Jump to content
House Price Crash Forum
AteMoose

Its Been 5 Years

Recommended Posts

So I bought my house 5 years ago at a discount (see sig), and I am being moved over to the cheaper SVR

My 5 years fixed rate is coming to an end, during those 5 years the hyperinflation that I half expected didn't materialize and I paid over the odds for the majority of the 5 years....

In those 5 years I saved another 40k which I plan to pay down the mortgage (would have been more but I had to buy a new car which ate into the savings :( )

The killer question, do I get another 5/10 year fixed or go variable? :o I'm tempted by an offset account (like the one account but I would go for a more competitive provider)

Edited by AteMoose

Share this post


Link to post
Share on other sites

So I bought my house 5 years ago at a discount (see sig), and I am being moved over to the cheaper SVR

My 5 years fixed rate is coming to an end, during those 5 years the hyperinflation that I half expected didn't materialize and I paid over the odds for the majority of the 5 years....

In those 5 years I saved another 40k which I plan to pay down the mortgage (would have been more but I had to buy a new car which ate into the savings :( )

The killer question, do I get another 5/10 year fixed or go variable? :o I'm tempted by an offset account (like the one account but I would go for a more competitive provider)

Maybe I'm over-cautious but I'd go a fix, with an offset option. I think there's a few out there.

Share this post


Link to post
Share on other sites

fix it for as low and as long as you can ....that what I would do ..

interesting what the general sez though .....

Share this post


Link to post
Share on other sites

I think at 3.64% it's tough not to take a 5yr fix. Even on a tracker you're looking at ~2.5%. If you have 100k left on the mortgage that's just over £1,000 a year cost on being able to sleep easier at night, and that's with rates not even rising. If rates rise by 2% in 2016 you've pretty much wiped out all the savings you made.

I'm assuming you have less than 100k left on the mortgage - in which case the extra 1% or so on the 5yr fix is even less cost to you. Personally I prefer to pay for the worry-free nights near BoE decision making time.

However IR swap rates are falling. Pending immediate eurozone/us debt ceiling concerns I'd stay on the SVR until you spot it rising.

Share this post


Link to post
Share on other sites

Monster post from the general!

All I'll say is stay on the SVR for the tome being, when IR look to be going up (18months from now??) then book urself a nice fixed rate.

If u plan on offsetting, this is a tax efficient way of saving, but IRs on the mortgage tend to be higher and you could be tied in for at least 2 years and IR might be on there way up by then, missing the window for a nice 5yr fix.

Share this post


Link to post
Share on other sites

I have 12 years left to go, and 2 years before my 5 yr fixed rate finishes. This is my 3rd 5 yr fixed rate and all I've ever done. It was pure luck that I got a home just before the boom.

It's not great, 6.19%, which was OK at the time, and I'm watching IR on fixed rates dropping to under 4% now for my LTV (33%) but the actual money saved barely makes my changing over worthwhile (it's a pretty small mortgage and once you add on the fees etc I might as well stay put).

The exit fees are a bitch and I resent having to pay for them, and the 'arragement fee' for the better IR on top just mean lumping more money over to these thieves.

Hate giving my money away to them, but they lent me it back in the day and enabled me to buy my own place rahter than give rent over to a BTL'er and basically pay their mortgage off for them.

I have a separate fixed rate mortgage of £25k (for IVF treatment) that finishes Jan 2012, on 3.99% which they have as a separate mortgage. I plan to leave that @ SVR until it comes to renew the 5 yr, then lump them into one mortgage. Sneaky ****ers want me to pay fees for each separately.

So I'm hoping IR stays low for the rest of the year, and remains so unitl 06 2012 when the main fixed exit fee drops another 1%. I'll then combine both of them for 1 fee and get a fixed rate to term. Although not that great, a 10 yr fixed means no more of this 'fees' bollokcs going down the drain, and as the fee is quite a significant % of the total mortgage, it matters.

I'm glad I haven't knuckled down and paid off the mortgage early, and glad I didn't save much. If I get made redundant, the state (which i've paid a LOT into) will pay for everything for me, rather than penalise me for saving, or penalise me for not trying to pay off my debt on my house - they'll just do it for me.

they really REALLY do nothing to reward working hard to clear debts. Shit saving IR, a comprehensive safety net on home owners that become jobless, and low IR on debts means the longer it takes, the better off I am.

Unbelievable really.

Share this post


Link to post
Share on other sites

I've got an offset mortgage with the One Account - we pay 3.65% on the debt but get 3.65% tax free on the savings.

It is a very good way of saving, particularly if you have any non-PAYE income as you can offset it against your mortgage before you have to pay tax.

By doing this we are living mortgage/rent free with £100k of instantly accessible cash if we need it.

Share this post


Link to post
Share on other sites

I have 12 years left to go, and 2 years before my 5 yr fixed rate finishes. This is my 3rd 5 yr fixed rate and all I've ever done. It was pure luck that I got a home just before the boom.

It's not great, 6.19%, which was OK at the time, and I'm watching IR on fixed rates dropping to under 4% now for my LTV (33%) but the actual money saved barely makes my changing over worthwhile (it's a pretty small mortgage and once you add on the fees etc I might as well stay put).

The exit fees are a bitch and I resent having to pay for them, and the 'arragement fee' for the better IR on top just mean lumping more money over to these thieves.

Hate giving my money away to them, but they lent me it back in the day and enabled me to buy my own place rahter than give rent over to a BTL'er and basically pay their mortgage off for them.

