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stokiescum

reducing the girth

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ok ive always tried to overpay my humble morgage,but ive reduced the payments not the length of the morgage,either way the results are impresive origionaly my interest was nealy 100 a month 5 years ago to around 33 a month nowadays.ok a drop in interest payments was helped has my loan to value increased,however ive hedged my bets has im a twat for walking out of jobs and i feel happier makeing overpayments at a wim rather than shortening my morgage term and increaseing my payments,my theory is if i get to ambitiouce and reduce the term it wont be easier to increase it again should i need to.im always mindfull of a change in the law that might mean actualy haveing no morgage even if its a token figure is a bad idea.any opinions ?

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Best piece of advice I've ever had was from a friend of mine when I told him I was considering a 15 year mortgage...

Get a 30 year mortgage and pay it like it's a 15 year one, if you fall on hard times you can reduce your payments. If you've commited to a 15 year term you're fucked.

Sound advice, so in a nutshell I think you're doing the right thing.

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44 minutes ago, stokiescum said:

ok ive always tried to overpay my humble morgage,but ive reduced the payments not the length of the morgage,either way the results are impresive origionaly my interest was nealy 100 a month 5 years ago to around 33 a month nowadays.ok a drop in interest payments was helped has my loan to value increased,however ive hedged my bets has im a twat for walking out of jobs and i feel happier makeing overpayments at a wim rather than shortening my morgage term and increaseing my payments,my theory is if i get to ambitiouce and reduce the term it wont be easier to increase it again should i need to.im always mindfull of a change in the law that might mean actualy haveing no morgage even if its a token figure is a bad idea.any opinions ?

IMO you’ve done fantastically well by overpaying and you can see the reduced interest by doing that.

I personally wouldn’t reduce the term because it gives you some leeway.

On your final point about having a mortgage or not having a mortgage I’m not sure. I used to think it was great having no mortgage but over the last few years I’m not so sure. Ripe to be robbed of more of your life achievement these days to pay for the non contributors!

Maybe keep your mortgage and buy a waterproof time capsule type device to stash your cash in your garden. Can’t remember where I read it but I read a thread on a forum asking how to hide cash and if I had any to hide that’s how I’d do it.

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some things you can get away with to some extent

kids trying to borrow money ive got a morgage

the x ive got a morgage you cant have extra cash

even social know if youve got a morgage in theory you want to work

overtime at work your made to feel guilty if no morgage and others need it more than you

any possable goverment intervention i could take advantage of in the future

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20 minutes ago, stokiescum said:

some things you can get away with to some extent

kids trying to borrow money ive got a morgage

the x ive got a morgage you cant have extra cash

even social know if youve got a morgage in theory you want to work

overtime at work your made to feel guilty if no morgage and others need it more than you

any possable goverment intervention i could take advantage of in the future

For the foreseeable none IMO stokie.

I feel your pain.....feeling exploited and everyone thinking you will provide.

How old are your grown up kids!

I’m a single parent through circumstances so when my son at age 22 got a job paying varying amounts between £240to £400 pounds per week I said he had to pay £50 pw dig money and it was up to him how he dealt with income discrepancies.

He obviously, from his response, was very displeased with that. 

Told him that he could pay it or keep all his money and sort his own life out re rent etc. He grudgingly paid up. 

A year or so ago his income increased so I said his dig money was being increased to £75pw. No problem he said...I’ll pay that from next week!

Hmmmmm....I’m undecided about the way forward with son. Last week when I was putting some washed and dried clothing on his bed I saw an apple macbook? I don’t want one but I think they’re expensive and he does minimal stuff around the home.

I can put my home up for sale at anytime and go travelling. I know I could handle that while looking out for a decent community to settle in.

I have a son and a daughter. Son almost 25 and daughter almost 24.

