ING Direct mortgage

MoneySavingNovice

Got my letter today confirming the new rate at 1.89%.

I was surprised that they were also suggesting that I arrange to over pay! I'm not going to as I can get better savings rates after tax than 1.89%.

ING suggestion does indicate that they aren't making a profit on these Mortgage any more!

AMO

Yep! I got 1.89 come through the door also! Well chuffed!

AMO

AMO

jeferey wrote: »

Definitely 1.89% - new rate for our mortgage. :j
Fantastic news - who needs savings! Feel sorry for all those pensioners.

Yes, fantastic for us.

Not good to hear news like this:
http://news.bbc.co.uk/1/hi/england/hampshire/7908635.stm
Mr and Mrs Pyatt moved to Lymington six years ago and were living off their savings, but after a few years the money ran out and Mrs Pyatt became depressed.

Although I don't think that the current economic downturn can be blamed for 'a few years'. Nevertheless, there are probably more people that are going to feel like that.

AMO

Jeannine

I was surprised that they were also suggesting that I arrange to over pay!

Well, I think it's a good idea to overpay now the monthly payment has dropped so much - get rid of that mortgage more quickly!

jeferey

Jeannine wrote: »

Well, I think it's a good idea to overpay now the monthly payment has dropped so much - get rid of that mortgage more quickly!

I agree - I have revised my car loan payments at work and will add £100/month to my mortgage payment making it £160/month overpayment. Yes, it might be possible to get slightly more in savings after tax, but as Jeannine said, my aim is to get rid of the mortgage as quickly as practical. This low rate will not last forever and then the gap between mortgage and savings rate will probably be closer. By paying off as much of my mortgage as possible now, it will reduce the interest payable in the future when the rates goes back up (which they will!). If the rates stayed where they are, I will be mortgage free in 4 years.

Jeannine

Well said jeferey!!:beer:

reck_uk

Yeah from a mortgage point of view this new rate is great. Obviously the flip side to this is that my savings aren't doing to well but i'm going to use this time to reduce my mortgage as much as possible as well.

reck_uk

So it sounds likely another interest rate cut is going to happen today, 0.5%?

GoToGal

Wonder if the rate will be cut if they decide on "Quantitative Easing"

jeferey

reck_uk wrote: »

So it sounds likely another interest rate cut is going to happen today, 0.5%?

Looks very likely - so mortgage would be 1.39% :j