So annoyed at myself for not making overpayments :-(

dktreesea

rainbowcloudy wrote: »

I may look into hsbc. I did ask barclays if my new fixed would be portable and they said yes. I also like the idea of staying with them aswell only because i wouldnt pay any of the fees u get with remortgaging like vaĺuation fees etc.

When i move i will probably need to bortow an extra £50000 which im assuming wont be on the 2.99% as this will technically be the 2nd part of my mortgage so will be on whatever rate they offer me at the time. I think thats right anyway.
Its all so involved i even confuse myself sometimes, i know what i mean in my head but i cant always explain it properly.
Thanks for all the info and help.

How soon are you thinking of moving? If quite soon, maybe it would be better to repay this mortgage and get the new rate for the whole of the amount you are wanting to borrow when you find the new house?

rainbowcloudy

Well house is sold but can't find anywhere to move to at the mo so could be 2 months, could be 5 or could be longer! If id have made OP earlier I would of had enough equity to buy in the price range I ideally wanted

I was thinking about waiting like you said but I'm worried the rate they've offered me will disappear as I don't know if they will be going up soon. I suppose if I call them they won't tell me how long that particular offer is available for?
I'm allowed to pay off another 10% OP at the end of April but I don't think its worth the money sitting in my savings for that long when I can switch now to a better rate and start saving on interest now?
I don't know really. The guy on the phone said the extra money I want to borrow for moving would not be on the same fixed rate but a different one. Is that normal? He said my mortgage would be in 2 parts.
I guess it all depends on if or how much the rates change in the next 6 months or so. I'm hoping I could still get a reasonable fixed rate deal. I'm confused about LTV though when mortgage is in 2 parts. Obviously the better ltv the better deal but if I bought the property for £200000, already have £50,000 on part 1 on fixed rate, want to borrow another £50,000 for part 2. Would they offer me a 50% LTV deal ( £100,000 equity, £100,000 borrowed) for the new £50,000 or a 33% ish LTV deal based on not taking into account part 1?
I may of worded this all wrong its just all very confusing. Still can't stop thinking about how much equity I would of had overpaying, so annoyed at myself.

Fraise

It is pointless kicking yourself over a financial choice you made. Nearly everyone, including wealthy businessmen have made choices they've later regretted: that's because none of us, however clever, have a crystal ball. Of course, with MSE it can help you make better informed choices, but even then there's no guarantees in life.

It's also a waste of energy fretting over. 'What could have been'. That just makes you more frustrated. What you should be thinking is ,what do I have ?"

You have your own home, which is many peoples dream. Some people can't even raise the deposit for a mortgage, and whilst you may be paying somewhat more for yours than some, you still have your own home, or at least, part of it until you have bought it outright.

Also remember that whilst you may have paid more in interest, your property (depending where you live) should have risen in value . So, at the end of it all, even if you paid slightly more than you could have, the cost will see minimal in comparison to what your home will be worth 10 years from now.

You also have the option of overpaying chunks of your mortgage off with that 30k you have saved.....or you can use it enrich your life in some way. It's a lot of money, and you can do things with that money that many people can only dream of. Whether it's privately educating your children in a favourite subject or sport, or taking them abroad to experience different cultures, or just buying beautiful things or experiences that enhance your lives and leave you with memories more precious than gold.

gjchester

rainbowcloudy wrote: »

Just a quick question. Say if you take out a mortgage of 50000 from 1st april and you are allowed OP of up to 10% a year. Could i make an OP of the whole 10% (so £5000) on the 2nd april or soon after. Obviously as i understand it that would be my only allowed OP until the following April but im wondering if there are rules as to the 10% being allowed over the course of the year so pro-rata it or is it the case of it being anytime as long as its April to April?
Hope ive worded that right.

Usually Yes, BUT, As I said before read the terms of the mortgage. There may be other limits.


Our fixed deal charged a fee if you overpayed by more than £499 a month, except in January when there was no fee.


If I paid more than £499 in any month other than January I'd be charged a fee, regardless of the fact I had not exceeded the 10% op limit. In practice we overpaid chunk each month within the £499 then topped up to 10% in Jan.

rainbowcloudy

Fraise wrote: »

It is pointless kicking yourself over a financial choice you made. Nearly everyone, including wealthy businessmen have made choices they've later regretted: that's because none of us, however clever, have a crystal ball. Of course, with MSE it can help you make better informed choices, but even then there's no guarantees in life.

It's also a waste of energy fretting over. 'What could have been'. That just makes you more frustrated. What you should be thinking is ,what do I have ?"

