Any finance/mortgage gen?

Basically after some advice and can't find out the answer directly on google etc...

I am looking to plough as much money into my morgagtes as possible to get them paid off, both of the current deals have expired so I'm free to switch, but with how my work is I don't want to over commit to something I can afford now if my circumstances change so my questions on a repayment morgatge can I overpay, say took a deal paying £5-600 a month but pay £2-3k off it instead?

rough online calculator says for a 5 year deal it's £1600 a month on one and £2300 on the other obviously I couldn't afford both like that so hence why I just want to be able to pay as much as I can afford?

check out your mortgages.. there are a lot of them that have a certain day each year when you can actually pay off a chunk of the capital, which will pay the mortgage of quicker... i'm not really massively clued up on this but, basically, if you pay off a grand to the capital, its worth about the same as paying 4 grand off the mortgage.

so the trick is to save a chunk & then on the changeover day pay it against the capital. thus your monthly payments will go down, then the next year, do the same & it goes down even more etc until you have paid it off

Maybe look into a One Account, is what the parents have, anything in your current/savings/mortgage account (sure you can work that out from the name) counts against your mortgage, so basically if you have a 100k mortgage and 20k in savings, it counts it and charges interest like, an 80k mortgage. Only downside is you only ever get ATM receipts that say you have -£80k to your name lol

My last 2 deals have allowed me to pay upto 10% of the total loan in a 1 off payment in a 12 month period,

ATM I'm on an interest only paying only £202 per month and ofcourse that will never pay of the capital so I just make a large payment once a year to bring down the capital, then the interest is recalculated for the following 12 months and I pay less.

You say your current deals have expired so I assume you have gone on to your bank/building society standard variable rate for the time being? If so, you may still be restricted to the amount of overpayments you can make each year.

Yeah that's right Jim but I want to take out new deals with them or a n other. Was tempted to take out a 5 yr deal and pay one off entirely but that's a massive commitment!

I don't know what current deals are around, but I'd be wary of going on to a fixed deal for 5 years given that the interest rates are so low. You may find it more financially beneficial to stay with the standard variable rate and make as much in overpayments as your provider will allow. Might be best to speak to a professional? I can highly recommend the advisor that I've been dealing with. PM me if you would like his details.

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Originally Posted by Jim

I don't know what current deals are around, but I'd be wary of going on to a fixed deal for 5 years given that the interest rates are so low. You may find it more financially beneficial to stay with the standard variable rate and make as much in overpayments as your provider will allow. Might be best to speak to a professional? I can highly recommend the advisor that I've been dealing with. PM me if you would like his details.

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But then if you get a fixed deal at a good rate then its not so bad. The Simps might be worth speaking too, hasnt been on here for a while mind. Maybe doing some work on his WIP Nova..... He is in the mortgage/finance business IIRC.

we fixed just before the rates dropped, BUT looking around at options now it seems the rates have come back up again to a similar level so we dont feel so vexed lol.

Our fixed deal says we can overpay by 10% of the balance in a 12month rolling period, either in one off chunks or monthly but if its monthly the need 2 months notice on changing the payment figure :(

I did work out once that if you paid daily you'd save a feck load of interest lol but they wont let you do that :(

Check out first direct for mortgages Ben. Very competitive rates, low feels and most of the deals do not have a cap on overpayments. If your loan to value is good then you can get some good tracker deals too that have a cap - http://mortgages.firstdirect.com/specialoffers. I think they insist you open a current account with them to pay the mortgage but all you have to do is put a standing order into it from your normal account to cover it.

Who are you currently with and what SVR are you paying? If you're on the SVR there shouldnt be any problem overpaying whatever you want.

One of the properties is with Halifax and i owe £87k on approx £100-110k value. and is currently on intrest only but really want to change to capital and intrest,

The other is with Birmingham midshires and we owe £125k on a £150-160k property again on intrest only.

This is my current plan please feel free to point out any glaring flaws...

I want to keep the cheaper loan on intrest only as this is only £250 per month and this gives me more income to plow into the 125k loan at which i can afford approx £2k a month to pay off, but i dont want a £2k a month mortgage as if i am out of work thats a lump to find each month, whereas i can manage a £1-1200 a month even if out of work and then over pay the £1kish per month to clear this, aside from this, if i can manage to save up some cash to pay off some of the capital of the 87k loan on an intrest only deal is this possible?

If you're on the SVR with both the mortgages I cant see any reason why you cant set up a voluntary overpayment of whatever you like. If you want to keep the flexibility of being interest only then moving them to a new lender might be tricky as alot now dont like interest only mortgages and prefer repayment. Because of what loan to value you have on both mortgages I cant see you making that much of a saving on switching mortgages as opposed to staying on the SVRs you're currently on.

Have you contacted each lender to find out their overpayment arrangements?

