Bank of england maintains bank rate at 0.5 pct

Sibley

No surprise then

I bet you are well knotted up about this. You would have loved to see homeowners kicked up the goolies.

Well my old son. It's yet another month of saving a few hundred quid. Luvley jubley.

To all those experts who told me rates would go up or rather Have to go up..........:rotfl:

As usual. Sibley knows best.

Love it................


Haha. I just looked on HPC. They are smashed on the rocks. They can't even comment on the rate staying the same. It would have been a 100 page thread if rates had risen.

abaxas

RenovationMan wrote: »

How am I 'losing money' on my property?

My mortgage was fixed the day I bought my house, regardless of whether 'notional' house prices go up or down, the debt stays the same. If I sell the house with a larger mortgage then the money I receive from the sale will be smaller than if I sold the house with a smaller mortgage.

The important measure is therefore how much is costs to service the debt. At the moment it isnt costing very much due to low rates and as my [STRIKE]over[/STRIKE]payments take place, the cost of the debt goes down still further.

I cant comment on the valuation or a potential sale price of your property.

What I mean is my overpaying your are converting your potential loss into an actual one. That is not to say that loss will not be converted into a future profit, but that is a timing issue. Also remember by overpaying you are losing out on gearing advantage over time.

Maybe you could post some figures and we could work out if your overpayments are actually costing you money or making it for you. Remember that you can make money from not using it as well as investment.

Graham_Devon

Pound has fallen nearly 1% against the dollar.

Funnily enough, falls started at 12pm. Not liked by the markets.

abaxas

RenovationMan wrote: »

Right, I understand. The loss you are discussing is the difference between the interest I am saving on my mortgage interest versus the interest I am losing on my savings.

I believe it was the same argument that was used to sell endowments?

No,

What I'm saying is there is a difference between an actual and virtual loss (maybe there is a better word there).

By overpaying your are potentially converting a loss that exists only on paper into one that exists in terms of actual money.

People confuse equity with money, it isnt the same thing. Same with interest payments and 'lost interest'.

It's all about timing.

ultrawomble

Just wondering whether the correction when it comes will be far less gentle than anticipated ?

lisyloo

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

Pray tell why it is important.

I'd like to know as I'm not beating a normal repayment schedule.
I'm investing for a better return instead, so I'd like to know why it's important to beat this schedule.

IveSeenTheLight

pwllbwdr wrote: »

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

Considering his £30,995 overpayment in less than a year is significantly more than he would have paid on a standard repayment mortgage, it has to be overpayments.

There's nothing wrong in being interest only if your capital is earning a better rate elsewhere.