Memorygirls - The Matrix Reloaded

greenbee

Bitsy_Beans wrote: »

Yep know that feeling. When me and Mr Bitsy bought our first home we didn't earn lots of went for endowment type mortgage (only with a PEP rather than an endowment). PEP underperformed massively so when we moved we switched to a repayment as we were earning better. I get my little statement in January and I love the fact that the figure is reducing year on year.

Hmmmmm have NEVER considered overpaying it (not sure we can as it's fixed but still).......I wonder if I could convince H of the benefits :cool:

Check the small print - my fix allowed overpayment of up to £500 per month without penalty (you have to tell them that you want it to reduce the term, not reduce your payment ) and once it ended and went on to variable rate I was allowed to overpay as much as I liked - so as my savings account was paying so little I moved the money from there to my mortgage recently. If I don't decide to do the bathroom soon, my bonus may well go the same way...

Memory_Girl

tellmeitsfriday wrote: »

Even £10 extra a month can reduce a £100k mortgage by 18 months.

OMG!!!! Just transferred £10:D

MG

ETA spends yesterday were 0.69 on a bottle of tomato ketchup for DS2 (He does love a dippy chip LOL)

Karmacat

Oh my word. I'm shocked at your OH's comment, Claire, but there was somebody on here looking at what might be going on deeper down - those are some good points.

Overpaying mortgages - absolutely! I'm all for it It took me years, sadly, to realise it was even possible, but then I started doing it properly, then when I moved last year, I paid it off in full - it was interest only, but I took it out so long ago that there was no idea that you could do that without having a repayment vehicle the repayment vehicle is still going, its a bleeping with profits endowmenet policy, but its falling due next September - it will go to help pay off my French mortgage now, so a year or so after that, I'll be debt free in France too, and the rent will finally cover the outgoings and leave a surplus. As long as the rent is vaguely similar to what I get on the leaseback deal, anyway...

tellmeitsfriday

Memory_Girl wrote: »

OMG!!!! Just transferred £10:D

MG

ETA spends yesterday were 0.69 on a bottle of tomato ketchup for DS2 (He does love a dippy chip LOL)

When I took out my mortgage, I was stupid, and paid someone to arrange it for me....

However, he does send me pretty little charts every now and then to show the effect of the over payments.

I will see if I can find the spreadsheet in my emails so you can have a look and do some clever forecasting too...

What I want now is a 10 year fixed rate which allows over payments. I think I can get my 15 yr goal down even more. Yorkshire BS do one, but only on 75% LTV, and I'm not that low, due to housing market "crash"(relevelling).

tellmeitsfriday

http://www.learnmoney.co.uk/mortgages/repayment.html

Download the excel overpayment calculator (at the bottom) and have a play

maryb

we moved to a totally flexible mortgage when it still had 10 years to run. It allowed you to make unlimited overpayments and the minimum payment each month was interest only. It wasn't the sort that operated like a giant overdraft where there was no distinction between your current account and the mortgage(the old Virgin One account springs to mind - not sure if that is still available) .

The chap at NatWest told me that the majority of those flexible mortgages were paid off in an average of 2 years. Yeah, Right, I thought must be city bankers using their bonuses. But you know what - we cleared ours in 4 years and we didn't have huge amounts of savings to set off against it. I was amazed at the power of compound interest in reverse!! It just got so addictive paying enough extra to get it down to the next round number. Used properly, flexible mortgages are a powerful tool. Used like overdrafts they are a deathly trap - I think the majority of that type were always maxed out

Bitsy_Beans

Ours was a fixed term for about 7 years so we've been paying 5.9% the whole time the interest rates have been so low Still I guess it's the price to pay knowing the amount won't change month to month. Actually I wonder if it's due to end this year, if we then switch to a variable but continue to pay our current monthly price we'd be overpaying and not even realise it

I confess I hate all this sort of stuff, most of it goes over my head And I did Economics at A Level and worked as a legal cashier so you'd think I'd be a bit more financially savvy

ETA - Fixed term ends June 2012 hrumph thought it was this year. Still H has agreed to overpay mortgage by £50 each month and stash as much aside each month to top this figure up. Small print says I can make overpayments I think below the value of £500 LOL wish I had that much extra floating around each month Get me getting all excited

clairewop

Good Morning

I will tell you why he says I am being taken advantage of on the other side

Well I have a birthday cake in the oven, will take a picture of my attempt later when It is finished, it's for the little boy next door but 1 he will be 4.

Just need to text mate to see what time she is picking me up. Then this afternoon it is decorate the cake. If it turns out ok. Going to make a train out of icing

Right off over the other side.

tellmeitsfriday

Bitsy_Beans wrote: »

Ours was a fixed term for about 7 years so we've been paying 5.9% the whole time the interest rates have been so low Still I guess it's the price to pay knowing the amount won't change month to month. Actually I wonder if it's due to end this year, if we then switch to a variable but continue to pay our current monthly price we'd be overpaying and not even realise it

I confess I hate all this sort of stuff, most of it goes over my head And I did Economics at A Level and worked as a legal cashier so you'd think I'd be a bit more financially savvy

Hehe, I was the same - I had a 5 yr fixed rate (@ 5.79%) which ended in January. Northern Rocks SVR is 4.79% so even that is not great! It is totally flexible and I can make whatever OPs I want to though.

I am starting to think about a new fix at the moment though - i just want to get my balance to 85% LTV - I think I have about £1000 to go.... the end of the summer maybe. Let's hope interest rates hold off, because the European Central Bank increased their rates this month....

Firewalker

Wow - this is all very interesting. Thinking cap on and will get MrFW to have a look.

Firewalker