I’m confused about why my daughter left home aged 18 and has been very independent (student loans involved though for rent) whereas my son is still at home and paying what mummy asks to stay here.

o.O

 

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nothing wrong with paying to stay with his mum,if he is paying his way unless mum wants him out of the way.we are all independant at different stages of our lifes,i fked off to london steel errecting at 21 and stayed there till i was 25 sometimes id take digs other times sleep in the van other times go squating at no time was i realy independant ie a plan i just drifted but i enjoyed not being controled to much nor comiting to anything.maybe your son doesnt want to work all week to give 60% plus of his income away in rent,i threw my son out at 25 has he took the piss moved his girlfriend in wrecked my house trying to do craft stuff to sell on facebook,they now live together 7 miles away she works he is a layabout but he wont get any help from me until he clears 1500 quids worth of debt,in many ways its the best 1500 quid ive ever spent he doesnt bother me .

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8 hours ago, Roger_Mellie said:

Best piece of advice I've ever had was from a friend of mine when I told him I was considering a 15 year mortgage...

Get a 30 year mortgage and pay it like it's a 15 year one, if you fall on hard times you can reduce your payments. If you've commited to a 15 year term you're fucked.

Sound advice, so in a nutshell I think you're doing the right thing.

Moreover if you take out an offset mortgage you get two other benefits - effectively a credit line at mortgage rates up to the value of the principal plus tax efficient temporary savings - if you squirrel away tax payments/savings for the year into the account you further reduce the interest accrued on the outstanding balance, you effectively don't need a separate savings account. If you need access to funds fund to dip into then you have immediate access to credit at the same mortgage rate. Obviously the danger is that you over dip into the account but after 30 years if looking to scale down property then should be able to clear it anyway under worst circumstances.

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8 hours ago, stokiescum said:

some things you can get away with to some extent

kids trying to borrow money ive got a morgage

the x ive got a morgage you cant have extra cash

even social know if youve got a morgage in theory you want to work

overtime at work your made to feel guilty if no morgage and others need it more than you

any possable goverment intervention i could take advantage of in the future

Interesting.  Though you could do the same by not having a mortgage and lying about it.

I do wonder if MIRAS (tax relief for mortgage interest) may make a comeback if house prices drop and the government is looking for more props to lift them up again.

Well done on the overpayment, I know someone who has done the same though the overpayment is automatically shortening the length of the mortgage.  She's in a slightly different position as her parents have an equal mortgage on the house (stupid house prices meaning that despite it being a modest terrace she couldn't afford it by herself) so I think she wants to pay off her bit and then buy them out with a second mortgage.  They would be very happy with her doing this.

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I went for reducing the term on mine as my overpayment since switching to a new fix is limited to £2500 a year. Reducing the payment would limit the amount I was able to pay off a year.

I often find myself pondering 'what if' scenarios, and I honestly don't know whats best. There are many scenarios in this fucked up world where you're better off with debt if you lose your job, especially if you have no savings. 

I'm a bit annoyed at myself, when I first took out the mortgage the 5 year fix allowed a overpayment of £500 a month before ERC. The new fix changed that and I didn't spot it (basically it says if you take the mortgage out before 20XX its £500 after 20XY is £500pm up to £2500 a year), I didn't twig that taking a new 5year would change the date my mortgage was taken out for this purpose. If I'd known I'd have reduced the term significantly and blasted through it.

Suppose I don't have a habit of walking out of jobs though :) And could pay it off from savings in hard times, its £179pcm.

Edited by Cosmic Apple

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House prices remain crazy, and completely detrimental to the nation sucking all that money out of the economy.

Mortgage terms were 25 years, so now the norm is 30?

Glad I'm out of it (mine paid off a couple of years ago. House prices half of what they are now back then.). Thought about a fresh start somewhere, but the thought of taking on more debt and being a slave to it does not appeal.

The only winners are the banks and govt with their faux GDP.

Apologies for coming over all HPC!

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5 minutes ago, Cosmic Apple said:

I went for reducing the term on mine as my overpayment since switching to a new fix is limited to £2500 a year. Reducing the payment would limit the amount I was able to pay off a year.

I often find myself pondering 'what if' scenarios, and I honestly don't know whats best. There are many scenarios in this fucked up world where you're better off with debt if you lose your job, especially if you have no savings. 

I'm a bit annoyed at myself, when I first took out the mortgage the 5 year fix allowed a overpayment of £500 a month before ERC. The new fix changed that and I didn't spot it (basically it says if you take the mortgage out before 20XX its £500 after 20XY is £500pm up to £2500 a year), I didn't twig that taking a new 5year would change the date my mortgage was taken out for this purpose. If I'd known I'd have reduced the term significantly and blasted through it.

