Printed and PDF Mortgage Guide Discussion Area

SmileyG_2

Bump this up the Mortgages and Endowments board

bazaoyaki

Joining this forum for the first time, I'm rather confused about mortgage overpayment. I have a HSBC fixed rate mortage (5.95%) coming to an end in MArch, which will then switch to bank standard variable rate (currently 3.94%) automatically. It also means that I'll be free to make any amount of overpayment starting from April.
Two questions:
1.Should I make overpayment as much as I can afford after April, given the current climate (low savings rate), or is it better to put it in savings (about 4%) for a period a time and make lump sum payment later?
2. In general, is it better to overpay mortgage when the mortgage is high or low? (not sure if it's a valid question, but I am just thinking whether I should save till the standard variable mortage rate goes up, and then pay a lump sum). Does that make sense?

Thanks!

Davofish

It's not a case of how high or low interest rates are, it's the difference between the savings rate and the rate on your mortgage that is important.

In your example, it is neither here nor there as the two are practically the same, although you may have to pay tax on your savings remember.

If you can get hold of a savings rate which is higher than your mortgage rate then it might be appropriate to put your cash in the bank for a while.

If you have a reasonable amount to invest, consider an offset mortgage which is really tax efficient.

firsttimebuyer3117

Afternoon,

This is my first time to the forum. I've just requested the mortgage guide but noticed now that from feb 2009 it won't be up-to-date. Is there a date scheduled for it's update?

Also - as a first time buyer I'm finding that I'm getting some conflicting advise and wondered if anyone could add some clarity for me. Myself and my partner are thinking of buying and were told most recently from a mortgage advisor that because of the way the mortgage marketing is working that we should actually put in an offer on a property (baring in mind what we could be lent) before we lock down a mortgage deal. Does this sound right?

Secondly because of the way the market is at the moment is there a better type of mortgage that we should be looking at? And as one of us is still in a probationary period at a new job will this affect are chances of getting a mortgage?

Thanks in advance for your help.

claralou

Davofish wrote: »

If you have a reasonable amount to invest, consider an offset mortgage which is really tax efficient.

We're considering an offset mortgage.... Regards your comment above, Davofish, do you have a rule of thumb amount that you would consider 'reasonable amount to invest' that makes an offset mortgage worth looking into?

Thanks

hawkinspete

Is anyone else having problems getting the PDF? I have been trying for the last few days and nothing happens. I am after the first time mortgage PDF. Does anyone already have this, is it of an emailable size ie less than 10Mb.

Many thanks

rodman

cant see the link to download the pdf

beecher

rodman wrote: »

cant see the link to download the pdf

http://www.moneysavingexpert.com/mortgages/mortgage-guide

Teggy100

Hi guys.. my first post so please excuse me if I don't get the forum etiquette quite right.

I wanted some advice.. here is my situation.

I am currently living mortgage-free in a house worth approx. £170000
I have just inherited £60000 from a relative

I have found a house that I really want to buy which is priced at £256000

Obviously there is a 26000 shortfall from being able to be totally mortgage free, but the bigger snag is this:
The property I want to buy is a reposession and as such the bank want a quick contract exchange.. My house is not currently on the market and so selling quickly is impossible (and probably would be even if it were for sale in this market!!!).. so can anyone give me any options for raising the money quickly?

I have been lucky enough to reach 30 and be totally mortgage free so I know nothing about the process. Renting my house seemed like an option but again, takes quite a while and I don't know how mortgage companies view the financing on a rental property.. i'd prefer to raise a mortgage against my existing house rather than the new one.

What are bridging loans?

Sorry to sound dense.. but... well, in matters like this.. I am!!

hanga4banga

Just wondering if anyone has used L & C?

I have and would NEVER use this broker ever again. The service I recieved was terrible. So many unanswered emails, I even had to copy 3 other people at L&C into emails thinking maybe that would work, but no, none of them seemed to give a s**t!

Sat