Help..cant get remortgage any more ??

temba

HappyMJ wrote: »

Do you mind sharing your money saving tips. To overpay by 10k per year on a salary of 30k which according to the government is not enough to support 6 people so they give you child tax credits on top is amazing....Well done....

Is it anything to do with the "hobbies that provide pocket money"?

Just wondering

"it might be less, i earn 1824 NET pcm, but as i said, we get child benefit and child tax credit and other things that help towards living on, my little hobbies help with pocket money, so we can afford to live..as for the savings..we are going to a meeting at the halifax today with thier financial advisor, from there i will look online armed with the information i get from them as what to do with investment"

loady

i never said i will be paying 10k over, i merely mentioned i have always had the facility to do so, with the greatest will in the world, it has never happened..just for the record...i am not a drug dealer, i am very technically minded and because of that people ask often of my services for themselves, be it modification of thier consoles or setting up home cinema systems, its minimal, but it does help towards the extra expences that maybe the kids partake in....also, maths is a very weak point in my life i am sad to say.

Spiggle

loady wrote: »

folow on rates...are these something recently new ??...over the past 15 years when products have run thier course i have always gone onto the SVR..it is the same with this product as well, looking at the original agreement,the total borrowed was 138.999 and it states that on 01/07/12 the loan reverts to the current SVR which was then 4%..dont think that applies now, im really leaning to convincing my wife to let me pay off 15k of the mortgage, i really do not know enough of investments to have the knowledge to invest and make the money worth more, i am reliant on an all in one package if you like, and these, wel...they are just like people are saying about the high street bank..dont go there, on my current payments 1196, i cant really overpay..paying of a lump sum i can carry on paying 1196 on the new rate i get, i dont want to dig myself a hole, i dont really think i understand the ins and outs, interest rates, comparison rates etc just complicate things more

Hi loady,

Sorry I've been busy.

You will come across the phrase 'follow on rate' on this forum and it simply means the rate you move to when your deal ends which is normally a banks SVR. Sorry for any confusion I caused you.

I have just had another quick look at the natwest webpage and I think the current SVR is still 4% but you should be able to check that quite easily with a phone call to them. Also and importantly you need to make sure you can overpay without penalties once the deal ends.

You are probably tied to the 10% of balance overpayment limit at the moment in which case you can pay off £12k now without any penalty. I don't know how natwest operate and so when you make the overpayment make sure they reduce your monthly payment and NOT the term. Then as you say you will be able to stay with the monthly £1196 and be regularly overpaying.

Once your deal ends in July you can then pay another chunk off the mortgage which will again reduce your monthly payment allowing you to continue overpaying regularly.

Do keep an easy acces savings fund to cover emergencies.

Then in a year's time you could consider looking around for a deal after reducing your capital outstanding considerably and therefore making you far more attractive in affordability terms.

Only two other pieces of advice I'd offer you. Firstly, investing in equities, shares, etc. takes a lot of learning about before you part with any of your money. Secondly, do not be tempted to reduce your monthly mortgage payment after you've paid off a chunk of capital. It will stand you in very good stead in the long run, honestly.

I do hope I've helped you a little.

All the best,
Spigs