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General => General discussion => Topic started by: Wazzzer on 11 September 2013, 12:11
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But we own a bit more of our house :afro:
Just transferred the money to our mortgage account which will effectively knock 10 years off the term of our mortgage brining it down to 17 left to go. Works out to £40 more a month than we are paying now which we can afford plus we're trying to pay off £200 a month extra which should knock a further 6 years off (all going well)
This is a massive achievement for me as I'm normally useless with money and spend all of my wages every month lol :laugh:
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Must be such a good feeling! :cool:
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Awesome :cool:
I bought my house a year ago and got a 6 month statement last week, the balance had been reduced by £9 :sick:
Need to start over paying each month I think :grin:
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Awesome :cool:
I bought my house a year ago and got a 6 month statement last week, the balance had been reduced by £9 :sick:
Need to start over paying each month I think :grin:
It's like that for the first year or so. The last year is the best, I made a spreadsheet of what the balance would be after each payment and ticked each one off as it came along. With a year to go, the payment contained around £60 of interest, the last payment contained something like £7 of interest. Such a good feeling... until we come to move as planned in about 4 years time and will probably have to borrow all over again.
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Its even worse if like me, you took out a 5 year fixed rate mortgage and 3 months later the market collapsed! :sick:
Was stuck paying £799 pcm until last month, where monthly repayments went down to £586!
We have a tenant in there now though and she's paying £695 so I'm actually in profit! I'm now overpaying each month and putting all tenancy income into it to help bring it down, as I'd still have 19 years left otherwise. (Originally a 24 year Mortgage) so hopefully it'll knock a couple of years off. No plans to move back in now as we're in Married Quarters paying £380 pcm which includes rent, CILOCT, and water. :cool:
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
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If I went to the bank to borrow another £100k plus to buy a flat to rent they'd burst out laughing.
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Toby - it actually hurt parting with the money, it least it was all electronic lol. Thing is £10k in a savings account won't earn as much as it will save us on the mortgage in the long run. Our house is actually worth £10k more than what we paid for it so that did us a favour with the LTV %
Dom as dubber said the first few years suck, you really don't chip away at the loan amount which is really disheartening.
Sean our rate at the moment is quite high as we did a similar thing three years ago; a month after we took our three year fixed rate out the market bottomed out and we were stuck paying about £80 more than we would have if we'd just waited...
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We bought our house last November, luckily we only have to pay £425 a month. Think we've paid off nearly £3k already :cool:
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
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You need a years worth of book keeping at the VERY MINIMUM if self employed.
There lies the issue for most self employed people. How many of us have healthy looking books?
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Nice one Wes :smiley:
We had our statement through last month; paid off nearly 10k in 7 years. We got lucky and DIDN'T listen to the twit at HSBC who was trying to get us to fix our rates after our initial rate ended. A week later the world collapsed!!!
Got a mate who has an old tracker mortgage which currently tracks at just 0.24% above the base rate!!! Jammy fcuker :laugh:
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But keep an eye on this guys...the housing market is starting to recovery slightly...normally a good sign and if they do then its likely that mortgage rates will be altering as they all link back to the overall economy (still not sure if there will be any real growth in the next year tho)...if you are not in a deal, then start watching and getting ready...if we do recover it'll be sky everything again so keep the overpayments going while you can :afro:
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
Fair enough wraps things up quite nicely.
In mine and my mates case, we're directors and employed by our own companies. It's a work around I guess.
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From what I understand, with buy to let mortgages, as long as you can put up a 25-30% deposit, the lenders are only concerned with the rental income covering the repayments. Many people who have rental portfolios are only paying back the interest on the loans and using the difference between rental money and repayments as income. The theory with this is, long term the value of the property will increase meaning that you it can be sold and the mortgage paid off, leaving a nice little sum. It has to be remembered that this profit will be subject to capital gains tax though.
This is all well and good providing that everything goes to plan. It's all very well being mortgaged up to the hilt on a number of properties, but at some point that money will have to be paid back. You only need a few months with a property being empty and it could all go very wrong. It's a risk you take I guess, but those that have it, didn't get it without taking a few risks along the way.
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
Fair enough wraps things up quite nicely.
In mine and my mates case, we're directors and employed by our own companies. It's a work around I guess.
directors of which company :whistle:
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Most people just buy a "flat" and pretend to live there while renting it out until they have enough property that they can,
A, do it properly with the right mortages and paperwork
B, Sell it all off avoiding taxes and other costs and ride into the sun set
Buy to let is a get rich quick scam for scum bags for the most part.
