We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Only ever had a repayment mortgage
cantthinkofanickname
Posts: 48 Forumite
I've got past the mortgage wagon (being an oldie) - fortunate, yes. But I never had an endowment (and got quietly ripped off) because I always thought that speculating that there would be pots of money in my pocket at the end was a false hope. Be alert, the lenders are only doing themselves a favour!
The only people benefiting from mortgages are the lenders. I made repayments and at the end of their accounting year to pay a bit of cash off the debt. After 10 yrs the debt reduced nicely. I also reduced the term as and when I could as this reduces the interest paid over the term. Best strategy as far as I'm concerned!
Not everyone has it easy, I appreciate that. I had to go through the 15% years and we had very little left to manage on per month.
The only people benefiting from mortgages are the lenders. I made repayments and at the end of their accounting year to pay a bit of cash off the debt. After 10 yrs the debt reduced nicely. I also reduced the term as and when I could as this reduces the interest paid over the term. Best strategy as far as I'm concerned!
Not everyone has it easy, I appreciate that. I had to go through the 15% years and we had very little left to manage on per month.
Thanks for your time.
0
Comments
-
Well done to you
never had an endowment policy myself
Do like offset mortgages as the more I save the less TAX free interest I pay.0 -
Not looking for praise, just passing on a thought. I have to admit not being fully aware of all the deals available now but the type you mention looks pretty complicated and although I looked at some explanations could not really spot the negatives which I am sure exist. What happens if you spend some of the savings used to calculate the mortgage?
Thanks for your time.0 -
Repayment mortgages have been going since mortgages were invented !
so they must work.
As for offset mortgages
1 mine is a repayment mortgage
2 I have mine fixed for 5 years only wish i had fixed for 10 !
3 The offset ( my savings ) means I pay that much less interest each day off my mortgage payment.
4 My offset is gross so I pay the same amount each month BUT as I have offset savings my mortgage owing is coming down much quicker and therefore saving me interest TAX free.
I dont have a ONE ACCOUNT ( poor rate ) just went for the best fixed rate deal with at the time very low fees.
PS I dont work for them but Yorkshire building society are doing a 5 year fix at 5.49% with fees of about £1k so not bad GOOD LUCK0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards