Pay off mortgage and start having fun!

newgirly

Dh is painting ds2s bedroom today :T painting is normally my department but he offered so I bit his hand off now do I clean the house or start wrapping xmas presents?

newgirly

Sooo tired, it's the second night in a row dd is at an 18th party. Tonight's one is on a party boat that's been hired on the embankment. Luckily her and a few others are getting a mini bus back so she won't have to endure the last train aka the "vomit comet" :rotfl:

Dh has painted half the bedroom, I didn't do much really today. I made a veggie bean chilli in the sc and some mushroom soup from the river cottage veg cookbook for dh. More effort and cleaning needed tomorrow.

greent

newgirly wrote: »

Just spotted your post greent, glad someone is putting the effort in still making gloop, I feel guilty now!

No don't! I haven't made any in any least 18 months before this batch!!!:p:o:D

CathT

How's the decorating going?

Haha at 'vomit comet' :rotfl:

newgirly

Hi cath its two thirds done

Just went and had blood tests as my throat is still a problem, now at home having a sneaky cuppa before I head off to work late. We are so lucky as the health centre is just round the corner a one minute walk and you don't need an appointment.

One of my cats seems to have moved out, he has not been home since Thursday but I have seen him a couple of gardens along, I'm pretty sure he must be being fed by a neighbour otherwise he would be home for food as he is very greedy.

Parents evening after work, plus I need to maybe book the car in as the warning light keeps coming on, my dad had a look yesterday and there was no water so he topped everything up but the light is still coming on occasionally. I wish I had a PA to run my life for me it's too busy :rotfl:

Actually on reflection, I think I need to pay the mortgage off so I can retire asap

newgirly

Brrrr it's freezing here today, I've had to put the heating in for half hour so the kids don't turn blue after their showers!

I've downlaoded a free spending app for the iPad, I'm going to make it one of my challenges for next year to fill in everything I spend. I think it could be the shock I need to have a good frugal year again

newgirly

Today dh has the bank manager coming in to work to discuss getting a mortgage for the unit we rent. Hopefully it will go smoothly but there is a possibility we may need to put our house up as a guarantee :eek: which for obvious reasons we would like to avoid at all costs.

I want to sit in on the chat as I do know a bit about mortgages and to be honest dh doesn't I want to find out if we can overpay without letting them know that we want to, as this apparently could put them off wanting to lend to us , commercial mortgages are more expensive (so I've heard on the Internet, there are no published rates anywhere !) and they prefer you to go for the maximum term, so for me it seems quite important to try and see if we can either tie in to a short deal or over pay.

greent

newgirly wrote: »

Today dh has the bank manager coming in to work to discuss getting a mortgage for the unit we rent. Hopefully it will go smoothly but there is a possibility we may need to put our house up as a guarantee :eek: which for obvious reasons we would like to avoid at all costs.

I want to sit in on the chat as I do know a bit about mortgages and to be honest dh doesn't I want to find out if we can overpay without letting them know that we want to, as this apparently could put them off wanting to lend to us , commercial mortgages are more expensive (so I've heard on the Internet, there are no published rates anywhere !) and they prefer you to go for the maximum term, so for me it seems quite important to try and see if we can either tie in to a short deal or over pay.

I used to work in corporate finance. Not many of my customers could afford to overpay, but occasionally one would do a good size lump sum - but we would often then rework the loan and only sometimes issue a letter of variation to the original loan. Commercial lending tends to work very differently to personal mortgages (unless they've reworked it in the past few years) It really is about affordability and cashflow. Simplistically, a business can survive if it's loss making as long as it has cash- but a profitable business can go under quicker if it hasn't got the cashflow to meet debts as they fall due. That's where many small suppliers were killed by large supermarkets - the terms the supermarkets had (eg: pay 90 days after invoice) were unworkable to businesses who needed the cash in to pay their suppliers (max terms often 30 days) and staff. Sustainable for a short while, but a killer in the end. Factoring the invoices out gives the cashflow but then hits the profits.


Hmm.... off on a tangent there! I'd ask about flexibility of the loan - eg if the business was in the position to pay off a chunk (such as 6 -12 months worth of payments) would that be possible and how would it affect the loan afterwards (new loan, term shortened or payments decreased)


Personal property up behind the loan - our reasoning was often (as well as getting an asset to back up the lending) - if the directors don't have the faith that they can make the loan (ie: their own property wouldn't really be at risk) then why on earth should we risk the money? x

newgirly

Hi greent, thanks for the post it's very interesting. I was surprised in the meeting by some of the things he said, the bank are not keen to take our house as a guarantee against the mortgage as they "prefer not to" and it's more expensive for them due to more fees, which I found surprising.

Long and short of it is:

Business has written off hundreds of thousands in losses since dh took over four years ago, plus an expensive move and the recession so has very bad accounts for the last three years.

Cash flow is good, he is happy with that.

New formulas brought in mean profits need to be three times mortgage payments.

New stress testing on variable rates means probably no option but to fix for a minimum of ten years at a dearer rate.

1% repayment fees for any ops

Possibility we may have to personally loan the company cash towards the deposit to get it over 40% ( he is aware that would be borrowed, but it's still ok)

He is looking at it all and will get back to us next week, we really have no indication of which way it will go although he is keen to help us and impressed by the new avenues we are going down to get work and longer term contracts with the goverment still.

newgirly

On more mse matters

ive been splurging online today, borrowing from my personal spends next month

2x double duvet covers with penguins on (just like th john Lewis ad!) from argos £29.99 each ,then half price £14.99 then buy one get one half price £11.25 then 25% off £8.43 each :T

Then a shop at achica , £10 off your first shop so I bought a reduced xmas wreath and wooden heart including postage for 24p

Finally I'm debating buying a new xmas tree, we have one 7.5 ft really nice one already that's very old but lovely but very bulky at the bottom that gets in the way. Plus a funny bluey green smaller one that I use if we have silver decs that year. Buying trees has always been a hobby :rotfl:

So tescos have 30% off plus double up clubcard vouchers so I could have a 6.5 ft one with lots of glitter on for £20 :xmastree: very tempting but I have been banned from buying trees nowadays, I would have to sneak it in and decorate it whilst dh is at work

Other good news today is my blood tests came back clear.