Sore point for me :grin:
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Most people just buy a "flat" and pretend to live there while renting it out until they have enough property that they can,
A, do it properly with the right mortages and paperwork
B, Sell it all off avoiding taxes and other costs and ride into the sun set
You could just buy a flat and rent it out, but where do you live in the mean time? Unless you are mortgage free on the house you live in, the lenders will know that it's a mortgage for a second property.
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We bought 9 months ago and Zoopla are suggesting our house is worth £16k more than we paid. Not sure how reliable that is. We did have a full central heating fitted as it had a gas boiler but Zoopla probably don't know that (or there old price thought it already had it) the house took 6 months to complete on and in tht time the mortgage rates dropped so saved £50ish a month.
Still we're staying put at least 10 years unless I come into a huge amount of money!
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We bought 9 months ago and Zoopla are suggesting our house is worth £16k more than we paid. Not sure how reliable that is. We did have a full central heating fitted as it had a gas boiler but Zoopla probably don't know that (or there old price thought it already had it) the house took 6 months to complete on and in tht time the mortgage rates dropped so saved £50ish a month.
Still we're staying put at least 10 years unless I come into a huge amount of money!
Zoopla suggests that mine has increased in value by about £8k over the last 12 months, I'm very dubious about that though.
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I think we did pay under the real value of the house. But as you said Zoopla estimates seem to be a bit off.
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Most people just buy a "flat" and pretend to live there while renting it out until they have enough property that they can,
A, do it properly with the right mortages and paperwork
B, Sell it all off avoiding taxes and other costs and ride into the sun set
You could just buy a flat and rent it out, but where do you live in the mean time? Unless you are mortgage free on the house you live in, the lenders will know that it's a mortgage for a second property.
Trust me it's easier than you think, the system relys on honesty as cross checks dont happen automatically.
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Paid 32k for my house, its now worth well over 200k... thanking you!
Thom
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
Fair enough wraps things up quite nicely.
In mine and my mates case, we're directors and employed by our own companies. It's a work around I guess.
That's not a work around. You wont even get past a contact meeting with a financial advisor never mind a mortgage lender.
It's not possible to make up living in a premises either to allow you buy to let. Part of the application process requires submitting utility bills from across the last year or so with both partners names (assuming your a couple) along with bank statements. Anyone thinking that they can work around a system and duck and dodge checks are quite frankly, deluded.
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
Fair enough wraps things up quite nicely.
In mine and my mates case, we're directors and employed by our own companies. It's a work around I guess.
That's not a work around. You wont even get past a contact meeting with a financial advisor never mind a mortgage lender.
It's not possible to make up living in a premises either to allow you buy to let. Part of the application process requires submitting utility bills from across the last year or so with both partners names (assuming your a couple) along with bank statements. Anyone thinking that they can work around a system and duck and dodge checks are quite frankly, deluded.
I will just add I have been accepted for a mortgage. Haven't gone through as things getting all to serious with the GF scared me off. :grin:
Did have guarantors though.
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
Fair enough wraps things up quite nicely.
In mine and my mates case, we're directors and employed by our own companies. It's a work around I guess.
That's not a work around. You wont even get past a contact meeting with a financial advisor never mind a mortgage lender.
It's not possible to make up living in a premises either to allow you buy to let. Part of the application process requires submitting utility bills from across the last year or so with both partners names (assuming your a couple) along with bank statements. Anyone thinking that they can work around a system and duck and dodge checks are quite frankly, deluded.
I will just add I have been accepted for a mortgage. Haven't gone through as things getting all to serious with the GF scared me off. :grin:
Did have guarantors though.
Well there's your answer - effectively your parents have been accepted for another mortgage.
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On a serious note, how easy is it to get a house and then say get a flat buy to let?
Honestly have no idea on the financial side but say you can afford the deposit for it? Say buy a house then 2 or so years later is it possible?
A mate of mine has done it, I will ask how when I see him next however someone's told me his dads minted.
Just long term goals to think about really.
thought you got accepted for a 170k mortgage as you would know all this if you did :whistle:
I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
Sorry, must have forgotten to mention it being a second mortgage. .....
twit.
You need a years worth of book keeping at the VERY MINIMUM if self employed. Going through all this at the moment. As for buy for let you need to be a property landlord currently with most companies wanting you to have a portfolio of 3+ houses, plus owning your current residential address. Whack on top a 25% minimum deposit and interest of 5% and you begin to see why it's only a viable proposition for experienced landlords and not average Joe, lots of messing about with figures and a hell of a lot of money to risk across your portfolio.
