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libitina

Which Mortgage?

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When the time to bite the bullet finally arrives, which is the best type of mortgage to go for? (obviously not an IO mortgage)

Are offset mortgages good value? What about tracker ones?

We would have about a 90% mortgage of hopefully less than £120k over approx 23 or 24 years (depending on when prices become affordable)

Once I have finished uni in 3 years we would hopefully be over paying the mortgage too...

I don't need a particular mortgage broker recommending as such, but you know the tv add with the 'cracker jacker tracker' mortgage? Well, thats how I feel. :ph34r:

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go to the fsa website and type in the criteria that suit you e.g. if you might want to make overpayments or if you might want no redemption penalties - see what it returns you

go to the fsa website and type in the criteria that suit you e.g. if you might want to make overpayments or if you might want no redemption penalties - see what it returns you

p.s. i am told by someone who has worked on an offset mortgage that the majority of people never pay off any of the debt but use it as a bloody great overdraft facility which is how the lender makes money on it

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go to the fsa website and type in the criteria that suit you e.g. if you might want to make overpayments or if you might want no redemption penalties - see what it returns you

go to the fsa website and type in the criteria that suit you e.g. if you might want to make overpayments or if you might want no redemption penalties - see what it returns you

p.s. i am told by someone who has worked on an offset mortgage that the majority of people never pay off any of the debt but use it as a bloody great overdraft facility which is how the lender makes money on it

Thanks.

We don't go over drawn so hopefully that wouldn't be a problem.

I just worry that the broker will try to push the mortgage thats the most lucrative for them. I'll go look at the fsa site.

http://www.fsa.gov.uk/consumer/07_MORTGAGE...which_rate.html

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from what he was saying it was generally a question of ill discipline e.g you start witha £150k mortgage which is effectively your low rate overdraft - you know off £10k from savings - now with a conventional mortage you would then pay e.g. £1k per month which you had to meet - with this type you can effectively say "well, we could give it a miss just this month and have that new luxury bed we liked" etc. - worse still you could say "actually, that kichen is only £10k and we will still be under our £150k limit" etc. - my understanding is that that was how many people were treating it

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p.s. i am told by someone who has worked on an offset mortgage that the majority of people never pay off any of the debt but use it as a bloody great overdraft facility which is how the lender makes money on it

As an OO that would welcome a crash as it makes my next upward move cheaper, my choice when remortgaging a few years ago, was an offset. I never have overdrafts or debts, other than the mortgage.

The interest rates are slightly less competitive, but there's generally no redemption penalties or fiddling small print. You can overpay anytime, though there's no real need to, as your cash is hard at work the day it hits your current account. My monthly statement lists the interest saved for every single day of the month, which can then go to the repayment - a nice morale boost, too.

Noting the quote above, I am, however, absolutely disciplined with it and it's saved me loads. In addition, for anyone earning in the 40% tax bracket, it's a no-brainer.

TLM

Edited by trompe le monde

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  • 301 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%



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