"Simply not solvent!

ZTD

Seaxwyn wrote: »

And now for the mortgage...... I have just posted the following on the mortgages board and again would really appreciate any comments.

Hi there, I would really appreciate some advice and/or views.

We have a mortgage with Abbey, £150,942 outstanding (currently paying interest only) and the fixed rate ends in June.

I've discussed options with Abbey and they have offered a fixed rate of 5.75% for 5 or 7 years. With a £125 set up fee. We could overpay up to 10% of the balance each year without penalty.

Or a flexi/offset type account at 0.59% above the BoE rate - with an arrangement fee of £995.

The woman said the rates are changing tomorrow so she urged me to sign up today. Is this likely to be true or just a hard sell tactic?

First thursday in the month is BoE rate-set day. She's implying they will go up. This isn't necessarily true.

Seaxwyn wrote: »

I'm inclined to go for the fixed rate for 5 years. That would mean no increase for the period while we are also paying a large loan, after which I hope we can pay the mortgage faster.

I haven't shopped around, but am not too confident we'd even get accepted by another lender as we are both self-employed, my husband is 58, and have a lot of other debt - although our credit records are good with no missed payments etc.

Please could someone advise whether the Abbey deal looks worth accepting or whether I should wait and/or shop around.

If you don't think you'll get another loan (because of your age), why are you putting yourself in the position of needing another loan in 5 years time, when you will be 5 years older?

Either that or go onto the "sender's standard rate". Which for Abbey is 2.09% above base rate. Will you have paid off your mortgage in 5 years?

The alternative is 0.09% dearer than your fixed deal. Or 1.5% cheaper after 5 years.

A single cut of 0.25% by the BoE will make your fixed rate more expensive throughout its life.

Is the £995 putting you off?

Seaxwyn

Aargh ZTD I was feeling so pleased with myself!

I like the security of knowing it won't go up for five years. And I do expect to be in a better position in 5 years as two loans will have ended then, my credit cards will be gone, and two of my children may even have moved out, making downsizing an option.

Am I being stupid here though? I need to think more.

bountiful

"

worked out that based on last year's expenditure, OH and I need to bring in £114 every single day just to meet outgoings - or £230/day based on working 5 days/week, 46 days a year. That was a sobering realisation. And we all know that living costs are rising"

My goodness! Just hopped over to your thread to see how things were going for you - your guys are in a different league! I don't even understand the question about the mortgage/loan stuff.
I really feel for you about the heart-sinking feeling re putting yourself out there for more work etc.
You have been so encouraging to me, hope my post will offer you some support.

ZTD

Seaxwyn wrote: »

Aargh ZTD I was feeling so pleased with myself!

I like the security of knowing it won't go up for five years. And I do expect to be in a better position in 5 years as two loans will have ended then, my credit cards will be gone, and two of my children may even have moved out, making downsizing an option.

Am I being stupid here though? I need to think more.

A spreadsheet is your friend. It also depends on how much you can pay per year.

Seaxwyn

My gut feeling is the fixed rate is right for us. I feel good knowing that it can't go up.

Thanks for the lovely message Bountiful. Our outgoings are really horrendous but OH and I are lucky that we can earn quite a good day rate, when we work that is.

I got offered two days work today - just one-off things but comforting to know the world of work hasn't completely abandoned me.

OH has picked up a stack of dissertations to mark. They're paying him two days for the marking, but I'm sure they will occupy him for the entire Easter holidays. He was marking essays over Christmas and made real heavy weather of it.

I feel better for the haircut. It was long overdue.

taxi73

If it feels right for you then it is.Good news on the work coming in also.It's nice to getr a haircut that always makes us feel better.

hypno06

Hi Seaxwyn, seems like things are going well for you........how I wish I could get a 0% card to balance transfer to, but I was rejected for the goldfish one not long ago, so no chance of anything else for me!

Seaxwyn

Hi Hypno! Thanks for looking in on your hol. Glad you're having fun and I do sympathise with you going skiing with non-DFW friends. I was the same, having soup at every opportunity while everyone else had steak frites.

Things are going well here in every way but work. And I've let another day go by without doing my CV....

Once you start your new job you can surely get a 0% card, you'll have a decent salary to fill in the box on the form.

hypno06

I hope so, I will be giving it another go in the summer, but have really almost given up hope of getting anything decent. Still, these things are just adding to my daily challenge!!!

chevalier

Hi Seax
Well we both know that procrastination is NOT our friend! I know that you can do this if you put your mind to it. Even if you send you cv out to only 1 company a day for the next couple of weeks, I think you will be pleasantly surprised by the uptake you will get. I have been trying hard to motivate myself too. Hence us picking dates for the house to be packed etc. We've paid the deposit now so no going back really. GULP.

And we have put an add in the local paper to rent our house out. So it is all go. I just have to really push on with selling as much ebay stuff as possible. Otherwise a charity shop is going to be very happy come the end of May. Double GULP!

Right off to do some listing!
chev