Fair enough wraps things up quite nicely.
In mine and my mates case, we're directors and employed by our own companies. It's a work around I guess.
That's not a work around. You wont even get past a contact meeting with a financial advisor never mind a mortgage lender.
It's not possible to make up living in a premises either to allow you buy to let. Part of the application process requires submitting utility bills from across the last year or so with both partners names (assuming your a couple) along with bank statements. Anyone thinking that they can work around a system and duck and dodge checks are quite frankly, deluded.
I will just add I have been accepted for a mortgage. Haven't gone through as things getting all to serious with the GF scared me off. :grin:
Did have guarantors though.
Well there's your answer - effectively your parents have been accepted for another mortgage.
Yeah and I'm willing to bet that my mates the same, 23 owns one house for him and his wife, a shop and another place to rent. I think his dads in properties though and apparently is loaded.
Seems like an awesome idea as I could easily afford the payments, I just don't want it to go tits up workwise and then my parents be lumped with it.
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The only advice I can give is when interest rates are so low you pay interest only and stick the main monies into a high interest rate bond or savings.
when interest rates go up fix it then switch back to capital repayment, then liquidate the savings bond and pay off the early payment accumulation.
That way you saved on interest plus you gained interest higher than just capital draw down.
Hope that makes sense for you chaps?
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The only advice I can give is when interest rates are so low you pay interest only and stick the main monies into a high interest rate bond or savings.
when interest rates go up fix it then switch back to capital repayment, then liquidate the savings bond and pay off the early payment accumulation.
That way you saved on interest plus you gained interest higher than just capital draw down.
Hope that makes sense for you chaps?
So just pay interest when low, then lock yourself into that rate when it looks like its all gonna go up and pay your mortgage as usual (interest+mortgage) for a couple of years then do it all over again?
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The only advice I can give is when interest rates are so low you pay interest only and stick the main monies into a high interest rate bond or savings.
when interest rates go up fix it then switch back to capital repayment, then liquidate the savings bond and pay off the early payment accumulation.
That way you saved on interest plus you gained interest higher than just capital draw down.
Hope that makes sense for you chaps?
So just pay interest when low, then lock yourself into that rate when it looks like its all gonna go up and pay your mortgage as usual (interest+mortgage) for a couple of years then do it all over again?
Errr no the capital you are supposed to pay, you put to one side for reinvestment as the interest rates will be higher than interest only payment. That is the key here you can only do this type of restructuring if you are disciplined as you essentially (save+better interest) what you would have to pay back anyways!
1) £100 capital repayment per year (simple) (£10 capital +interest £5) £100 got reinvested by mortgage company right! £15 per month total.
2) £100 capital, interest only £5 goes to mortgage company (£10 fixed yield bond one year) earn't £20 of interest over that 12month period. So sticking that (£10 per month into high interest product) come month 13 interest rates go up FIXED now.
Liquidated bond got £120 pounds back payback more than original £100.00 capital repayment. £5 per month £12 banked total payback to mortgage company £17 at term £2 pounds you would have lost to mortgage company!
This only works in times of low underlining rates of interest as we all fix when its about to rise high.
Some dicks will spend some of that capital saved and end up being worse off!
Fundamentally as long as you make more than the current interest against your mortgage then you are always going to draw that mortgage down quicker once you pay off one lump at each term.
Things to watch out
Early payment fees: (Some mortgage companies charge you more money when you pay it off early because they loose the interest by shorting the payment terms)
Products that cost more than yield: (The investment is making less money than it cost to invest)
Products that tie you in over 12 months as you don't know when interest rates could suddenly rise?
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The only advice I can give is when interest rates are so low you pay interest only and stick the main monies into a high interest rate bond or savings.
when interest rates go up fix it then switch back to capital repayment, then liquidate the savings bond and pay off the early payment accumulation.
That way you saved on interest plus you gained interest higher than just capital draw down.
Hope that makes sense for you chaps?
So just pay interest when low, then lock yourself into that rate when it looks like its all gonna go up and pay your mortgage as usual (interest+mortgage) for a couple of years then do it all over again?
Errr no the capital you are supposed to pay, you put to one side for reinvestment as the interest rates will be higher than interest only payment. That is the key here you can only do this type of restructuring if you are disciplined as you essentially (save+better interest) what you would have to pay back anyways!
£100 capital repayment per year (simple) (£10 capital +interest £5) £100 got reinvested by mortgage company right!
