In need of some advice

Hi there everyone,

First of all, I'm a single 49 year old chap and work as a truck driver earning around £30k a year (depending on overtime and night out money). I have always rented but last year decided to try and buy my own place (thinking for the future for once!) I was looking to buy a 2 bed maisonette.

I used the services of a mortgage advisor who was recommended to me by a friend. In the end I managed to get a 16 year mortgage with The Woolwich and after putting down a £5k deposit using my savings I was loaned £67k. My monthly payments should've been £507 but I asked to overpay and I agreed to pay £650 every month instead, which I've done for exactly one year now. I checked last week and the current debt is now just under £62k.

The advice I'm looking for is hopefully quite simple for those of you in the know, but I haven't a clue what will be the best for me to do if I want to pay off my mortgage even quicker.

I can afford to set aside around £1000 a month towards my mortgage and using the calculator on here shows me that if I get a new mortgage for just 5 years my payments will be just over £1000 a month, and of course that means I could be mortgage free in just 5 years, which sounds great! :j

Am I going to have to use another (or possibly the same) mortgage advisor to get the best deal or could I do it on my own?

What do I need to look out for? Can I just go for the one that gives me the cheapest monthly repayments or isn't it that simple?

As you can tell, I'm clueless with mortgages and don't have any idea what the different mortgages offer, what fees you can't avoid, what the best options are etc.

Any advice appreciated.

Thank you for reading. :)

LJ.
I don't want to join any club that would consider someone like me as a member! :think:

Replies

  • A_Frayed_KnotA_Frayed_Knot Forumite
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    LJA66 wrote: »
    Hi there everyone,

    First of all, I'm a single 49 year old chap and work as a truck driver earning around £30k a year (depending on overtime and night out money). I have always rented but last year decided to try and buy my own place (thinking for the future for once!) I was looking to buy a 2 bed maisonette.

    I used the services of a mortgage advisor who was recommended to me by a friend. In the end I managed to get a 16 year mortgage with The Woolwich and after putting down a £5k deposit using my savings I was loaned £67k. My monthly payments should've been £507 but I asked to overpay and I agreed to pay £650 every month instead, which I've done for exactly one year now. I checked last week and the current debt is now just under £62k.

    The advice I'm looking for is hopefully quite simple for those of you in the know, but I haven't a clue what will be the best for me to do if I want to pay off my mortgage even quicker.


    How long did you take your first deal for? eg 2years or 5 years ??

    I can afford to set aside around £1000 a month towards my mortgage and using the calculator on here shows me that if I get a new mortgage for just 5 years my payments will be just over £1000 a month, and of course that means I could be mortgage free in just 5 years, which sounds great! :j
    Would that be approx or most you can afford ?? If so, I would recommend maybe a 6 or 7 year term - this way your mortgage payments would be slightly less but if you get a deal that lets you overpay 10% per year it gives you the option of making your payments up to the £1000 or saving as emergency fund. If not needed as e/f then o/p 10% or whatever is allowed in a year without penalties, this way you would probably still be mortgage free in 5 years.
    Am I going to have to use another (or possibly the same) mortgage advisor to get the best deal or could I do it on my own?

    You can investigate mortgage rates for yourself, just have a good look about, changing to another company may have fees, so you may be better staying with your current lender. Of course this is if you are out of your current deal, if not there may be charges to change your mortage outwith your current deal.

    What do I need to look out for? Can I just go for the one that gives me the cheapest monthly repayments or isn't it that simple?


    No, look out for charges both for changing your mortgage and early repayment charges if your pay off early, also make sure how much you can o/p without charges, and also look for the best interest rate.

    As you can tell, I'm clueless with mortgages and don't have any idea what the different mortgages offer, what fees you can't avoid, what the best options are etc.

    Any advice appreciated.

    Thank you for reading. :)

    LJ.







    So just to recap;


    If you are out of your current deal, then seek a new one, making sure you get the best possible interest rate. Make sure you are aware of any early repayment fees and how much you can o/p in the year without fees,
    Calculate this and if you have no emergency fund, then go for a 6 or 7 year deal, this way allows you to save for life's little emergencies. If you have an e/f then go for the shorter term, this way still lets you o/p


    You can still have a longer term but o/p (so long as you are not charged a penalty for over overpaying ) within limits still end up paying within your target time. If you go for, say, a 2 year deal, then it can always be re-assessed at the end of that time, then go for something that agrees with you more.


    Hope this helps a little.:)
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • getmore4lessgetmore4less Forumite
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    You can just overpay the loan you have but you need to check if there are any charges.

    The issue you get if you change the mortgage/payment to a shorter term is it commits you to the higher payment. Keep the term longer and overpay you can always reduce the payment.

    More details of the mortgage you have would be useful.
  • bexster1975bexster1975 Forumite
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    Hi

    I think mostly covered in the above posts. You don't need an advisor, and if you stay with your current provider it's possible you won't have arrangement fees. That doesn't mean it's best to stay with them however. You can start with comparison sites to get best idea. Do you want a fixed? I wonder if an offset would work well for you. if you don't have an emergency fund I would be reluctant to put all cash into mortgage, there is no guarantee you will be able to access it again. Paying off the mortgage is great and provides security and peace of mind for the people who decide to do it early. An offset would offer you the best of both worlds, no interest on the part of the mortgage that's offset, but access to your money if you need it.

    Good luck whatever you decide to do

    Bexster :)
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