My Interest rate gamble pays off again!

chewmylegoff

Perhaps the bank asked for evidence of his repayment vehicle.

whatyadoinsucka

Gamble, will have no mortgage by the time these rates go up..
Measured risk more like

PaulF81

These non existent rate rises are doing wonders for my financial well-being. We are paying 370 a month interest on 185k, whilst paying off 1500 per month off the capital. Pretty awesome to be honest.

chewmylegoff

I'm paying £0 a month on my mortgage. You all need to get a better deal.

Thrugelmir

PaulF81 wrote: »

whilst paying off 1500 per month off the capital. Pretty awesome to be honest.

Better off paying less capital and sticking it in an ISA.

wotsthat

PaulF81 wrote: »

These non existent rate rises are doing wonders for my financial well-being. We are paying 370 a month interest on 185k, whilst paying off 1500 per month off the capital. Pretty awesome to be honest.

It sounds like you are paying 2.5% on your mortgage.

Are you and your partner making full use of your ISA allowances?

Nationwide have (or did) an ISA for current account customers paying 4.25%. That's 1.75% of free money.

Can you access overpayments in the future if you need them back?

robmatic

Thrugelmir wrote: »

Better off paying less capital and sticking it in an ISA.

It is psychologically very satisfying to be clearing a mortgage off, even if you could be better off by putting your cash elsewhere.

wotsthat

robmatic wrote: »

It is psychologically very satisfying to be clearing a mortgage off, even if you could be better off by putting your cash elsewhere.

It's worth stepping back though because cash in the bank is better than a feeling of satisfaction.

I've always thought I'd have a party when the mortgage finished (as an avid overpayer) but it's probably not going to be a cause for celebration - more a lost opportunity for future gains. With the low mortgage rates currently available I'm considering borrowing the available equity and offsetting it straightaway to take advantage of future rate gaps.

If the gaps go the other way you just pour the overpayments back into the mortgage.

I miss the fee free credit card promotions. At one time I had in excess of £20k of 0% credit card money in my mortgage account effectively earning 5.45% tax free - happy days.

Percy1983

I still don't see the gamble, I had the choice of a 5 year fix or variable, in short if the BOE rate stays the same for the next 5 years I have missed a chance and paid a little more, but on the flip side I don't need to worry about it for 5 years.

Surely a gamble would be interest only and putting the rest on the horses.

wotsthat

Percy1983 wrote: »

Surely a gamble would be interest only and putting the rest on the horses.

The gamble was interest only but there wasn't anything left to put on the horses.

Ask DervProf - I think the recklessness is still giving him sleepness nights.