You have your own home, which is many peoples dream. Some people can't even raise the deposit for a mortgage, and whilst you may be paying somewhat more for yours than some, you still have your own home, or at least, part of it until you have bought it outright.

Also remember that whilst you may have paid more in interest, your property (depending where you live) should have risen in value . So, at the end of it all, even if you paid slightly more than you could have, the cost will see minimal in comparison to what your home will be worth 10 years from now.

You also have the option of overpaying chunks of your mortgage off with that 30k you have saved.....or you can use it enrich your life in some way. It's a lot of money, and you can do things with that money that many people can only dream of. Whether it's privately educating your children in a favourite subject or sport, or taking them abroad to experience different cultures, or just buying beautiful things or experiences that enhance your lives and leave you with memories more precious than gold.

Thank you for your post. I appreciate the advice and will definetly take it on board.
I know i should be greatful for what ive got. I suppose what makes it frustrating for me is that at the moment im in a very small house that i dont want to be in. Ive desperately tried to work hard and save these last 6 years so i can move up the property ladder. I also want to move so we can have another child. Although ive just sold my house i still dont have enough even with my savings to move to a house i want. If i had OP all this time i would probablyy have an extra £30000 equity which means the house i want would be in reach. Ive just tried so hard to save its disheartening knowing if id done the right thing i wouldnt still be so limited with my options. If i was happy where i was living i could probably accept it more but i hate living here and even if id just made a quick few minute phone call to reduce my term it would of helped but i didnt do that either.
Im very greatful that im on the property ladder and i suppose i just have to not think what could of been.
Ive just made a phone call to mortgage company and ive got app next week to change my fixed rate which i suppose is a start.
I know all i can do is move forward now and will just have to suck it up. Thank you for taking the time to help me Xx

edinburgher

I am confused - £30k equity is the same as £30k cash (as in a £30k chunk of wealth, bricks and mortar as opposed to paper).

You would have saved money on interest, but wouldn't your equity be the same?

ParkingForFree

rainbowcloudy wrote: »

I dont know how to not dwell on it. The more i think about it the worse i feel but i cant stop thinking about it. Im up in the middle of the night now. Ive let myself and everyone down and thid is totall consuming me now.

You must not let this consume you. Its easier said than done, I know. But you have to face facts. You CAN NOT change the past. Who knows what the future will bring? You might even win the bloomin lottery next month! Just live each day one day at a time. And realise that we all make decisions, or don't make decisions that are good for us. We can all only do our best!

There are many many things in life we wish we had done. At least you are now in a position to do the next best thing for you! Please please don't fret over this. Let it go.

rainbowcloudy

edinburgher wrote: »

I am confused - £30k equity is the same as £30k cash (as in a £30k chunk of wealth, bricks and mortar as opposed to paper).

You would have saved money on interest, but wouldn't your equity be the same?

Sorry i probably havent explained very well. Using rough figures my house is worth £140000 at the mo. If i put all my savings now onto my mortgage my balance outstanding would be about 50000, so i have 90000 equity.
If id OP with my savings all this time my balance would have chipped away and would be roughly 20000 so i would have an extra 30000 equity. These are rough figures and i would probably have a bit over in savings aswell. Im basically paying about £530 a month and £450 of that is interest so ive barely chipped away that much off my total balance.

rainbowcloudy

ParkingForFree wrote: »

You must not let this consume you. Its easier said than done, I know. But you have to face facts. You CAN NOT change the past. Who knows what the future will bring? You might even win the bloomin lottery next month! Just live each day one day at a time. And realise that we all make decisions, or don't make decisions that are good for us. We can all only do our best!

There are many many things in life we wish we had done. At least you are now in a position to do the next best thing for you! Please please don't fret over this. Let it go.

Thank you for your post. Very wise words. I really appreciate all the advice. Im going to try not to fret so much about it. I suppose at least i will learn from this and i can do something about it from now on.
I will keep re-reading your post and other peoples because it does help me put things into perspective. Thank you.

gallygirl

If it's any consolation, your figures are wrong. There is absolutely no way you'd be that much better off if you had overpaid instead of saving. Answer the following and I'll bung it in a calculator:
Total mortgage when taken out:
APR:
Monthly Payment:
Monthly Amount you could have overpaid by:
Years and months you've had the mortgage:
Amount you have saved in that time:

Also, I'm a bit confused about what you're saying re moving. If you've sold the house have you found somewhere else to go? Normally you'd be taking out a new mortgage anyway if you wee moving?