ING Direct mortgage

ian448

still showing 5.89% on my acc details

Jeannine

Just checked on the website - new lower payment from 1st November, so obviously this is at the lower interest rate (don't know what - it doesn't say). 5.89% still shown as it's the current interest rate.

I am pleasantly surprised!!:j

mr_jetlag

Jeannine wrote: »

Just checked on the website - new lower payment from 1st November, so obviously this is at the lower interest rate (don't know what - it doesn't say). 5.89% still shown as it's the current interest rate.

I am pleasantly surprised!!:j

You can check your new payment on this calculator (plug in your mortgage details to get a monthly figure), enter a rate of 5.39% (the maximum they are allowed to charge with the new BR).

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

wensleydaleuk

Had my letter today saying my rate is coming down to 5.39% :j

MarcD_2

Got my letter too and direct debit changed in time for 1st of the month payment. For those who don't still have a copy of the terms and conditions for the Flexible mortgage, you will find the 0.9% promise also set out in section 4 (Description of this mortgage) in your mortgage offer:

"Flexible mortgage - a variable rate, currently X.XX%, which will be less then 0.9% above the Bank of England Base Rate, for the period of the loan. Any change to our interest rate to comply with this rate promise will become effective from the 1st of the month following the month in which a Bank of England base rate change is announced"

MarcD_2

Those of you that still have a copy of the 2006 terms and conditions for the flexible mortgage with 0.9% rate promise (I don't seem to have a copy anymore, which is unlike me!) - is there any mention of a minimum rate?

I've been reading some articles about falling rates, with economists predicting rates to fall to 2-3% next year, and some not ruling out the scenario of rates falling to 0%. Apparently if this were to be the case most tracker mortgages have a 'collar clause', for example Nationwide mortgages will not go lower than 2.75%.

While not strictly speaking a tracker mortgage, I was wondering if ING have included a collar clause in their terms and conditions?

MarkyMarkD

"Most" don't, "some" do.

jeferey

MarcD wrote: »

Those of you that still have a copy of the 2006 terms and conditions for the flexible mortgage with 0.9% rate promise (I don't seem to have a copy anymore, which is unlike me!) - is there any mention of a minimum rate?

I can't see anything in the T's & C's about a collar / minimum rate. I've left my payment the same since I started last April and am overpaying 8% at the moment. Roll on lower rates - it will help me to pay off my mortgage quicker - target 2015 at 5.39%

mr_jetlag wrote: »

How do you leave your payments constant? ING do the DD adjustment for me and so I expect my (interest-only) mortgage payments to go down when they pull their finger out.

Just ask them

mr_jetlag wrote: »

Is it worth keeping them the same to reduce my principal?

Definitely - it will bring the term down and ultimately you will pay a lot less interest.
If the rates drop another 1/2% to 4.89 it will knock 3 months off my term. I'm hoping for a 1% drop this month which will knock 5 months off.

MarcD_2

Here we go again! Rates just cut to 3%! Will be a big difference to payments. Let's see how long it takes them to respond...

ian448

rates will be reduced from 1st Dec