£100 capital, interest only £5 goes to mortgage company (£10 fixed yield bond one year) earn't £20 of interest over that 12month period. So sticking that (£10 per month into high interest product) come month 13 interest rates go up FIXED now.
Liquidated bond got £120 pounds back payback more than original £100.00 capital repayment.
This only works in times of low underlining rates of interest as we all fix when its about to rise high.
Some dicks will spend some of that capital saved and end up being worse off!
Fundamentally as long as you make more than the current interest against your mortgage then you are always going to draw that mortgage down quicker once you pay off one lump at each term.
Things to watch out
Early payment fees:
Products that cost more than yield:
Products that tie you in over 12 months as you don't know when interest rates could suddenly rise?
(http://i.imgur.com/y2Zwk.gif)
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The only advice I can give is when interest rates are so low you pay interest only and stick the main monies into a high interest rate bond or savings.
when interest rates go up fix it then switch back to capital repayment, then liquidate the savings bond and pay off the early payment accumulation.
That way you saved on interest plus you gained interest higher than just capital draw down.
Hope that makes sense for you chaps?
So just pay interest when low, then lock yourself into that rate when it looks like its all gonna go up and pay your mortgage as usual (interest+mortgage) for a couple of years then do it all over again?
Errr no the capital you are supposed to pay, you put to one side for reinvestment as the interest rates will be higher than interest only payment. That is the key here you can only do this type of restructuring if you are disciplined as you essentially (save+better interest) what you would have to pay back anyways!
£100 capital repayment per year (simple) (£10 capital +interest £5) £100 got reinvested by mortgage company right!
£100 capital, interest only £5 goes to mortgage company (£10 fixed yield bond one year) earn't £20 of interest over that 12month period. So sticking that (£10 per month into high interest product) come month 13 interest rates go up FIXED now.
Liquidated bond got £120 pounds back payback more than original £100.00 capital repayment.
This only works in times of low underlining rates of interest as we all fix when its about to rise high.
Some dicks will spend some of that capital saved and end up being worse off!
Fundamentally as long as you make more than the current interest against your mortgage then you are always going to draw that mortgage down quicker once you pay off one lump at each term.
Things to watch out
Early payment fees:
Products that cost more than yield:
Products that tie you in over 12 months as you don't know when interest rates could suddenly rise?
(http://i.imgur.com/y2Zwk.gif)
Haaa that's one of my favorite shows from America!
What don't you understand? :grin:
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The only advice I can give is when interest rates are so low you pay interest only and stick the main monies into a high interest rate bond or savings.
when interest rates go up fix it then switch back to capital repayment, then liquidate the savings bond and pay off the early payment accumulation.
That way you saved on interest plus you gained interest higher than just capital draw down.
Hope that makes sense for you chaps?
So just pay interest when low, then lock yourself into that rate when it looks like its all gonna go up and pay your mortgage as usual (interest+mortgage) for a couple of years then do it all over again?
Errr no the capital you are supposed to pay, you put to one side for reinvestment as the interest rates will be higher than interest only payment. That is the key here you can only do this type of restructuring if you are disciplined as you essentially (save+better interest) what you would have to pay back anyways!
£100 capital repayment per year (simple) (£10 capital +interest £5) £100 got reinvested by mortgage company right!
£100 capital, interest only £5 goes to mortgage company (£10 fixed yield bond one year) earn't £20 of interest over that 12month period. So sticking that (£10 per month into high interest product) come month 13 interest rates go up FIXED now.
Liquidated bond got £120 pounds back payback more than original £100.00 capital repayment.
This only works in times of low underlining rates of interest as we all fix when its about to rise high.
Some dicks will spend some of that capital saved and end up being worse off!
Fundamentally as long as you make more than the current interest against your mortgage then you are always going to draw that mortgage down quicker once you pay off one lump at each term.
Things to watch out
Early payment fees:
Products that cost more than yield:
Products that tie you in over 12 months as you don't know when interest rates could suddenly rise?
(http://i.imgur.com/y2Zwk.gif)
Haaa that's one of my favorite shows from America!
What don't you understand? :grin:
Pretty much all of it, I think i'm struggling with some of the terminology at the moment. Don't bother writing another response as you have been more than helpfull. Will get my head around the terms and figures and then work through it with my figures. Cheers Jay
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Do you remember accounts from savings when interest got transferred to the mortgage account?
Same idea but you reinvest the capital repayment yourself so you pay more back that's it really mate!
You know when people say why rent all that money is wasted! Go for a mortgage instead? The way I view things is why pay all that capital payment to the bank when you can earn money of it!
