Site Supporter Winchester White Posted January 13, 2017 Site Supporter Share Posted January 13, 2017 My mortgage is up for renewal soon so have got my mate who is an IFA to look about for me. So, best deals available to me are cheaper than I am currently paying which is good but not sure to go for a 2yr, 3yr or 5yr. Obviously the 2yr is cheapest with the 3yr £28pm more and the 5yr another £30pm on top of the 3yr. Thinking that interest rates can't stay so low forever but the 2 and 5 year rates equate to 700 quid a year. Decisions decisions... Quote Link to comment Share on other sites More sharing options...
Site Supporter Tonge moor green jacket Posted January 13, 2017 Site Supporter Share Posted January 13, 2017 Can you make overpayments without penalties? If so, the shorter one would allow bigger overpayments which would reduce your debt and also repayments. You can continually review your options, but can't see interest rates going up massively anyhow. Brexit round the corner- are they going to rock the boat just yet? Quote Link to comment Share on other sites More sharing options...
Site Supporter Winchester White Posted January 13, 2017 Author Site Supporter Share Posted January 13, 2017 I can make 10% over payments without penalty. I like the idea of a fixed payment as it is just an amount going out each month and you forget about it. I know the best option is to pay as much as you can afford each month but let's be honest who really does that when you have a busy life and a family etc? Quote Link to comment Share on other sites More sharing options...
tomski Posted January 13, 2017 Share Posted January 13, 2017 I've just done 2. But we fancy moving then. It was a toss up of moving now or a couple more years then move. So suits us. Are you staying long term as I think the rates will be as low as they are going to get Quote Link to comment Share on other sites More sharing options...
Site Supporter Winchester White Posted January 13, 2017 Author Site Supporter Share Posted January 13, 2017 Yes we will be staying put for a good number of years tomski. Part of me thinks get the good rate for 2 years and see how it is then but another part of me thinks 5 years fixed might work out good if intrest rates go up in the next year or so. Quote Link to comment Share on other sites More sharing options...
tomski Posted January 13, 2017 Share Posted January 13, 2017 It's a not an easy time to predict is it? With all that's going on. Quote Link to comment Share on other sites More sharing options...
mickbrown Posted January 13, 2017 Share Posted January 13, 2017 When some clever bugger has worked it all out, stick it here. I'm in the same boat. Quote Link to comment Share on other sites More sharing options...
Salford Trotter Posted January 13, 2017 Share Posted January 13, 2017 If you are thinking of moving at some point you should check if your motgage is portable as you can transfer it to your new property and all you do is refinance the difference. Your IFA should advise you of that. Quote Link to comment Share on other sites More sharing options...
Exiled Girl Posted January 13, 2017 Share Posted January 13, 2017 We went for 5 years as we'll have paid off a lot of it by then by overpaying & only have around 3 years to think about. The other part of the mortgage is a lifetime tracker so we've left that as it is. Quote Link to comment Share on other sites More sharing options...
Site Supporter Tonge moor green jacket Posted January 13, 2017 Site Supporter Share Posted January 13, 2017 I can make 10% over payments without penalty. I like the idea of a fixed payment as it is just an amount going out each month and you forget about it. I know the best option is to pay as much as you can afford each month but let's be honest who really does that when you have a busy life and a family etc? We've always overpaid as much as possible; its done by standing order so can alter it easily on the internet if you're having a tight month. By paying as much as I can, you know what's left and live within it. Had to make sacrifices but now paid over 40,000 of it by overpaying. Long term this will massively reduce overall amount paid back. Will reap the benefits in around five years when its all gone. If interest rates are higher then, then saving a little will be better. Quote Link to comment Share on other sites More sharing options...
Site Supporter Tonge moor green jacket Posted January 13, 2017 Site Supporter Share Posted January 13, 2017 The other thing- dunno how old your kids are but they get mor expensive as they get older. Overpaying as much as you can early doors can help. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 13, 2017 Share Posted January 13, 2017 Lock in for 5 years Much less downside Quote Link to comment Share on other sites More sharing options...
Site Supporter Tonge moor green jacket Posted January 13, 2017 Site Supporter Share Posted January 13, 2017 Lock in for 5 years Much less downside Do you see rate rises in this time frame? Im talking from my own experience but would consider a fixed one if I felt rates were going to go up a fair bit. I've looked occasionally, but on balance sticking with my base rate + two percent, and freedom to overpay what I want has been good. Particularly with being self employed, monthly take obviously varies so the ability to adjust has been great. Quote Link to comment Share on other sites More sharing options...
Sweep Posted January 13, 2017 Share Posted January 13, 2017 We went for 5 years as we'll have paid off a lot of it by then by overpaying & only have around 3 years to think about. The other part of the mortgage is a lifetime tracker so we've left that as it is. We've just done the same, plumped for a fixed 5 years deal at 1.99% (which oddly, is actually 5yrs and 3 months) - we've only got 7 years left on the mortgage, so we're going to make overpayments and hopefully be left with very little once the 5 years is up We have made sure that the mortgage is portable, just in case we decide that we do want to move, we've no plans to, but who knows what might happen Quote Link to comment Share on other sites More sharing options...
