serious money, and we can afford the repayments on just one of our incomes!!  

Luckily I'm in a job which is as safe as any job can be and the wife is well known in her profession and is frequently getting job offers out of the blue!

Although we have broken the golden rule and moved unsecured debt onto our mortgage we will be much better off!! Even my IFA agreed that, in our situation, it was a good move!

Still wont be driving around in a new Jag though...

I'm not sure that you have broken any rules - seems common sense to me to pay the least interest possible?   Obviously depends on individual circumstances.

[Lazydocker]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...

If that is a rational, thought through decision (which sounds like it is in your case) its fine.  problem is many people have taken out these loans (110% for gods sake - that's negative equity from day one!),  without thinking what if...  lose job,  get sick,  rates go up a lot + house prices go down etc etc.    I think the banks are culpable too,   but ultimately individuals need to take responsibility for themselves.

Avoid negative equity at all costs!  In 1977, when living in the Netherlands, I bought a house on a 110% endowment mortgage when prices were skyrocketing.  3 months later, virtually overnight, the market changed direction, and 6 months after I bought it, the house was worth a mere 65% of what I paid for it.  It took 15 years for the price to rise sufficiently to be able to sell the house, during which time my career was hampered by not having the flexibility to move anywhere else.

Basically, that's why I'm still skint, still working and driving a 10 year old Omega instead of a new Jaguar.

I know what you're saying... Luckily with the money we're saving we'll be safe from that danger. We have no intentions of moving, unless we come into serious money, and we can afford the repayments on just one of our incomes!!  

Luckily I'm in a job which is as safe as any job can be and the wife is well known in her profession and is frequently getting job offers out of the blue!

Although we have broken the golden rule and moved unsecured debt onto our mortgage we will be much better off!! Even my IFA agreed that, in our situation, it was a good move!

Still wont be driving around in a new Jag though...

I'm not sure that you have broken any rules - seems common sense to me to pay the least interest possible?   Obviously depends on individual circumstances.

The rule is that with unsecured debt they can't touch your home... And that the repayment time is, in theory, longer! I say in theory because we could only ever afford the minimum payments so would have taken a lifetime to repay!! Now we have a fresh start and can keep it all under control!

Now, where's me credit card... I need a new Plasma screen!! (joking)  

I will be spending out on an LPG kit though, but that is budgeted for and will repay itself in a little over 6 months (maximum) so we'll be saving even more!!!  

[Marks DTM Calib]

The key thing when placing such debt on your mortgage is to try to over pay....so your not carrying the transfered debt for the full term of the mortgage.

[Lazydocker]

The key thing when placing such debt on your mortgage is to try to over pay....so your not carrying the transfered debt for the full term of the mortgage.

Agreed... The new mortgage will penalise us for any overpayment in the first 3 years though. To combat this we'll just be saving the money instead... In an account we can only access with notice!!

[Martin_1962]

Next year I am moving my mortgage and consolidation loan to the lowest interest rate (and slightly longer) term I can find, my loan finishes when I am retired mortgage quite a bit before - so a year on the mortgage and slightly higher payments will cover me

[Vamps]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...

If that is a rational, thought through decision (which sounds like it is in your case) its fine.  problem is many people have taken out these loans (110% for gods sake - that's negative equity from day one!),  without thinking what if...  lose job, get sick,  rates go up a lot + house prices go down etc etc.    I think the banks are culpable too,   but ultimately individuals need to take responsibility for themselves.

This is where it is looking like I have a problem and it is nothing to do with 110% Motgages, even after remorgaging, some time ago, we have 30% collateral allowing for a 10% drop in value.
There are some times when not buying a property and living in a Council house would be an advantage