Trick is to save and save and save after 4 years on a interest only the money you would have to have paid to them has earned you more than what you paid to the mortgage company :smiley: not helping Am'I LOL!
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This
(http://i.imgur.com/y2Zwk.gif)
I can't be bothered with all of the fiddling about (and if I'm honest I probably lack the discipline too). I'll take the fixed repayment, thanks.
I've actually taken a different approach to nailing our mortgage. Took a 25yr one on repayment out in Bristol when we moved there. Moved back to IOW five years later, had to take a new mortgage out (because mortgage companies after utter c*nts and their products are NOT portable) so took it out repayment over 20 years, to avoid just letting the term creep with the house move. That hurts, but at least I know it'll be paid off in about 17 years now. Phew, eh? :grin:
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They should do mobile mortgages I've been in a similar situation where I could have gain 700% capital gain, but couldn't move a mortgage abroad. These issues I don't understand from UK rules is the Asset or house is worth XYZ and it should hold its value.
In my case I wanted to build from scratch so final build would have cost 200K, but asset worth 900K afterwards with over 35% rental yield, but they did get scared when it comes down to international property law, much like what when on in Spain and fancy condos being built at an alarming rate!
Thing is DH if you retire early long term its worth the hassle!
If you have to pay capital and interest every month anyways, why don't you pay it into a high interest account instead?
I did things the other way around working hard money was good, paid off my mortgage early, real early then remortgage a small amount and the irony is living in a bigger house means larger bills which makes life harder to maintain if life throws a spanner in the works and standard of living has gone down. I feel like the mid life guy who drives a Porsche who can't afford petrol to put in it :lipsrsealed: :laugh:
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Do you remember accounts from savings when interest got transferred to the mortgage account?
Same idea but you reinvest the capital repayment yourself so you pay more back that's it really mate!
You know when people say why rent all that money is wasted! Go for a mortgage instead? The way I view things is why pay all that capital payment to the bank when you can earn money of it!
Trick is to save and save and save after 4 years on a interest only the money you would have to have paid to them has earned you more than what you paid to the mortgage company :smiley: not helping Am'I LOL!
Got it! Pay Interest only whilst locked into a low rate and your capital is put in a high interest account and not touched. When you step out of the locked low rate pump all that capital in as capital payment and then wait for another low rate to get locked into. Is this correct? :laugh:
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Do you remember accounts from savings when interest got transferred to the mortgage account?
Same idea but you reinvest the capital repayment yourself so you pay more back that's it really mate!
You know when people say why rent all that money is wasted! Go for a mortgage instead? The way I view things is why pay all that capital payment to the bank when you can earn money of it!
Trick is to save and save and save after 4 years on a interest only the money you would have to have paid to them has earned you more than what you paid to the mortgage company :smiley: not helping Am'I LOL!
Got it! Pay Interest only whilst locked into a low rate and your capital is put in a high interest account and not touched. When you step out of the locked low rate pump all that capital in as capital payment and then wait for another low rate to get locked into. Is this correct? :laugh:
Yes bingo!
If you are clever enough about it you can make money on capital as essentially leave interest only up to term, but that means you would have over and above the amount you owe the bank like your own mini endowment, but that means 20+ years of risk to financial products, unless its a very low risk product which would give you little or above the underling interest rate!
Most people forget after an interest only mortgage you still owe the bank the whole bloody lot unless you know a life insurance policy is going to kick in, but that's a morbid bit of advice for unique clients. :sad:
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If you are clever enough about it you can make money on capital
This is a lot of fiddling, I'd rather get busy earning it than fiddling with it.
Obviously in a perfect world I'd do both, but this ain't a perfect world. :grin:
Most people forget after an interest only mortgage you still owe the bank the whole bloody lot
People are really that stupid?! :shocked:
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If you are clever enough about it you can make money on capital
This is a lot of fiddling, I'd rather get busy earning it than fiddling with it.
Obviously in a perfect world I'd do both, but this ain't a perfect world. :grin:
Most people forget after an interest only mortgage you still owe the bank the whole bloody lot
People are really that stupid?! :shocked:
Not stupid just forgetful 5 years or 10 years screams by, term gets closer and closer as life goes by without people wanting to know about future prospects in hand! :rolleyes:
If I had it my way I would liquidate state pensions and private ones even NI contributions and manage it myself!
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I took out a tracker mortgage back in the day, right before the rate plummeted, pretty happy :grin:
The amount of advice we got to take out a 5 year fixed at the time though was scary. So glad I ignored them all.