Bank of england maintains bank rate at 0.5 pct

lisyloo

The plan is going well.

Well done RenovationMan.
Good for you.

You must realise of course that some people will be jealous of your success, but I'm sure you've worked that out by now.

I did something similar, bought a lovely house and now overpaying big time.
I'm hoping to be mortgage free in 16 months and be totally free from debt which will hopefully leave me free from worry about liabilities and give me and my husband a lot more choice about our future career choices/lifestyles.
It's very sad if others cannot be pleased for you, but that says more about them and their satisfaction with their own lives doesn't it?

I don't know if you're clever, lucky or both, but whatever - congratualtions.

pwllbwdr

RenovationMan wrote: »

Your misunderstanding. They are overpayments.

Dictionary definitions aside, I'm still not sure what you are saying. Are you on interest only (with the exception of your "over"payments)?

ILW

whatyadoinsucka wrote: »

you must have been taught a different economics/finance to me..

Inflation means the cost of money loses value so a mortgage today of £100k is worth far less in the future due to inflation..

same as a £10 yesterday may buy you 2 cinema tickets and a popcorn on orange wednesday tomorrow you may only get one ticket and popcorn for a £10

So on that basis, Zimbabwe syle hyperinflation would be good for the economy?

lisyloo

Unless I'm misunderstanding though, your "overpayments" are actually your only capital repayments. Personally I'd simply call them "payments".

I've paid off £235K from my mortgage in 8 years.
You have my permission to call it what you like. £235K is £235K.
You can call it "fred" or "bob" if you like it's still £235K.
Is that a deal??

lisyloo

He's trying to minimise your acheivements by saying that if you're on I/O then part of your payment would be a normal capital repayment anyway.
People normally do this out of jealousy when they aren't doing as well as you as it makes them feel better.
Who cares what name you give it?
If your beating a normal repyament schedule then you're doing well and increasing your overall wealth.
No doubt you are also adding value with your time by doing your rennovations.

pwllbwdr

We're heading distinctly OT, which is probably not a good idea.

What I was asking was whether your annual overpayments are (at present) the only means of paying off your mortgage.

pwllbwdr

lisyloo wrote: »

He's trying to minimise your acheivements by saying that if you're on I/O then part of your payment would be a normal capital repayment anyway.
People normally do this out of jealousy when they aren't doing as well as you as it makes them feel better.
Who cares what name you give it?
If your beating a normal repyament schedule then you're doing well and increasing your overall wealth.
No doubt you are also adding value with your time by doing your rennovations.

Quite apart from your spurious accusations of my intent, the important part is "beating a normal repyament schedule". But we're OT.

Turnbull2000

It seems to me that these persistant ultra-low rates are becoming entrenched into the economy, with most mortgage holders now being dependant on rates staying as they are to maintain disposable income in light of high inflation - inflation that's higher than most other nations due to ultra-low rates. A virtuous circle if I ever saw one.

whatyadoinsucka

ILW wrote: »

So on that basis, Zimbabwe syle hyperinflation would be good for the economy?

:mad:

well if you had a debt of 100 rand and then hyperinflation of a 100% per day , may reduce your debt. yes, but i think your failing to see the economic sense of my argument..
got to look at everything ST, MT, LT

lots of people on these boards only have one viewpoint so are likely stupid, you got to see both sides of the coin (thats what education teaches you).

abaxas

RenovationMan wrote: »

At present I have opted to make annual payments as a means to repay my mortgage. I could have made monthly repayments but prefer to put the whole amount onto the mortgage and so feel the benefit of a reduced mortgage for the whole term of the year.

The question is..

Are the overpayments doing anything other than catalysing losses in the property?

Ie it's harder to get your money out later.