What's your mortgage interest rate at the moment?

sheslookinhot

5.00% - 5.49%

I'm with Nationwide. 5 yr tracker (+ .49 above BoE BR) started in 2005.

Merlin139

4.50% - 4.99%

4.89% fixed for 5 years from Feb 07 with Britannia BS. No fees

overpaying by £499 per month to pay in off in March 2012

I moved from after a 3 year fixed rate of 5.34% with YBS.

We only took out a 15% mortgage because we had paid off around 80,000 in the previous 3 years.

Kez100

5.50% - 5.99%

BOE plus .69 so 5.69at the moment - for full term no penalty with abbey. 8 years to go to full term.

JimmyTheWig

4.50% - 4.99%

Some low ones, which is good to see.
I'll come in now with my reason for asking.

Merlin is a perfect illustration.

Merlin139 wrote: »

4.89% fixed for 5 years from Feb 07 with Britannia BS. No fees

overpaying by £499 per month to pay in off in March 2012

For people, like Merlin and myself, with low mortgage interest rates, you don't want to be overpaying your mortgage. In fact, you don't want to be paying it off at all.

We've got two and a half years left on our 4.89% fix with Abbey. My wife doesn't pay income tax.
We were on a repayment mortgage, but have just switched to interest only. Not because we couldn't afford it, but because it doesn't make sense to pay off a loan that is at this rate.
The money that we're saving on our monthly mortgage repyament (about £450) is going to go into a Halifax regular saver and earn 10% interest. Even at the end of the year when we put it into savings we will be earning at least 6% on it. That's a clear profit over 4.89%!

It's cost us £75 to convert the mortgage to interest only, but we'll easily make that back.

Other people should consider doing the same, especially if you have the means to earn interest tax-free (e.g. non-tax paying spouse, cash ISA).

But even a high rate tax payer can get more than most are paying on their mortgage with the 10% regular saver.

JimmyTheWig

4.50% - 4.99%

The_Unready wrote: »

3.89% 5 year fix - finishing in August

Now that's going to be a rather large increase coming your way. :eek:
I hope that this isn't what your username is alluding to...

JonnyBravo

tinkerbell84 wrote: »

It's a First Direct 10 year fixed rate offset mortgage. They've since increased the rate to 5.99% but I'd already booked the 5.49% in April.

Currently 4.87% Nationwide (BoE -0.13%) but ends 30/9/08.

Then getting the same as tinkerbell84.

Merlin139

4.50% - 4.99%

JimmyTheWig wrote: »

Some low ones, which is good to see.
I'll come in now with my reason for asking.

Merlin is a perfect illustration.



For people, like Merlin and myself, with low mortgage interest rates, you don't want to be overpaying your mortgage. In fact, you don't want to be paying it off at all.

We've got two and a half years left on our 4.89% fix with Abbey. My wife doesn't pay income tax.
We were on a repayment mortgage, but have just switched to interest only. Not because we couldn't afford it, but because it doesn't make sense to pay off a loan that is at this rate.
The money that we're saving on our monthly mortgage repyament (about £450) is going to go into a Halifax regular saver and earn 10% interest. Even at the end of the year when we put it into savings we will be earning at least 6% on it. That's a clear profit over 4.89%!

It's cost us £75 to convert the mortgage to interest only, but we'll easily make that back.

Other people should consider doing the same, especially if you have the means to earn interest tax-free (e.g. non-tax paying spouse, cash ISA).

But even a high rate tax payer can get more than most are paying on their mortgage with the 10% regular saver.

Your reasons make sense to me but we are both tax payers and use our full ISA allowances in April each year. We are still saving each month and will transfer our full ISA allowances each April.

We chose to overpay our Mortgage by the maximum that Brittania would allow each month to clear the mortgage of 20 years in just over 5 years.

Having had an offset mortgage on our previous house between 1999 and 2001 and watching our balance go from 62K to 88K because it was so easy to drawdown funds to buy cars and motorbikes we decided that once we pay it into this mortgage we don't spend it on things we don't need. If we had not spent so much in those 3 years we would easily be mortgage free now.

We have used a regular saver in the past with the Halifax to build our savings and may look at the in the future. Used to bank with them but fell out with them at moved to the A&L last May. We maintain a balance of £2500 eachday to make use of the 6.5% rate on that and earn 6% before tax on our other savings.

tinkerbell84

5.50% - 5.99%

magicdogsbrain wrote: »

With 2, 5 and 10 year deals – ‘booking fees’ are important – need to include them in your disclosures also!

First Direct 10 yr fixed rate offset mortgage of 5.49%

Booking fee £299
Arrangement fee £299
Valuation fee £99

Fees cost less than first month's interest

(except we'll be offsetting quite a lot from day one )

garciansmith

6.00% -6.49%

Just reserved 6.25% 3 year fixed at Nationwide - not ideal but my LTV dictated that that was the best I could get.

Had my meeting with them on Saturday & the advisor suggested I act reasonably quickly on that rate - she's just called me to tell me that NW are withdrawing their current products at 5pm tonight & new, higher priced ones will take their place

JimmyTheWig

4.50% - 4.99%

Merlin139 wrote: »

Your reasons make sense to me but we are both tax payers and use our full ISA allowances in April each year. We are still saving each month and will transfer our full ISA allowances each April.

We chose to overpay our Mortgage by the maximum that Brittania would allow each month to clear the mortgage of 20 years in just over 5 years.

Having had an offset mortgage on our previous house between 1999 and 2001 and watching our balance go from 62K to 88K because it was so easy to drawdown funds to buy cars and motorbikes we decided that once we pay it into this mortgage we don't spend it on things we don't need. If we had not spent so much in those 3 years we would easily be mortgage free now.

We have used a regular saver in the past with the Halifax to build our savings and may look at the in the future. Used to bank with them but fell out with them at moved to the A&L last May. We maintain a balance of £2500 eachday to make use of the 6.5% rate on that and earn 6% before tax on our other savings.

Lots of fair points. You've reminded me that everybody's situations are different!