The Edcawber Principle

edinburgher

£48.30 paid off CC (regular 1% of balance + £2 cashback from S123 after fees).

£28.55 to pay off per day if I'm to pay off the balance with my 13th wage on the 1st of June. I've had an offer of £75 on a Blu-ray, but have made a counter offer of £80 as a request for a 13% discount is a bit rich

Suffolk_lass

Our BS offers a swap between repayment and IO for a fee, which allowed us to go for a long-term view (we went base-rate tracker, but a long-term fix would have been fine) - it seems that the limit of 10% p.a. OP dropped out either when we went IO or after x years, so I have paid off the end of month floor sweepings plus lumps and things like endowment policies to get it down, since we got into a position to do so.

You do need to be very clear why you are doing it, if you go big project, and consider if 2nd loan is best way to go. We have previously gone 2nd loan at higher interest and then remortgaged for the lot, once work done and value added. We have also sold the house once work done because the (cowboy) builders took all the pleasure out of the house and we could not stay as I could no longer sleep! 

It's a good idea to be in the habit of not having any money by being constructive with it - we were far too spendy in our thirties through forties

edinburgher

Is wanting a house that meets our requirements, is in our chosen school district and would be easily sold not enough? I don't think we would make back the full cost, but we are likely to here for 10+ years to eat the sink costs

Suffolk_lass

edinburgher said:

Is wanting a house that meets our requirements, is in our chosen school district and would be easily sold not enough? I don't think we would make back the full cost, but we are likely to here for 10+ years to eat the sink costs

It is plenty, and as core criteria, that clarity is brilliant. So it leaves the question, is it your current house or a different one and you have I think, answered that by looking at extending over moving. You have done loads already where you are are probably know the worst about your house. I would always favour work over moving. 

I do still covet the derelict farmhouse I wanted to renovate though.

edinburgher

I love the countryside, but I wouldn't like to be in the sticks. Is it too late for a retirement project?

greent

Would another mtge (we often had additional borrowing for 'projects') be an option with just that at IO? - or would you want to go fully IO? It's much easier to change lenders (assuming in general that affordability criteria are met )now than it was at one point that you can always change your minds down the line, anyway (says the person who has NEVER changed lender after the first year of first mtge back in the very early 1990s...… and even has that same lender for the BTL...… rolls eyes at herself...)

edinburgher

I'd need to run the numbers greent, but probably all IO for at least a couple of years, our plans would be expensive...

badmemory

Just how much would you save by going IO?  Is it enough to warrant the change/additional mortgage length?

edinburgher

Quite a bit. For our current mortgage (no extra borrowing), we pay c. £820/month. For a remortgage, perhaps £600/mth. For an IO remortgage, perhaps £210/month. It would make quite a difference.

£45.82 paid off CC.

Suspect I have some sort of lurgy. Very sore throat last night and only got just over an hour's sleep. In work, but it is hard going!

beanielou

Take it easy