guitarman001 Posted October 31, 2011 Share Posted October 31, 2011 (edited) Heard a mate of mine's friend say that he had been overpaying his mortgage the last 2 years... total payment per month now up to £500. And he bought in 2002 for cheap! I can't understand this (i.e. still not paid off)...!? Some people! My NORMAL payments if I HAD a mortgage now would be sky-high compared to that! Edited October 31, 2011 by guitarman001 Quote Link to comment Share on other sites More sharing options...
wheelerfish Posted October 31, 2011 Share Posted October 31, 2011 Heard a mate of mine's friend say that he had been overpaying his mortgage the last 2 years... total payment per month now up to £500. And he bought in 2002 for cheap! I can't understand this (i.e. still not paid off)...!? Some people! My NORMAL payments if I HAD a mortgage now would be sky-high compared to that! And? That seems sencible to pay down your mortgage. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 31, 2011 Share Posted October 31, 2011 Heard a mate of mine's friend say that he had been overpaying his mortgage the last 2 years... total payment per month now up to £500. And he bought in 2002 for cheap! I can't understand this (i.e. still not paid off)...!? Some people! My NORMAL payments if I HAD a mortgage now would be sky-high compared to that! That's our savings he using to pay back his mortgage with. F**king corrupt system. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted October 31, 2011 Share Posted October 31, 2011 That's our savings he using to pay back his mortgage with. F**king corrupt system. Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. There are plenty of vehicles with which to earn more than the current savings rates (not sure why you have an entitlement to have a savings rate linked to inflation) the best of which is probably your own enterprise. So they are not 'your' savings or mine are they ? Quote Link to comment Share on other sites More sharing options...
Mr P Posted October 31, 2011 Share Posted October 31, 2011 Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. There are plenty of vehicles with which to earn more than the current savings rates (not sure why you have an entitlement to have a savings rate linked to inflation) the best of which is probably your own enterprise. So they are not 'your' savings or mine are they ? I;v followed your posts for a while now.I'v come to the conclussion you are a touch arrogant and you post on the wrong site.... i maybe wrong but i don't think so. Quote Link to comment Share on other sites More sharing options...
catmandu Posted October 31, 2011 Share Posted October 31, 2011 What is it we're supposed to get outraged by? He's overpaying his mortgage which seems sensible. You don't give any info about the size of his mortgage, the term of it, or about how much he earns in comparison to his mortgage payments? Are you just trying to wind people up? Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted October 31, 2011 Share Posted October 31, 2011 (edited) I;v followed your posts for a while now.I'v come to the conclussion you are a touch arrogant and you post on the wrong site.... i maybe wrong but i don't think so. I think your initial summing up is probably spot on just the wrong side of confidence in truth, but if you try it not a totally ineffective strategy in chaotic times. As for the wrong site, it's a free world and you will find many alternative views on here boomer v youngster , home owner v can't get on the ladder, private v state education. I have learnt a lot from people posting on here obviously not from the post above what is there to learn from a statement and a pat on the back? If you think this site is full of people: 1. Who want a HPC 2. Who don't cover other subjects 3. Who only post Mumsnet style hugzz Then I guess you are on the wrong site in fact they would love you on MSE or Mumsnet I keep getting slung off anyway how long is a while with 59 posts ?! Edited October 31, 2011 by Greg Bowman Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted November 1, 2011 Author Share Posted November 1, 2011 Come on - my point is that somebody who bought for ~£60k around 2002 (approx value), they really should have been overpaying and had it done by now anyway. Nowadays I'd be paying £180k for the same and would have no chance! Quote Link to comment Share on other sites More sharing options...
