Is your lender coming after your IO mortgage?

nembot

To be honest NHO, when I first moved into the house I bought it was a dream come true, loved doing the things people do when they buy a house - times changed and I moved out because it was convenient.

To be honest as much as I have a little crack, which at times is poor form to be fair. If you can comfortably afford the mortgage, does it matter one bit, whether prices go up or down?

Good grief man... just enjoy it!

Dirk_Rambo

new_home_owner wrote: »

lol

its called jealousy..................

hows the head? it must be a bit sore after your performance last nite. good lcuk to you all the same

Thrugelmir

new_home_owner wrote: »

lol

its called jealousy..................

The phrase "disappear up ones own backside" springs to mind...... :beer:

michaels

OK - before I moved I had about 200k mortgage and 300k in the bank, afterwards I have a 250k mortgage (extended as property worth more so can still have cheapest mortgage rate LTV with bigger loan) and 250k in the bank (do the maths but this is 75k more expensive property plus moving/building costs of 25k)

Since moving in April obviously the savings balance has increased somewhat and to be honest with notice plus redundancy I would probably be well over the 16k anyway even if I used all the savings to pay the mortgage.

MissMoneypenny wrote: »

In your other thread on the benefits board, you seemed to be saying that your savings was the money you got from extending your mortgage when you moved house.




If you have other savings (besides the money you borrowed ) of over 6k(reductions up to 16k?) then I don't think you would qualify for the council tax benefit, free school meals and free prescriptions benefits you talked about receiving if you lose your job. Not that I'm an expert on that, but it often comes up on the benefits board.

Are you borrowing at a low rate against your house and using this money as savings, to try to pay off your mortgage quicker?

It seems from the replies to your other thread, that another risk to those who do that, is that if the job goes, the borrower has those 'savings' to live off. Using that money to pay off the mortgage, could be seen as deprivation of capital by the DWP.

An insurance policy to cover mortgage payments if the job goes would be safer, but that would cost. From reading the mortgage free wannabee thread, some take huge risks in the hope of achieving their aim quickly.

There are always jobs out there for someone as knowledgeable as you seem, it's just that short period between job gone - job found, where the mortgage needs paying.

michaels

Very good point, luckily there is still a 10% band for savings income introduced during the 10% band scrap-page fiasco so it is not too bad at the moment, however last year I had a lot of cash in a fixed rate instant access paying 6.4% and my mortgage rate dived from 4. something percent to just over 2% - extremely profitable but my wife did end up paying some tax. I do not declare non-taxpayer status and we claim it back via a tax return so at least any tax payable is not a nasty shock.

On a related point, savers rather than moaning about low absolute rates should actually be celebrating as all things being equal for a taxpayer gross rates and inflation at 1% is a lot more beneficial than gross rates and inflation at 10%.

Graham_Devon wrote: »

If you have a largish mortgage, and equal funds in savings accounts, and are saving it in your wife's name, just remember she will be liable for tax if the interest received goes over her allowance.

Any increase in interest rates makes this more possible.

Someone at work got caught out doing this, and had to pay back all the tax he hadn't paid. I only say this because you said largish mortgage and equal funds, which I assume, therefore, you have a large amount of savings.

new_home_owner_3

Thrugelmir wrote: »

The phrase "disappear up ones own backside" springs to mind...... :beer:

yes well go on then:T:beer: