ING Direct mortgage

belge75

Similar situation for me too - IceSave saver and ING Direct mortgage. I'm coming off the fixed rate offer in January and have budgeted for a mortgage rate of 6.34% (5.5% base rate + 0.89%) in case there's some unforseen inflation round the corner.

Rather than keeping my repayments high I'm planning to place the extra funds in a savings account and then make capital repayments every time the savings account reaches a £1,000 balance. At least that allows me to get a reasonable return on my savings, keeps some money to hand should I need it for unforseen circumstances, but still reduce down the capital balance as and when I can (and hopefully keep negative equity from our front door!)

mr_jetlag

belge75 wrote: »

Similar situation for me too - IceSave saver and ING Direct mortgage. I'm coming off the fixed rate offer in January and have budgeted for a mortgage rate of 6.34% (5.5% base rate + 0.89%) in case there's some unforseen inflation round the corner.

Rather than keeping my repayments high I'm planning to place the extra funds in a savings account and then make capital repayments every time the savings account reaches a £1,000 balance. At least that allows me to get a reasonable return on my savings, keeps some money to hand should I need it for unforseen circumstances, but still reduce down the capital balance as and when I can (and hopefully keep negative equity from our front door!)

Belge and MSNovice - I guess everyone's circumstances are different, but some are less so than others

I already have an instant access emergency fund of 4mos salary, and one reason I think overpayment is the right move is that I don't think we've seen the bottom so far either in housing or in stocks. Also please note my ING mortgage is interest-only, so my overpayments are actually reducing the daily interest calculations on the overall mortgage balance, while also ensuring I don't fall into negative equity if house prices fall another 20%.

MSNovice - yup, that is what I meant. To get an effective rate of 2.89% on your savings you need a 4.8% AER account. I have turned risk averse on high interest accounts sinice the Icesave debacle, but I'm not alone. Investors in US Treasuries have opted for 0% yield rather than put their money in stocks this week! :eek: :eek:

MoneySavingNovice

Its gone down to 2.89% as from the 1st Jan 2009 - ING are keeping to their agreement!

mike509

Hi, how do you know this please. I haven't received anything and my rate is unchanged on their website. Also, their variable rate hasn't gone down 1%, though it may have dropped 25 points.

MoneySavingNovice

mike509 wrote: »

Hi, how do you know this please. I haven't received anything and my rate is unchanged on their website. Also, their variable rate hasn't gone down 1%, though it may have dropped 25 points.

Hi mike509,

The Rate on the Website does not normally not change until 1st Jan, however for me the next amount due has gone down to an amount equal to 2.89%

There are different T&C - have the the Flexable Rate which will never be above 0.9% above base rate. ING don't any longer publish this rate as their Standard Variable Rate.


Hope this helps

mike509

Thanks. I do have the Flexible mortgage with the rate promise, but worry they'll renege. I'm overpaying so wont be able to tell from the amount, but thought they would change my %tage rate in the Account summary which they haven't. If they leave that to 1 Jan thats okay and i guess if they've changed one, they'll change them all.

Should drop another 1% next month too!:j

MoneySavingNovice

mike509 wrote: »

......Should drop another 1% next month too!:j

Sorry....... why?

mike509

Oh, just because I think its still likely that base rate will drop again next month. Probably to 1%. Not sure we'd want it much lower than that, because though I like doing the overpayments, the house's value is probably dropping faster, and 0% base rates will signify an economy in a pretty perilous state.

jaz123_2

Got letter today 24/12/08 confirming MSN that new rate effective from 1 Jan 09 will be 2.89%

costingbunny_2

mike509 wrote: »

Thanks. I do have the Flexible mortgage with the rate promise, but worry they'll renege. I'm overpaying so wont be able to tell from the amount, but thought they would change my %tage rate in the Account summary which they haven't. If they leave that to 1 Jan thats okay and i guess if they've changed one, they'll change them all.

Should drop another 1% next month too!:j

Hi
I overpay on my NIG mortgage but the letter you will get will tell you the new amount so you know you have the reduction - letters usually arrive on 23 the month - not had mine yet but sure the Xmas post is slowing it down. Happy Xmas.