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Twilkes

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About Twilkes

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    HPC Newbie
  1. 50% is in the SWIP FTSE All Share tracker, charges are 0.05% and £2 per month, works out at about 1% per annum at the moment, less once the fund grows. Seems reasonable to me? The other 50% is in Marlborough Special Situations, fees are 1.35% per annum. The money’s not been in long, and the fund has been doing well the last couple of years but I realise there will be falls in the future. Will keep an eye on it, and when it’s above a certain gain e.g. 15% of when I put the money in, I’ll bank some of it into the tracker and carry on with the remaining funds. That way, I might miss out on higher gains, but I’ll also be less likely to lose higher sums too. Slanj,
  2. 30 years, so no rush. It's more about not wasting any gains significantly above the market gain, because these funds tend to fluctuate a lot more. If I was playing roulette, and I put £10 on #12 and it came in, I wouldn't then put all of the gains back on #12, I'd put a lot of it back into the 'cautious pile'. Or spend it on bacon.
  3. I have some pension investment split into two strands, one is a FTSE tracker, the other is a more adventurous fund which has been going up over the last year. I realise that these things don't go up forever, so I'm wondering at what point I should take out some of these gains and put them in a 'safer' fund, if at all? E.g. if I started with £5k in this fund, and at some point it doubled to £10k, should I take the £5k gains and put it in the FTSE tracker, and start again with the original £5k in another adventurous fund?
  4. Thanks for that - I think the risk of interest rates rising, the property value falling or us wanting to move away within the 5 years outweigh any benefits we could get. It's in Perth, which although it was named Scotland's newest city it's kind of an extinct volcano of a place, hence the prices. Although a £50k flat would be a shoebox.
  5. We are renting a flat in a second location due to our jobs not being near our own flat - rent is £400 a month. It's very likely we will be there for the medium-term, and we could buy a flat for £50k which we could pay off in 5 years at £550 a month. So only £150 a month extra and in 5 years we would own a small flat outright. What are the financial pros and cons of doing this? It would take all of our savings initially, but in a year they'd be looking pretty healthy again, and there would even be scope for overpayment if interest rates started rising. Cheers,
  6. This might be a stupid question, but if someone took out a £200k mortgage on a house, had paid off £100k of it by the time they got into financial difficulty and the bank repossessed the house, and the bank then sold it for £150k at auction, would the individual get the £50k difference? Or if your house gets repossessed, that's it, game over, no matter the difference between the house value and the amount outstanding?
  7. Yep, it allows overpayments, that's how the interest has come down to £34 on the £20k at about 1.5% (roughly, I think). We'll probably keep hold of the cash so we can be more flexible, and can always put in a lump sum at a later date if the interest rate starts creeping up. Cheers,
  8. It's an interest-only mortgage, but we've been overpaying and thus treating it as a repayment mortgage - e.g. once we have paid that £20K we will own the flat with no debts. So I guess my question is, is it better to own a property outright when moving/re-mortgaging to buy a second, or better to have cash in the bank and a small mortgage left on the first property? There might not be much between them financially, but logistically is one option easier than the other?
  9. Hi there, just a quickie. We have a flat that was bought around 7 years ago for £53k, and now have around £20k left on the mortgage (interest only), and are charged about £34 in interest per month. We make regular monthly overpayments, and are wondering whether to make the one-off £5k overpayment in January that our mortgage rules allow. It would be possible for us to clear the mortgage in two years, but at about that time we may be looking to either move, or remortgage and buy a second flat (we both weekend-commute and are currently renting in the second town). Would it be best to clear the mortgage and start afresh if the move/second purchase happened, or have the cash in an ISA to use as a cash deposit? Would we be likely to get a second mortgage without clearing the first, if the total is within our affordability/income multiple? Cheers for any help, Tony
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