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Originally Posted by Pistol Pete

But then if you get a fixed deal at a good rate then its not so bad. The Simps might be worth speaking too, hasnt been on here for a while mind. Maybe doing some work on his WIP Nova..... He is in the mortgage/finance business IIRC.

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Like I said, I don't know what deals are around at the moment. Last time I looked at switching deals I was offered a fixed for 5 years @ 5.09% which would not have been financially beneficial for me. I may live to regret this if interest rates increase massively though.

Thanks for all the replies and advice, Jim i found this article which was intresting reading... Clicky

If it were me, i would do short term fixed paying the extra 10% (that most give you the option to do), on both mortgages. All that you can afford, plough that into a savings account, end of the fixed term you have a wedge to plough in and pay it off in a lump. So if work should dry up, your sitting pretty with ya safety net, but if work is still doing well, plough it in secure another short term fixed and repeat.

Halifax will let you pay what you want when you want over and above your noraml payments. They will encourage you to keep the mortgage and invest in other areas...keeps thier books good but, if it is a plain capitol and interest there are no penalties for early payments.

I have done this with two properties, the first i was tied in for five years witha fixed rate, never again! I always go for capitol and interest only, allows you freedom to over/underpay depending on what is going on aat the time. Hope this helps

Right then just sorted both loans out, after speaking to both lenders they are both happy for me to switch immediately onto a repayment plan (infact were very pleased indeed) I have kept them on the current terms without signing into a deal for x amount of years, both deals are on the SVR + 1.99% so i am paying 2.49% intrest. And with both lenders there is no early repayment clauses and i can repay as much capital as often as i like and as much as i like.

Thanks for the advice guys.

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Originally Posted by Pistol Pete

But then if you get a fixed deal at a good rate then its not so bad. The Simps might be worth speaking too, hasnt been on here for a while mind. Maybe doing some work on his WIP Nova..... He is in the mortgage/finance business IIRC.

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Flol

love you really :gay: :p

You mean bank of england base rate, svr is what your lenders standard rate is, but know what you mean. Sounds like you done alright. I still personally would have kept it interest only but upped payments to the repayment level (as a minimum). You'll have one hell of a job now if you want to go back in the future.

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Originally Posted by Ben

Right then just sorted both loans out, after speaking to both lenders they are both happy for me to switch immediately onto a repayment plan (infact were very pleased indeed) I have kept them on the current terms without signing into a deal for x amount of years, both deals are on the SVR + 1.99% so i am paying 2.49% intrest. And with both lenders there is no early repayment clauses and i can repay as much capital as often as i like and as much as i like.

Thanks for the advice guys.

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Oh Mark - i have been working on it actually :p

Just realised i didnt reply to your text. I'm away all of september but maybe a mince in october could be arranged!

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Originally Posted by The Simps

Oh Mark - i have been working on it actually :p

Just realised i didnt reply to your text. I'm away all of september but maybe a mince in october could be arranged!

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That's because you're a massive homo, my phone has decided it doesn't do texting at the moment anyway, literally since the evening I got a girls number sat night, was working all afternoon. I have been cockblocked by the ******* thing lol

Let me know, I'll 'book' a day off and we can mince all weekend :thumb:

A girls number?! Seriously?! From all the pictures of topless guys on your bedroom wall i thought you were a fudge rider. No wait, sorry, i'm thinking of your sisters room! Lol

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Originally Posted by The Simps

A girls number?! Seriously?! From all the pictures of topless guys on your bedroom wall i thought you were a fudge rider. No wait, sorry, i'm thinking of your sisters room! Lol

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Hactual feminine female one. Trust you to gravitate to the room full of topless fellas :p

edit: We were done with the finance advice and me and Simps can use this thread like msn, right? lol

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Originally Posted by Ben

Thanks for all the replies and advice, Jim i found this article which was intresting reading... Clicky

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Interesting article indeed. As stated in the article, each mortgage deal comes down to the individuals circumstances. For me, my wife has given up work to raise our son, so we are down to a single income. Having as low a monthly mortgage payment as possible is important right now. When she goes back to work I may look at making overpayments, but I need to compare that to the ever increasing cost of living before making a decision.

Glad you got yourself what sounds like a good deal. If only I won £166m on the lottery....would have made life a lot easier (note to self: start doing lottery, lol)

lottery = mortgage repayment vehicle AND pension..... well winning big on the lottery is about as likely as having what you pay into a pension fund still there come 70 lol

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Originally Posted by MK999

Maybe look into a One Account, is what the parents have, anything in your current/savings/mortgage account (sure you can work that out from the name) counts against your mortgage, so basically if you have a 100k mortgage and 20k in savings, it counts it and charges interest like, an 80k mortgage. Only downside is you only ever get ATM receipts that say you have -£80k to your name lol

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My Mrs used to work for the RBS One Account and it sounds exactly what you are looking for. Its very good if you have spare expenditure as it uses your bank account as the mortgage, the more money you have in the bank at the end of the month the better. You really can pay your mortgage off in a fraction of the time of a normal mortgage.