Moderators Casino Posted January 13, 2017 Moderators Share Posted January 13, 2017 Got about 9k left on ours Might pay most of it off, just to be mortgage free Quote Link to comment Share on other sites More sharing options...
bgoefc Posted January 13, 2017 Share Posted January 13, 2017 Got about 9k left on ours Might pay most of it off, just to be mortgage free Been mortgage free for 11 years now. Best thing I ever did as I spunked most of my money enjoying myself. Being debt free gives a person a different outlook on life. Quote Link to comment Share on other sites More sharing options...
Sweep Posted January 13, 2017 Share Posted January 13, 2017 Got about 9k left on ours I'd personally look at getting that paid off, I can't wait to be mortgage free.....sadly I've still a six figure sum left on mine Quote Link to comment Share on other sites More sharing options...
Site Supporter Winchester White Posted January 13, 2017 Author Site Supporter Share Posted January 13, 2017 Having spoke to my mate, we are going for the 2 year fix. Things are a little tight at the moment till the wife goes back to work later on this year so it made sense for us. Fingers crossed interest rates will stay fairly steady for a couple of years then I can get a decent enough longer fix next time. If not, c'est la vie, no one has a crystal ball. Quote Link to comment Share on other sites More sharing options...
Sweep Posted January 13, 2017 Share Posted January 13, 2017 Been mortgage free for 11 years now. Best thing I ever did as I spunked most of my money enjoying myself. Being debt free gives a person a different outlook on life. I'm sure it does. I had a meeting with our pensions bloke the other day, he told me to pay as little as I can on my mortgage, and shove as much as I can into my pension (as I get 40% tax relief) - on paper, what he was saying made sense......but I told him to fuck off, as I'd rather get my mortgage down as soon as possible. He thought that I was nuts Quote Link to comment Share on other sites More sharing options...
Site Supporter Tonge moor green jacket Posted January 13, 2017 Site Supporter Share Posted January 13, 2017 I'm sure it does. I had a meeting with our pensions bloke the other day, he told me to pay as little as I can on my mortgage, and shove as much as I can into my pension (as I get 40% tax relief) - on paper, what he was saying made sense......but I told him to fuck off, as I'd rather get my mortgage down as soon as possible. He thought that I was nuts Can see where he's coming from, though depends if rates increase dramatically then it could bite you. Does your missus work out of interest? Quote Link to comment Share on other sites More sharing options...
Salford Trotter Posted January 13, 2017 Share Posted January 13, 2017 I'm sure it does. I had a meeting with our pensions bloke the other day, he told me to pay as little as I can on my mortgage, and shove as much as I can into my pension (as I get 40% tax relief) - on paper, what he was saying made sense......but I told him to fuck off, as I'd rather get my mortgage down as soon as possible. He thought that I was nuts I have to agree with your pensions man and it's exactly what i do now, where else could you get a return like that? You can put in a maximum of £40k pa as long as you are left with the minimum wage. Quote Link to comment Share on other sites More sharing options...
Sweep Posted January 13, 2017 Share Posted January 13, 2017 Can see where he's coming from, though depends if rates increase dramatically then it could bite you. Does your missus work out of interest? Yes, the Mrs does work I have to agree with your pensions man and it's exactly what i do now, where else could you get a return like that? You can put in a maximum of £40k pa as long as you are left with the minimum wage. I don't disagree with my advisor, it does make sense. However, whilst I still owe over £100K on the house, I'd much rather get that down, especially as I might not even reach pension age. I should have it all paid off well before I'm 50, then I can start chucking into my pension....or that's the plan. Being mortgage free by 50 has always been my aim. Quote Link to comment Share on other sites More sharing options...
Moderators Carlos Posted January 13, 2017 Moderators Share Posted January 13, 2017 I'd have paid mine off if I didn't move and add 25K to the mortgage, without that I'd fuck off work entirely. A modest mortgage keeps me going. Quote Link to comment Share on other sites More sharing options...
birch-chorley Posted January 13, 2017 Share Posted January 13, 2017 Depends how big your mortgage is and how long you will be paying it off for. I'm in the market for a 'forever' home to raise a family in so want as much security as possible in my monthly payment With that in mind Barclays and HSBC have some good 10 year fixed rate mortgages The rates were between 2.6% & 3% deposit dependant but they have just increased a little, still decent though for a decade (you can transfer onto another property during the term without a penalty) I was approved one at the old rate but it's just expired, trying to find a new house but the markets completely bonkers so I'm having to wait Quote Link to comment Share on other sites More sharing options...
Guest Posted January 13, 2017 Share Posted January 13, 2017 Do you see rate rises in this time frame? Im talking from my own experience but would consider a fixed one if I felt rates were going to go up a fair bit. I've looked occasionally, but on balance sticking with my base rate + two percent, and freedom to overpay what I want has been good. Particularly with being self employed, monthly take obviously varies so the ability to adjust has been great. More about managing the risk, really If rates stay low, then overpay if you can, reducing the term and reducing the potential for massive rises later on No objection to 10 years either These are great times to kill mortgages Quote Link to comment Share on other sites More sharing options...
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