Current Affairs Mortgages

[Martin Alvito]

Can be 'clever', pay it off to the final £2 then its a penny a month thereafter. Theres ways to use their system.

Usually the way those work (at least over here) is that if you pay it in advance more than a certain amount (usually a percentage of the initial loan amount) a one-time penalty is assessed that cannot be re-assessed if you make another large payment. This makes them impossible to end-run and difficult to manipulate.

 

[john jako]

Usually the way those work (at least over here) is that if you pay it in advance more than a certain amount (usually a percentage of the initial loan amount) a one-time penalty is assessed that cannot be re-assessed if you make another large payment. This makes them impossible to end-run and difficult to manipulate.

I think most over here you can pay 10% of the loan a year. Anything extra is a penalty.

 

[Martin Alvito]

I think most over here you can pay 10% of the loan a year. Anything extra is a penalty.

That's interestingly more, and less, lenient all at the same time. Most of the ones I ran across over the years were in the neighborhood of 5% paid below the schedule, with a penalty of 2-3% of the balance or initial loan amount, one-time only.

 

[Marius57]

Thankfully I imagine we'll see a reduction in woke nonsense now Sir Keir is steering the Labour ship.

Although him taking the knee to appease BLM protesters still leaves a sour taste in my mouth.

Cam you explain your definition of woke please. Just interested.

 

[Del-boy]

Bad news all round really. Can see massive issues going forward if this isn’t sorted soon.

Seen comparisons to the housing crash in 2008 particularly in America which was much worse in terms of repossessions than the UK.

However mortgages in the US and the UK work slightly differently. The real issue will be negative equity. If the houses market crashes peoples homes could be worth less than the amount of debt you have. In the US this wasn’t an issue as you just hand over the keys to the bank and that’s the end of the matter. However over here you will still owe the bank outstanding amount. This will be thousands, in some cases tens of thousands. People will end up trapped in homes they can’t afford to live in and can’t afford to sell either.

Loads of first time buyers getting massive mortgages with help to buy for 250k houses, whilst having two cars on the drive on pcp.
A lot of people could be in real trouble.

 

[Yarrgh]

oh yea, the good Friday agreement to protect, and support for Ukraine to continue to find and fund. Free 'holidays' to Rwanda to deliver, theres got to be more, the ante is only so crushing at the moment...

Northern Ireland? Perhaps the Republic would like to support that.

Ukraine? Referendums you say? No need to support anymore you say?

Rwandan holidays? 2 one way trips on the last flight for Truss and Kwarteng.

Now pull the plug and we'll do an Atlantis.

 

[Yarrgh]

Got to love those outer London house prices.

We currently pay £2050 a month. I’m extremely lucky with my wife and I’s combined income but £2600 would be pretty scary.

I know people who live in central London who have 30 year mortgages where nearly 60% of their payment is interest.

There’s going to be a lot of red faced YouTube financial advisors who have been telling people for years not to repay their mortgages early because it’s low interest debt. People will be totally screwed.

They will change their spiel overnight and pull their hair out about not paying loans off early.

 

[Yarrgh]

Bad news all round really. Can see massive issues going forward if this isn’t sorted soon.

Seen comparisons to the housing crash in 2008 particularly in America which was much worse in terms of repossessions than the UK.

However mortgages in the US and the UK work slightly differently. The real issue will be negative equity. If the houses market crashes peoples homes could be worth less than the amount of debt you have. In the US this wasn’t an issue as you just hand over the keys to the bank and that’s the end of the matter. However over here you will still owe the bank outstanding amount. This will be thousands, in some cases tens of thousands. People will end up trapped in homes they can’t afford to live in and can’t afford to sell either.

Loads of first time buyers getting massive mortgages with help to buy for 250k houses, whilst having two cars on the drive on pcp.
A lot of people could be in real trouble.

A few years back I remember listening to the radio and the expert was saying 9 in 10 cars are on finance at any one time. If a car is over 10 years old is probably the only one guaranteed to not be on some sort of finance due to second hand car trade etc.

If that's true, there's a lot of money being poured down the drain on my street that people can ill afford.

 

[Yarrgh]

I think most over here you can pay 10% of the loan a year. Anything extra is a penalty.

I'm on interest only and have no penalties for over or early repayment. The range of mortgage products out in the wild is insane.

I'm on a variable rate so can see the direct rise as the interest rate goes up. Time to start scrimping on trying to keep up paying it down.

 

[PhilM]

That's interestingly more, and less, lenient all at the same time. Most of the ones I ran across over the years were in the neighborhood of 5% paid below the schedule, with a penalty of 2-3% of the balance or initial loan amount, one-time only.

In the UK, it is typically 10% of the outstanding balance of your mortgage, or it has been on this and our previous two mortgages.

When we moved house, we had a handful of months on our mortgage and to settle and move cost us an extra £3k as my bank's rates weren't great.

We moved to another provider and took the hit! On terms of rates, my mortgage will rise by £320 a month if the rates increase to 5.5% as some predict.

Fortunately, it's affordable for us as a family, although it will mean we either don't save anywhere near as much or cut back on day to day things.

 

[edge]

Well, ive done some math, I worked out I could get a loan for the total of what we owe on the mortgage, 7 years, it would be double what we pay now, but we currently have 17 years left.

Seems disgustingly risky, but I just dont know what to do.........

I payed off a small mortgage the other year , only had three years left and about £8.500 left on it, cost me about £800 extra to finish it off.
Still worked out cheaper than carrying on the payments, my daughter, keeps saying she will buy it off me, lives rent free , but that's not going to happen now.

 

[Lobster Johnson]

Yeah, was just sitting here thinking of the things that will be shed in this new dawn.

900 quid on Everton a year was very high on the list.

Well, every cloud...

 

[NilSatisOptimum]

The current deal was not to expire until late October, but you have 6 months to hold on any mortgage deal. So fixed ours for seven years on the eve of Truss being Ordained, was every chance the economic rule book would be thrown to the wind with Britannia unchained lot in full charge. "Know your enemy".

 

[Bruce Wayne]

I payed off a small mortgage the other year , only had three years left and about £8.500 left on it, cost me about £800 extra to finish it off.
Still worked out cheaper than carrying on the payments, my daughter, keeps saying she will buy it off me, lives rent free , but that's not going to happen now.

Paying off mortgages, £900k pensions. You is loaded mate

 

[Bruce Wayne]