Downside Posted November 1, 2011 Share Posted November 1, 2011 (edited) Not everyone sees the a mortgage as something that needs to be paid down asap and everything else needs to be given up to service it. Some people probably just like having the choice of either over paying or just spending the extra on themselves. Yea it makes more sense to over pay and clear the debt asap but you can't blame them if they feel like enjoying the extra cash and just paying the normal monthly payments. For all you know he might now only be in a position to over pay where as before he may have had other things that needed paying down such as CC debt or car loans Edited November 1, 2011 by Downside Quote Link to comment Share on other sites More sharing options...
blackgoose Posted November 1, 2011 Share Posted November 1, 2011 Yes it is lucky for them that they bought for cheap in 2002 and I would have loved to do the same. However, this person is being sensible by overpaying the mortgage. Compare that to the MEW brigade who end up in negative equity, driving around in big 4 by 4s and moaning about the 'slow' housing market. Quote Link to comment Share on other sites More sharing options...
righttoleech Posted November 1, 2011 Share Posted November 1, 2011 Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. There are plenty of vehicles with which to earn more than the current savings rates (not sure why you have an entitlement to have a savings rate linked to inflation) the best of which is probably your own enterprise. So they are not 'your' savings or mine are they ? I am with The Count on this one. One of the reasons your friend can overpay is the subsidy from savers who are being robbed by inflation AND paying income tax on their depreciating capital.......and since he bought cheap it's a win double for him. Quote Link to comment Share on other sites More sharing options...
catmandu Posted November 1, 2011 Share Posted November 1, 2011 Come on - my point is that somebody who bought for ~£60k around 2002 (approx value), they really should have been overpaying and had it done by now anyway. Nowadays I'd be paying £180k for the same and would have no chance! Can you explain why this should be the case. It seems harsh to expect people to pay off their mortgage within 10 years. Perhaps this person has a low pay job and many kids and finds it difficult to pay off so much. Perhaps they prioritise other things like holidays or cars. As long as they are paying it off, I don't have a problem with them. Being obsessed with property, us HPCers probably would pay it off much earlier, but I'm not going to criticise someone whose circumstances you haven't fully explained. Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted November 1, 2011 Author Share Posted November 1, 2011 (edited) Single with income > £40k. That's all I'm saying - has plenty of money, believe you me. If it were me, I'd have had the thing paid off yonks ago. Edited November 1, 2011 by guitarman001 Quote Link to comment Share on other sites More sharing options...
catmandu Posted November 2, 2011 Share Posted November 2, 2011 Single with income > £40k. That's all I'm saying - has plenty of money, believe you me. If it were me, I'd have had the thing paid off yonks ago. Yep, with that kind of salary it would generally make financial sense to pay it off early. Maybe though he is planning to rent it out and buy another one, in which case it would make sense to keep the mortgage on the property for tax reasons and to allow a bigger deposit on the next purchase. Just saying.... Quote Link to comment Share on other sites More sharing options...
exiges Posted November 2, 2011 Share Posted November 2, 2011 Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. So they are not 'your' savings or mine are they ? I guess you're being wilfully obtuse. The point The Count is making, which I'm sure you're aware of, is that with normal interest rates the subject of the post wouldn't be making overpayment because he'd be paying interest rather than capital, and people who had savings would be able to make overpayments due to their better return. Rates are such to bail out the over-extended at the cost of the prudent. Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted November 7, 2011 Share Posted November 7, 2011 Single with income > £40k. That's all I'm saying - has plenty of money, believe you me. If it were me, I'd have had the thing paid off yonks ago. Why do that? In my case the bank lends me STR's savings at 2% for my BTL. I lend mine out on ZOPA getting >5% annual return Quote Link to comment Share on other sites More sharing options...
the stig Posted November 17, 2011 Share Posted November 17, 2011 Why do that? In my case the bank lends me STR's savings at 2% for my BTL. I lend mine out on ZOPA getting >5% annual return Obviously you're including the returns on your income tax form aren't you? Quote Link to comment Share on other sites More sharing options...
Rozza Posted November 17, 2011 Share Posted November 17, 2011 Obviously you're including the returns on your income tax form aren't you? Ha ha ha! Most BTL people i speak to dont even know they can only pay off the interest on their mortgage with rent and should be paying the tax on the difference, and the one who does know this doesnt seem to care. I hope someone in govt decides this is a mega easy way of collecting a LOAD of back owed tax (the figures must be huge) and comes down hard on all the BTL tax evaders Quote Link to comment Share on other sites More sharing options...
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