Are borrowers really making a conscious effort to pay down debt?

mewbie_2

My MSE tip for this month. Save 6 months money. THEN pay extra towards mortgage.

b0rker

mewbie wrote: »

My MSE tip for this month. Save 6 months money. THEN pay extra towards mortgage.

That is my plan for the next 6 months.

Assuming I don't gamble some of it on paying down the mortgage more and getting a Lifetime Tracker at 2.99% over the BoE base rate with an 80% LTV (£140 upfront and adding £999).

I feel that the winner that we discussed above would do that and come out of it all quids in at the end of 2012.

I will probably fix for 5 years at 5.99 and slug away at the mortgage like some kind of mortgage indebted drone.

Still paying a decent bit less than I would if I rented so it is swings and roundy boots.

Graham_Devon

b0rker wrote: »

It's funny how you look at that.

As a mortgage holder I certainly won't be accusing you (a concerted saver) of taking money from me when the BoE rate goes up and I have to pay more on the SVR I am currently on.

I love the wholly inappropriate nature of the emotive language that the bears on this site use.

No, you will blame the US.

PasturesNew

b0rker wrote: »

We paid £20,000 off of our mortgage earlier this month.

I've not even had that much go through my hands in the whole of the past two years I doubt.

IveSeenTheLight

b0rker wrote: »

That is my plan for the next 6 months.

Assuming I don't gamble some of it on paying down the mortgage more and getting a Lifetime Tracker at 2.99% over the BoE base rate with an 80% LTV (£140 upfront and adding £999).

I feel that the winner that we discussed above would do that and come out of it all quids in at the end of 2012.

I will probably fix for 5 years at 5.99 and slug away at the mortgage like some kind of mortgage indebted drone.

Still paying a decent bit less than I would if I rented so it is swings and roundy boots.

I wouldn't add the arrangement fee.
When you work it out you end up paying months of mortgage payments just to get back to the original borrowed capital.

fc123

mewbie wrote: »

My MSE tip for this month. Save 6 months money. THEN pay extra towards mortgage.

That's our masterplan.....but our plans always seem to go wrong. Something unexpected happens and The Plan has to change quickly.

Pastures is living out my type of life at the mo.

I know what we need to earn, I know what we need to turnover and I know that any one of our income streams could closedown overnight.
I also know that we need to develop new 'income streams' or gain new customers, either direct or wholesale, every day.

At the mo, we have high living exps cos of school stuff and change of locations for work, so means running two households...and it frets me..a lot.

The past few years I knew to the nearest £5 or 10k what we would T/Over in a month. Now, I couldn't tell anyone what we will T/O in, say, Jan 09.

Not a clue.

Cleaver

PasturesNew wrote: »

As a saver who has had interest rates dropped (money taken from me) so that borrowers pay less interest (money given to them that they didn't expect)....

I've never thought of it in this way before. Have to say that I find that approach a bit odd really Pastures.

You've said in the past that you saw your house go up to ten times your wages and decided to sell. This was money 'given to you that you didn't expect' in that it was the actions of others that allowed your house to rise so high in value. The mortgage holders will have benefited the same way: stuff happened in the economy and they benefited.

I'm going to make an observation now Pastures and I think you're super lovely, funny and altogether a jolly good person, so I hope it doesn't come across as rude. You obviously made a big decision in selling your house to live off the income from the money realised by the sale. I remember in a post a few months ago you saying to Mewbs that bascially, you don't really bother to look at interest rates and also weren't inclined to look and learn about other investment methods. At the risk of seeming rude, was it not a slightly strange decision to liquidise your house without any Plan B in terms of what to do with that money to make an income if the base rate was low? If I was in that situation I would be learning everything I could about other investment vehicles to ensure an income in any financial climate, or giving someone knowledgable a small percentage of my money to do that thinking and work for me. We've just come in to some cash after selling our house and, whilst I don't find learning about equities, corporate bonds and funds that exciting, I find that I need to know about this stuff because simply leaving all our money in cash isn't going to get us anywhere, whether that's fair or not. Observations over.

Cleaver

Bored_Poster wrote: »

Yeah I agree you're bloody selfish Pn!

I didn't say PN was selfish in any way, just that I found her perspective on the situation slightly skewed.

Harry_Powell

Yeah, you're right Cleaver, PN is selfish!! :mad:

Pobby

PasturesNew wrote: »

As a saver who has had interest rates dropped (money taken from me) so that borrowers pay less interest (money given to them that they didn't expect).... I'm not sure if I'd be more annoyed if they had settled their debt with it, or if they'd spunked it up the wall buying tat.

In a similar position to my buddy here. Where exactly do you put your cash. Low IRs, I suspect well under real levels of inflation. My equities are doing not so well, i also have gilts. Tbh, I am of an age where I am very risk adverse. Our pensions, mainly private ones are doing , cough, not exactly well.

Looking at rightmove , I could probably buy a couple of flats without a mortgage but that excites me as much as watching property !!!!!!.

I can understand that there is a lot of anger around when folk, who have a few bob can`t see any return right now

Even over 30 years of paying into pensions we ain`t gonna cop a lot. Annuities down, Brown taxing dividends and the stock market acting like it`s a basket case. Frustrating at best.