Had a mortgage too long - it's going, going, gone!

beanielou

Happy shiny new diary :j

Ali-OK

Thanks for popping in Beanie :wave:

There's not alot financial going on to report at the moment - another NSD achieved though and carful taken to charity shop and registered there for Gift Aid.

More things collected that I put on Fr33cycle with a couple more due to be taken during the week.

Garden has progressed some more with one side path finished (one left to do but not part of this phase) and next weekend fingers crossed (if it's dry!) should be the finale with getting the grass down :j :j

Only fly in the ointment is finding the water feature base has a broken bit, so I'll be getting a replacement this week from where the patio came from. Hoping I can do the trip out there and drive on the fast roads.

Financials:
- bank account checked - nothing happening there today
- freepostcodelottery checked - there's a sign up for P!necone if anyone is interested - 300 spaces available during August
- Inbox Pounds - yay up at £19.00, £1 to go for cashout :j
- Qmee still 34p in the pot

DS has 2 films he wants to see at the cinema towards the end of the week so some spends to come there. Otherwise, will be a reasonably low spend week apart from usual monthly bills going out the bank. And no income expected now until I'm back delivering work in September :eek:

Ali-OK

Mortgage stats.

The MFW journey started on 31.12.13 but I was still paying off CCs (on 0%) until March this year and saving an emergency fund as well. With those 13 yrs and 9 mths left (now 12 yrs 1) I hope to shave off 4-5 years.

On I/O I guess every payment is an OP, but if it were on repayment £1032.41 is the monthly amount due with an end date of September 2027. I'd be 59 :eek:

I haven't reduced the term with my lender for the time being - my initial goals were to get the mortgage below 3x annual income which I've achieved based on last 3 years profits and each month I try and beat the previous month's OP - that's not always worked out this year though as the garden renovations have cost a fair bit.

Rundown of wholly capital payments of last 17 months, interest goes separately on a different date.

Jan 14 £694, Feb £707, Mar £713, Apr £730, May £750, Jun £775, Jul £806, Aug £811, Sep £835, Oct £860, Nov £925, Dec £1138

Ops for 2014 - £2,101.65. Interested reduced from £410.34 p/m to £380.73 or £13.44 daily to £12.52.

Jan 15 £760, Feb £760, Mar £800, Apr £900, May £930, Jun £780, Jul £920, Aug £975

Ops for 2015 so far £1,518.65. Interest reduced from £380.73 to £359.39 p/m or £12.52 daily to £11.82.

That'll do for now

Brogden

Ali-OK wrote: »

I haven't reduced the term with my lender for the time being - my initial goals were to get the mortgage below 3x annual income which I've achieved based on last 3 years profits and each month I try and beat the previous month's OP - that's not always worked out this year though as the garden renovations have cost a fair bit.

Great stuff Kid !!

Ooooh......strange unfamiliar place......I'd better behave !!

Talking about the term of the mortgage......is there any point in thinking about reducing the term? As I think about it any of us might aswell have the longest term possible just in case (god forbid) anything carp happens ! On a repayment basis this obviously reduces the amount of capital repaid but we can all overpay if we can afford it....and are disciplined enough :cool:.

If I did anything right when I was stupidly remortgaging to 'buy-out' debts, it was to set the end of the mortgage term to state pension age :eek: This has allowed me to feel reasonably chilled now. I can imagine I would feel a little hot under the collar if the term was going to end in a couple of years and that an extension may not be granted :eek: !! Yes.....I am on interest only too with a tiny capital payment each month but happily with some plans to make a difference which I am currently arguing about on my thread :rotfl:!!!

I plan to start logging my mortgage activity on the forum but not for a short while.....looking at everything together is too scarey :eek: !!

Broggers x

Ali-OK

Morning Broggers

It's akin to moving house coming over here..familiar area just not met many new neighbours yet and keep popping back to see the old ones

Not sure I'll officially change the mortgage term - they want £75 to do it and the same again if I put it on repayment :eek:. Both a poor use of money and they inflict a ceiling on OPs that would cost me more in interest. When I finish before the due end date, I'll leave £1 or something owing...the redemption fee should diminish in value the longer it's left as well.

You're right in that the min repayment amount reduces with the longest term if the worst happens.

Ahh yes, the voice of difference popped in didn't they! You have to do what's right for you and you'd put alot of thought into that and your post.

Be great when you've beaten the debt dragons and start charting your mortgage progress too.

Brogden

Ali-OK wrote: »

Morning Broggers

It's akin to moving house coming over here..familiar area just not met many new neighbours yet and keep popping back to see the old ones

Not sure I'll officially change the mortgage term - they want £75 to do it and the same again if I put it on repayment :eek:. Both a poor use of money and they inflict a ceiling on OPs that would cost me more in interest. When I finish before the due end date, I'll leave £1 or something owing...the redemption fee should diminish in value the longer it's left as well.

You're right in that the min repayment amount reduces with the longest term if the worst happens.

Ahh yes, the voice of difference popped in didn't they! You have to do what's right for you and you'd put alot of thought into that and your post.

