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RJ - On the track but need some advice.
rjsharpy
Posts: 1 Newbie
Dear all, been using the mortgage calculator for a couple of years and recently came across the forum.
Situation: 1) I bought my first house three years ago for £122.5K. Not having had a mortgage before I went for fixed. The best I could get at the time was 5.93%.
2) Fortunately I had managed to save up and put down £32K deposit leaving me with roughly £90K Mortgage.
3) I have been making over payment within my allowed 10% when I can and have met this every year. Once I have made a lump sum overpayment I have then also changed my term to keep my monthly payment within £600-700/ month. I originally started with a 35 year term and £525/month. Using overpayments and changing the term (at no additional cost) I am now down to 9 years remaining on my term and £60K outstanding. I think I have paid around £15K in interest over the three years.
4) Around 6 months ago I paid £300 for a 'consent to let' from my current mortgage provider. I rent the property out for £480 but I still continue to pay out £700/month.
5) My mortgage expires in a couple of weeks and I have been looking around for a fixed rate, repayment, buy to let mortgage but I cannot seem to better the Standard Variable rate (with no fees) of 4.25% from my current supplier (no fees to continue as buy to let). As such, I'll probably let this carry on for another 6-12 months.
Questions:
1) I have been reading a lot about people putting their debt onto 0% transfer cards. I'd like to do this but need to understand some more about it - Have any of you done this? I can see a few 14-20 months 0% interest cards around at the mo with around a 3% transfer fee. How do you transfer money from your mortgage onto one of these cards? I can’t seem to do it at all!
2) Is it wise to only do this with around 10-20K? If I did this at this time I’d save around £8K in interest.
3) How have people got on balancing the mortgage account and paying off the card at the same time? Or do you keep swapping the card balance around?
Any help would be much appreciated. I think I've done ok to own half my house in three years but I want to have it paid off in another 5 with paying as little interest as possible. Cheers
Situation: 1) I bought my first house three years ago for £122.5K. Not having had a mortgage before I went for fixed. The best I could get at the time was 5.93%.
2) Fortunately I had managed to save up and put down £32K deposit leaving me with roughly £90K Mortgage.
3) I have been making over payment within my allowed 10% when I can and have met this every year. Once I have made a lump sum overpayment I have then also changed my term to keep my monthly payment within £600-700/ month. I originally started with a 35 year term and £525/month. Using overpayments and changing the term (at no additional cost) I am now down to 9 years remaining on my term and £60K outstanding. I think I have paid around £15K in interest over the three years.
4) Around 6 months ago I paid £300 for a 'consent to let' from my current mortgage provider. I rent the property out for £480 but I still continue to pay out £700/month.
5) My mortgage expires in a couple of weeks and I have been looking around for a fixed rate, repayment, buy to let mortgage but I cannot seem to better the Standard Variable rate (with no fees) of 4.25% from my current supplier (no fees to continue as buy to let). As such, I'll probably let this carry on for another 6-12 months.
Questions:
1) I have been reading a lot about people putting their debt onto 0% transfer cards. I'd like to do this but need to understand some more about it - Have any of you done this? I can see a few 14-20 months 0% interest cards around at the mo with around a 3% transfer fee. How do you transfer money from your mortgage onto one of these cards? I can’t seem to do it at all!
2) Is it wise to only do this with around 10-20K? If I did this at this time I’d save around £8K in interest.
3) How have people got on balancing the mortgage account and paying off the card at the same time? Or do you keep swapping the card balance around?
Any help would be much appreciated. I think I've done ok to own half my house in three years but I want to have it paid off in another 5 with paying as little interest as possible. Cheers
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