ING Direct mortgage

jeferey

Fantastic news - that will be 3.89% I presume

bb_forrest

This will mean that I am overpaying my mortgage by over £450 a month.

At least whilst I still have a job!

anonymous-coward_2

Can someone reconfirm that our policy does not have an "collar" attached. 3.89% standard variable.. That will be unbelievably low. Can someone post a copy of the policy on rapidshare? I don't think I have kept mine in the file

meshs10

I'm probably being thick here and I don't have my T's and C's to hand, but I'm hoping someone in a similar position can help me - I've got a two year fixed term mortgage with ING Direct, which comes to an end this month. So

- does my mortgage rate revert to the SVR that's on their website?
- will I have the rate cut passed onto me next month?

Any answers appreciated,
Cheers

Jeannine

I can find no reference at all in the small print about any sort of "collar". So I would expect the new rate to be 3.89% from 1st December. Wow!!:j (That's for the "no more than 0.9% above BBR" product.)



meshs10 ~ it states that at the end of the fixed rate term, the rate will be the SVR, currently 6.34%, but no doubt that will change at some point...

belge75

meshs10 wrote: »

I'm probably being thick here and I don't have my T's and C's to hand, but I'm hoping someone in a similar position can help me - I've got a two year fixed term mortgage with ING Direct, which comes to an end this month. So

- does my mortgage rate revert to the SVR that's on their website?
- will I have the rate cut passed onto me next month?

Any answers appreciated,
Cheers

I'm in a similar position (2 year fixed rate coming to an end in early January). If you look at your online Mortgage Account Summary it should display your fixed rate account and the flexible mortgage account that will be used for the remainder of the term. In our case this currently shows the variable rate as 5.39%. I'm keeping my eyes peeled for the rate to come down on Dec 1st to 3.89%.

As far as I'm aware, the mortgage offer we took was the flexible mortgage with the +0.9% guarantee and this had the 2 year fixed offer attached to it, which we paid a 'fixing fee' for.

Vorlon-Ambassador

I'm a bit confused about ING overpayments. I'm hoping one of you ING overpayers can break it down for me a little.

The T&Cs on the site says overpayments are "not a 'capital repayment' and will not reduce your monthly payments or mortgage term."

So... if I overpay I'm paying off the capital, but that won't reduce my future interest payments should I stop overpaying as the money's just going into an overpayment reserve?

That doesn't make much sense to me

HaroldPWH

Vorlon-Ambassador wrote: »

I'm a bit confused about ING overpayments. I'm hoping one of you ING overpayers can break it down for me a little.

The T&Cs on the site says overpayments are "not a 'capital repayment' and will not reduce your monthly payments or mortgage term."

So... if I overpay I'm paying off the capital, but that won't reduce my future interest payments should I stop overpaying as the money's just going into an overpayment reserve?

That doesn't make much sense to me

Your overpayments reduce your Outstanding Balance (OB) and so you save on interest charges, as interest is charged on the OB.

The term will be reduced as your OB will come down quicker than your term at purchase.
If you want to make a capital repayment call ING - make it and then this will reduce your monthly amounts - however you will not have access to that money again as you do with general overpayments.

A good way to look at the overpayment reserve is that of a tax free savings account - it is there if you need it - otherwise keep chipping away and be mortagge free earlier!

anonymous-coward_2

Overpayment won't make much sense now.

Why pay off a debt with 3.9% interest working against you when your can make the interest work for you when you put them in an ISA account for a 6% return?

I realise that the mortgage rate comes down quickly because they are obliged to pass on the saving to the customers but my saving has not come down yet. I am still on a 6.25% interest on saving...

beartie

surely it depends on the relative size of your mortgage / savings. If you owe £100k@ 3.9% and only have £10k saved earning 6%, you are better off NOT saving????