Be great when you've beaten the debt dragons and start charting your mortgage progress too.

I had thought about leaving a tiddly balance as and when and IF the great day comes along but I found something out the other day.....I suppose I should have known really . If I allow my fixed rate period to expire which it will before Crimbo (just as I'm chucked out of work) and go by default onto the SVR there is no redemption fee which would otherwise be 3% if I could pay it all off . Is this not similar for you or is your rate fixed for the full term with penalties applying throughout?

This is another bl**dy thing for me to make a decision on :mad:

Broggers x

Ali-OK

Hmm...that's a good point and I'm not sure is the answer.... mine has never sat on the SVR - too efficient sorting a new fix 3 months before the last one ends - bet you're not surprised at that :rotfl:

Mine seems to be a fixed fee, maybe it depends on who the lender is? They even enticed me by lowering it from £250 to £225 to move over from an A&L to a Spanish Bank product. And current fix is a 5 year (ends 2nd Jan 18 oddly, so is actually 5 years and 2 months???). They're a law unto themselves and that includes ERCs - used to lower in % for each year passed in the fix so 5-4-3-2-1...not anymore, 5% all the way through. I'm definitely going to use a broker and shop around for a new lender - but then I had so much hassle with N*****w*de trying to charge an ERC that didn't exist and delayed a house move and increased cost in solicitors letters, I vowed I wouldn't.

Sounds more like an ERC being a percentage, which is a bit cheeky on SVR. Perhaps someone reading has more knowledge or experience with this and will chip in

Edit: If you redeem during fix then yes that's the percentage, but there might be a £££ for tying up at the end on top, whether on fix or not.

Brogden

Ali-OK wrote: »

Hmm...that's a good point and I'm not sure is the answer.... mine has never sat on the SVR - too efficient sorting a new fix 3 months before the last one ends - bet you're not surprised at that :rotfl:

Mine seems to be a fixed fee, maybe it depends on who the lender is? They even enticed me by lowering it from £250 to £225 to move over from an A&L to a Spanish Bank product. And current fix is a 5 year (ends 2nd Jan 18 oddly, so is actually 5 years and 2 months???). They're a law unto themselves and that includes ERCs - used to lower in % for each year passed in the fix so 5-4-3-2-1...not anymore, 5% all the way through. I'm definitely going to use a broker and shop around for a new lender - but then I had so much hassle with N*****w*de trying to charge an ERC that didn't exist and delayed a house move and increased cost in solicitors letters, I vowed I wouldn't.

Sounds more like an ERC being a percentage, which is a bit cheeky on SVR. Perhaps someone reading has more knowledge or experience with this and will chip in

Edit: If you redeem during fix then yes that's the percentage, but there might be a £££ for tying up at the end on top, whether on fix or not.

Mine has always been on a fix too but I am going to have to do a bit of work now because that may or may not be the best option. The big question is what will hapen to interest rates going forward?

Whether the early redemption penalty is 3% or 5% it is absolute pooh that it doesn't taper off as the term progresses and we're both in the same boat there. In fact.....you've set me off now......it's disgusting :mad: !!

It is worth raising this point though Ali. It could be you can escape without penalty if you get the timing right

Broggers x

Ali-OK

There's some variables to consider when you get towards redemption, being in or out of a fix is one of them -a decision to take a few years before it seems. I don't know if it will affect you if you're using pension lump sum, but some lenders require a minimum £25k mortgage to give a fixed deal anyway.

I'll be looking around to move lenders towards ends of 2017 in readiness for the ERC to have run out before moving it. I'll be in a much better position than 2012 as didn't have 3 years accounts, there was the debt from business start up and I wasn't earning 3x what I was borrowing, so it made sense to stay put and fix it to get through that period. Glad I did in some ways as the new mortgage rules have hopefully settled and at least I can ensure I've a good financial history past and present when I do. It'll probably cost me in interest rate...I think they'll go up, they can't really go down :rotfl:, by how much and when...that's how long is a bit of string

Right, back to office packing and moving and it's raining :mad: and muggy. Urgh...!

Ali-OK

Prompted into action by SJ's TT's to a holding account, I've finally moved my Club Lloyds Reg Saver (that matured in June ) to a Club Lloyds Saver..only 0.75% gross but monthly interest so will use that as part of new TT set up.

Matured account gave me an additional £2.56 interest - taking it to £4,020.07 so August TT 'holdings' are:

£20.07 to start with
£14.22 from Club Lloyds current account August credit interest
£2.63 in from Qu!dco
£2.00 I need to move from TCB
£3.00 - just completed another P!necone survey

£41.92 Ooh that's not a bad start for free money

TT's that I'll do end of each week from current account and anything I put in the bank from the change bucket (I save everything up to £2 coins, no wonder I don't spend much money, I run out of my £10 a week personal spends before I've started :rotfl:)

I probably need to move the excess over £5k from the current account too - end of month job when a few commitments are paid (boiler service, dentist and cinema with DS).