ING Direct mortgage

MarkyMarkD

Anonymous's point is that, unless you are maxing out your ISA savings, you should do so before considering overpaying on your mortgage, given that the tax-free rate of return on the ISA is way higher than the rate payable on the mortgage.

sleepless_saver

beartie wrote: »

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????

If you only have £10k in savings it is probably better to keep it as an emergency fund! But if you did use it to pay off £10k of your mortgage at 3.9% you would save only £390 a year compared with the £600 you would make if you had it in an ISA at 6%. So better to save on both counts:D.

daxu

Hi,
Can anyone confirm the rate reduction from 1st Dec? I haven't received any letter from ingdirect about reductions.

Many Thanks

Jerry

Jeannine

SVR down today to 4.84% (4.9%APR) so I hope to have a reduction in my flexible rate soon - I'm on the "no more than 0.9% above BBR" one. Anyone else heard yet?? Expect it to be 3.89%...:j

mr_jetlag

Jeannine wrote: »

SVR down today to 4.84% (4.9%APR) so I hope to have a reduction in my flexible rate soon - I'm on the "no more than 0.9% above BBR" one. Anyone else heard yet?? Expect it to be 3.89%...:j

Last time the reduction came through on the website on the 20th... so I expect by tomorrow we should see it then. SVR usually comes down first but everyone should see the new rate effective on 1 December. I'll check tomorrow and let everyone know!

3.89% means a fall from peak to trough of over £400 in my monthly mortgage! :beer:

MoneySavingNovice

Currently I have a reasonable sum in the Overpayment Reserve.

Has any-one tried to ask for money in the Overpayment Reserve back?

If so what is the response from ING at the moment. I can’t find what the rules are about this in the T&C’s.

I think that I could find a better return in a normal savings account than the 3.9% they will have to charge from the 1st December

mr_jetlag

MoneySavingNovice wrote: »

Currently I have a reasonable sum in the Overpayment Reserve.

Has any-one tried to ask for money in the Overpayment Reserve back?

If so what is the response from ING at the moment. I can’t find what the rules are about this in the T&C’s.

I think that I could find a better return in a normal savings account than the 3.9% they will have to charge from the 1st December

I don't think you can ask for the money back, but you can take a payment holiday up to the amount in your reserve. So for example if you have the equivalent of one and a half months' payments in your OR, you can ring them up and ask this to be applied to your next two months payments and your DD will adjust temporarily.

I've not overpaid myself but am thinking of doing so now (we've maxed out our respective ISAs, there are no good instant access products at the moment, and we could use the cushion!)

sleepless_saver

MoneySavingNovice wrote: »

Has any-one tried to ask for money in the Overpayment Reserve back?

My ING T&Cs say you can't have the money back.

Jeannine

mr_jetlag wrote: »

Last time the reduction came through on the website on the 20th...

You're right! New payment shown from 1st December.:j

mr_jetlag

Yup, down it comes... :T Now to sort out that overpayment...