Negative Equity

Dithering_Dad

ukcarper wrote: »

If he uses the interest to subsidise mortgage he will have 300 X 12 X 25 + 10k= 100k at the end of 25 years lets be generous and say he can get 4% net that would be £4000 or £333 per month. 25 years ago £100k would have bought you a very nice house my house was £60k 24 years ago and it would cost me in excess of £1000 per month to rent now 3x the interest on 100k.

4%, generous? I remember A&L had a 10% ISA about a year or so ago. How quickly they forget in these times of deflation.

ukcarper

Dithering_Dad wrote: »

4%, generous? I remember A&L had a 10% ISA about a year or so ago. How quickly they forget in these times of deflation.

I have an old ISA with A&L which is now at 1.1% they do better ISAs but they won't let you transfer in. I wish they had reduced their Standard Rate Mortgage by as much.

Thrugelmir

Dithering_Dad wrote: »

4%, generous? I remember A&L had a 10% ISA about a year or so ago. How quickly they forget in these times of deflation.

Wasn't that for a regular monthly savings plan? So the actual interest if you had deposited it at the beginning of the tax year as a lump sum was 5%. Smoke and mirrors.......

Dithering_Dad

Thrugelmir wrote: »

Wasn't that for a regular monthly savings plan? So the actual interest if you had deposited it at the beginning of the tax year as a lump sum was 5%. Smoke and mirrors.......

Nah, it was a real rate, but you had to have a current account with A&L to qualify. I didn't bother myself because I was trying to pay down my mortgage and I get a bigger buzz from seeing my debts go down that I do from seeing savings grow, but I know some of the MFW put money in that ISA. I also believe that there was a HBOS offer that was at 8% without strings attached.

Do you remember the days when savings received interest? Those were the days my friend, we thought they'd never end. We'd sing and dance forever and a day, we'd live the life we choose, We'd fight and never lose, For we were young and sure to have our way.
La la la la...

ukcarper

The trouble with most of these offers is that the high rate of interest only last for a year and you can’t transfer existing ISA funds in which means you can only have £3600 paying the higher interest and all your other ISA funds are in low interest accounts.

JayScottGreenspan

ukcarper wrote: »

I have an old ISA with A&L which is now at 1.1% they do better ISAs but they won't let you transfer in. I wish they had reduced their Standard Rate Mortgage by as much.

If you vote with your feet you can probably get a rate of 2.5% elsewhere (accepting transfers-in).

ukcarper

JayScottGreenspan wrote: »

If you vote with your feet you can probably get a rate of 2.5% elsewhere (accepting transfers-in).

Yes I noticed that but I’ve decided to pay some of my mortgage instead, as the endowment is touch and go.