I have a separate fixed rate mortgage of £25k (for IVF treatment) that finishes Jan 2012, on 3.99% which they have as a separate mortgage. I plan to leave that @ SVR until it comes to renew the 5 yr, then lump them into one mortgage. Sneaky ****ers want me to pay fees for each separately.

So I'm hoping IR stays low for the rest of the year, and remains so unitl 06 2012 when the main fixed exit fee drops another 1%. I'll then combine both of them for 1 fee and get a fixed rate to term. Although not that great, a 10 yr fixed means no more of this 'fees' bollokcs going down the drain, and as the fee is quite a significant % of the total mortgage, it matters.

I'm glad I haven't knuckled down and paid off the mortgage early, and glad I didn't save much. If I get made redundant, the state (which i've paid a LOT into) will pay for everything for me, rather than penalise me for saving, or penalise me for not trying to pay off my debt on my house - they'll just do it for me.

they really REALLY do nothing to reward working hard to clear debts. Shit saving IR, a comprehensive safety net on home owners that become jobless, and low IR on debts means the longer it takes, the better off I am.

Unbelievable really.

And no one can blame you or legions in your position for thinking like this. I'd do the same in your shoes and feel justified in doing so.

Unfortunately this is a big part of the reason we are going down, down, down and there will be no recovery. Loose monetary policy will continue ad infinitum, sterling will continue its century long fiat nose dive and more wealth will be stolen from the people of Britain that actually still have a job or are still accumulating savings in a bank account.

Share this post


Link to post
Share on other sites
I'm glad I haven't knuckled down and paid off the mortgage early, and glad I didn't save much. If I get made redundant, the state (which i've paid a LOT into) will pay for everything for me, rather than penalise me for saving, or penalise me for not trying to pay off my debt on my house - they'll just do it for me.

One question?......if you keep your savings in gold rather than cash would it make a difference to the benefits you could claim.

On the subject of what mortgage to take, why not divide it 50-50 half the outstanding long term fixed, and the other half lowest discounted variable. ;)

Share this post


Link to post
Share on other sites

One question?......if you keep your savings in gold rather than cash would it make a difference to the benefits you could claim.

On the subject of what mortgage to take, why not divide it 50-50 half the outstanding long term fixed, and the other half lowest discounted variable. ;)

No idea TBH, never made a claim in my life. I imagine if it's physical gold, you'll not have to declare it.

Why 50-50? The number's we're talking about (£43k on the 6.19% until 6/2012, £23k until 01/2012) means it will not make much difference either way, especially when you have to pay exit fees, and arrangement fees, and all that shyt.

Half in one, and half in the other means doubleing up the fees, and as lenders want first-rights to teh security if it all goes wrong, you have to take both products out from the same lender.

Share this post


Link to post
Share on other sites

No idea TBH, never made a claim in my life. I imagine if it's physical gold, you'll not have to declare it.

Why 50-50? The number's we're talking about (£43k on the 6.19% until 6/2012, £23k until 01/2012) means it will not make much difference either way, especially when you have to pay exit fees, and arrangement fees, and all that shyt.

Half in one, and half in the other means doubleing up the fees, and as lenders want first-rights to teh security if it all goes wrong, you have to take both products out from the same lender.

No I have never claimed either....just wondering, I understand if you have over so much in savings you have to spend it before you can claim any benefits.

When you work out any rate you pay you have to take into consideration any fees, it can make a good rate turn into a poor rate......fixed rates are what they say.....a good variable rate allows you to repay lump sum payments at any time, a flexible rate, so by splitting you are hedging your bet.....but of course do the maths. ;)

Share this post


Link to post
Share on other sites

No I have never claimed either....just wondering, I understand if you have over so much in savings you have to spend it before you can claim any benefits.

When you work out any rate you pay you have to take into consideration any fees, it can make a good rate turn into a poor rate......fixed rates are what they say.....a good variable rate allows you to repay lump sum payments at any time, a flexible rate, so by splitting you are hedging your bet.....but of course do the maths. ;)

A house is fine as an asset. Anything over 16k in savings and no money for you. It's a sliding scale of benefit payments from there onwards.

Share this post


Link to post
Share on other sites

DEPENDS how much you are likely to save.

Some people will move heaven and earth to save a fiver..

As to which type to go to...toss a coin.

Share this post


Link to post
Share on other sites

So I bought my house 5 years ago at a discount (see sig), and I am being moved over to the cheaper SVR

My 5 years fixed rate is coming to an end, during those 5 years the hyperinflation that I half expected didn't materialize and I paid over the odds for the majority of the 5 years....

In those 5 years I saved another 40k which I plan to pay down the mortgage (would have been more but I had to buy a new car which ate into the savings :( )

The killer question, do I get another 5/10 year fixed or go variable? :o I'm tempted by an offset account (like the one account but I would go for a more competitive provider)

I had a 2 year fix at 3.72% (hardly fixed really given the short time scale) and will now be moving to 2.55% fixed, having £50k in cash to pay it down to about 50:50 LTV. and having paid off the other £40k on repayments.

Suddenly I'll be about £7k PA better off on what started as £540k mortgage. (Fortunately soon to reduce to £450k, that said I won't be truly happy until its down to about £250k.)

Share this post


Link to post
Share on other sites

My 5 years fixed rate is coming to an end, during those 5 years the hyperinflation that I half expected didn't materialize and I paid over the odds for the majority of the 5 years....

If you look at the last 25 years or so you see that people nearly always lose out on fixed fixed rates and thats by design of course - they are simply a way for lenders to pray on your fear to make more margin.

By taking a fixed rate you are essentially trying to outguess the lender on future IR trends. Good luck with that.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.