Thirty something dreaming of not paying mortgage

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  • kaycastle
    kaycastle Posts: 355
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    So I'm in the early stages of coming to the end of the 2 year fixed rate.

    Did comparisons and looked at what our current lender would offer us. Despite their re-mortgage rates being tons better than what they're offering us, they can only offer us what we're getting through their online calculator.

    If we stayed with them our monthly payment would go up! Despite it being £100 lower for new remortgaging customers with the same bank. They started patronising me about the bank of england putting interest rates up as well...so I asked them if that was true why have their newer customers got a even better rate than what we got a couple of years ago.

    So now have an appointment in a couple of weeks and will start transferring...we should be able to get to monthly payments of £850 a month easy. Which will be nice :)

    But then I don't know what the cost of the remortgaging process will be. It looks like product fees are all around £1000, even for sticking with the same lender. So we will have to see how that pans out.

    Ugh I'm so not looking forward to this...I hate the dealing with company aspect of mortgages. its the worst.

    Part of me thinks the 5 year fixed looks very attractive. But it probably wouldn't be worth it at this stage. I don't know.

    ughhhhh.

    I feel stuck
  • Tropically
    Tropically Posts: 427
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    Did you ever find some good blogs? I am looking to find some good ones too. I don't need to read about how to save or how to do the maths. I am looking for blogs which talk about the emotional journey of saving and working to FI.

    I have been reading Dumpster Dog and find it interesting!

    Good luck with the mortgage refinancing.
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
    Total OPs: £29529
  • kaycastle
    kaycastle Posts: 355
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    Hiya tropically, I haven't found one yet. I'm just checking out dumpster dog and I like it. :) Thank you

    I was thinking of starting my own but I'm also trying to be good with my computer time so it clashes with that goal.

    I think we are going wih the 5 year fixed rate. I know I can't predict it but I well think rates are going to go up in the next 5 years. We should still be able to get under 900 a month on a 5 year fixed rate. And my aim is still to pay off the mortgage in 10 years. So this way it will mean before I pay off mortgage we will only have to do this process one more time. That is a nice feeling.

    It means I get 5 years to obliterate as much as possible. Nice not to have such a tight deadline. I wonder if I could reach 100,000 :p I haven't checked my spreadsheet.
  • kaycastle
    kaycastle Posts: 355
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    Good morning all. I don't have much to share today besides this startling discovery.

    I realised something terrible after reading Terry Pratchett's "Mort".

    Is that the etymology of mortgage literally means "death pledge".

    How absolutely horrible is that. Can't believe I've never realised before.

    Oh and also our mortgage got under the £210k mark. yayyyyy!
  • taka
    taka Posts: 3,483
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    kaycastle wrote: »
    Good morning all. I don't have much to share today besides this startling discovery.

    I realised something terrible after reading Terry Pratchett's "Mort".

    Is that the etymology of mortgage literally means "death pledge".

    How absolutely horrible is that. Can't believe I've never realised before.
    It is really depressing isn't it! I have to be careful whenever I try to shorten Mortgage when writing lists. Shortening it to mort seems to be tempting fate - I have to write mortg! :eek: :rotfl:
    kaycastle wrote: »
    Oh and also our mortgage got under the £210k mark. yayyyyy!
    Yay - contratulations! :T I love your diary!
    Mortgage free as of 12/08/20!
    MFiT-5 no 45
    You can't fly with one foot on the ground!
  • greent
    greent Posts: 10,669
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    taka wrote: »
    It is really depressing isn't it! I have to be careful whenever I try to shorten Mortgage when writing lists. Shortening it to mort seems to be tempting fate - I have to write mortg! :eek: :rotfl:


    I shorten it to mtge - which I think was the 'standard' abbreviation used in the bank I used to work in many moons ago :)

    Well done, kaycastle, on sub 210K! :) :T
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    Net sales 2024: £20
  • kaycastle
    kaycastle Posts: 355
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    Thank you taka and greent :)

    I'm going to do a proper update post after my meeting with mortgage adviser this Friday.

    I've also had my annual interest on savings paid and of course all my interest rate slashes on my monthly savers :D so I've had to sort all that out.

    I've started some new activities for fitness. And also ebaying my parents old stuff is going really well :D
  • kaycastle
    kaycastle Posts: 355
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    I need advice so badly! This is long post. And I'm feeling a bit wound up.

    So we are at the end of our 2 year fixed rate and this is the first time of this process so I'm quite new to it. And I've already had enough lol

    I just had a call with the company we used before and who is going to find mortgage products for us now after that conversation and I'm just frustrated.

    1) They are insisting on putting in our term at 23 years. Is this normal. I know we are technically at this point but I thought I'd be able at least the first time to remortgage on to another 25 year product. I would only be about 55 then! Because when you go down to 23 years it puts up the monthly cost massively. And may plan is to massively overpay anyway so its not going to be around for 20 years or anything. So am I allowed to say to him, no only do 25 year term or am I not allowed to now or something?! I thought I got to decide but they wouldn't let me.
    2) This isn't a question but I just find talking to this profession the worst. They always seem so patronising and annoying.
    3) The property valuation. I don't understand Zoopla at all. They looked at the valuation for it and according to zoopla our value has gone down by £7000. Obviously they don't know about all the work we've done and they are sticking at the purchase value for us but looking at zoopla I'm so confused. Because an absolutely identical house a few doors down is apparently up in value by £30,000 compared to us. How the hell does that work. And when I actually look at sold prices this year. A 2 bed down the road sold for £300k (like 30k more than what we brought for). One for £280 (and that was absolutely terrible, needed completely updating). One for £320. So why the hell is zoopla saying our one must be only £260k in value. I think I'm being objective about this as well, I would be the first one to say if I thought values had gone down but I generally think if we put our house up for sale we would get more than what we paid for it from what I've seen on actual sold prices. So why does zoopla valuation come out lower for us but much higher for identical same number of bedroom house on the exact same road. what the actual.I'm ranting now. Its just an unnecessary stress, I didn't think in the south east I had to worry about the valuation at all but £7k less could make a big difference to LTV. Its stupid.
    4) they just kept trying to sell me lots of insurance products like critical illness cover and I kept saying no. Its so annoying. And I felt they were trying to manipulate me at one point into feeling worried about if I fell ill and couldn't pay. And I just said thats what an emergency fund is for.


    I've asked for 5 year fixed rate products as I want to be safe on the interest rate for a while and we might have kids at some point in the next 5 years. But also after this...it will be so nice to have a 5 year break from talking to these people.

    I feel like paying off the mortgage is even more important, this whole process just makes me feel worried that someone else owns most of my home. I'm feeling a bit deflated :(
  • kaycastle
    kaycastle Posts: 355
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    So things have moved much further along :)

    We've agreed a 5 year fixed rate product over 25 years and have paid the product fee and admin fee to the mortgage adviser. The legal fees are all paid by the lender so thats alright. And there are no other costs to look at for in the next few months. So that is that.

    Having £1000 disappearing from my account all at once is sad though :(

    Our monthly mortgage will be £895 so I'm really happy we're under £900. And I think its the best for us as we might have kids within the next 5 years and I don't feel like interest rates will be better in 2 years and with the product fees mean that we've already saved at least 2,000 over the next few years just by going with a 5 year product. Hopefully we've made the right choice.

    I started overpaying last summer and I will have overpaid a total of £6700 by the time our mortgage changes which I'm pleased with but I think I can do better next time. We do have savings of about £15,000 at the moment so that's good too.

    If I just stick on my standard monthly Ops of £300 the mortgage will be just under £150k in 5 years. That seems so small compared to now even but I think we can do better, just got to balance it with house improvement costs.

    Will post more at the weekend when I've had time to do my budget and savings calculations. See whether I can achieve even less than £150,000. 5 years is a lot to play with :D I'm so excited.

    Been reading lots of diaries at the moment too and its been really inspiring.
  • Nichelette
    Nichelette Posts: 2,090
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    I'm a bit late, but we used Atom in Horsham (think they are now called impact finance to differentiate from the bank). They were really good so I'll be going back to them when we re-mortgage. I know it's no use now but maybe keep them in mind for the future :).

    Our circumstances are pretty similar, albeit your mortgage is smaller :o so I'll try and pop in now and again.
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
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