Suppose I don't have a habit of walking out of jobs though :) And could pay it off from savings in hard times, its £179pcm.

That's another advantage with offset mortgages - overpay what you like when you like, just treat like a savings account and throw the kitchen sink at it knowing you can likewise withdraw if you overdo it a bit and need some funds.

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1 minute ago, onlyme said:

That's another advantage with offset mortgages - overpay what you like when you like, just treat like a savings account and throw the kitchen sink at it knowing you can likewise withdraw if you overdo it a bit and need some funds.

I have an offset, but not in name. I could have paid it off last time the fix ended, but a 5year 1.29% fix with £0 fees? Why bother. Got the money sat in PBs instead.

If house prices were not so bonkers I'd have moved up 'the ladder' by now and may need to think more seriously given the larger sums involved.

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1 hour ago, Cosmic Apple said:

I went for reducing the term on mine as my overpayment since switching to a new fix is limited to £2500 a year. Reducing the payment would limit the amount I was able to pay off a year.

I often find myself pondering 'what if' scenarios, and I honestly don't know whats best. There are many scenarios in this fucked up world where you're better off with debt if you lose your job, especially if you have no savings. 

I'm a bit annoyed at myself, when I first took out the mortgage the 5 year fix allowed a overpayment of £500 a month before ERC. The new fix changed that and I didn't spot it (basically it says if you take the mortgage out before 20XX its £500 after 20XY is £500pm up to £2500 a year), I didn't twig that taking a new 5year would change the date my mortgage was taken out for this purpose. If I'd known I'd have reduced the term significantly and blasted through it.

Suppose I don't have a habit of walking out of jobs though :) And could pay it off from savings in hard times, its £179pcm.

i can overpay 10% a year after that you get hit with a 3% penalty the first year,2% the secand.my morgage is 162 a month but this will drop to roughly 135 even if i pay no more off it.to get it down to 100 a month i will need to pay off 4700 before october.

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I too overpay and have just had a letter from the building society. They say I can reduce my mortgage term, for which they now say they will charge me £40, or can recalculate the amount I pay for the remainder of the term of the mortgage (about eight and half years). This is the first time that I have had such a letter despite always overpaying and the first time a £40 fee has been mentioned which I assume is on top of the exit fee charge which I am sure I will also eventually have to pay. Previously the mortgage has been recalculated automatically just as it has when there has been any change in interest rates.

My thoughts are that I will continue to overpay the newly recalculated amount but will be careful on the last years recalculation so that I may then pay a nominal amount for remainder of the term which in effect will mean that any charge to hold deeds safely,if this still exists nowadays, is avoided as the building society themselves still have a (small) vested interest.

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26 minutes ago, man o' the year said:

I too overpay and have just had a letter from the building society. They say I can reduce my mortgage term, for which they now say they will charge me £40, or can recalculate the amount I pay for the remainder of the term of the mortgage (about eight and half years). This is the first time that I have had such a letter despite always overpaying and the first time a £40 fee has been mentioned which I assume is on top of the exit fee charge which I am sure I will also eventually have to pay. Previously the mortgage has been recalculated automatically just as it has when there has been any change in interest rates.

My thoughts are that I will continue to overpay the newly recalculated amount but will be careful on the last years recalculation so that I may then pay a nominal amount for remainder of the term which in effect will mean that any charge to hold deeds safely,if this still exists nowadays, is avoided as the building society themselves still have a (small) vested interest.

ive had none of that yet but then again ive not touched the length of the morgage,bastards

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50 minutes ago, man o' the year said:

I too overpay and have just had a letter from the building society. They say I can reduce my mortgage term, for which they now say they will charge me £40, or can recalculate the amount I pay for the remainder of the term of the mortgage (about eight and half years). This is the first time that I have had such a letter despite always overpaying and the first time a £40 fee has been mentioned which I assume is on top of the exit fee charge which I am sure I will also eventually have to pay. Previously the mortgage has been recalculated automatically just as it has when there has been any change in interest rates.

My thoughts are that I will continue to overpay the newly recalculated amount but will be careful on the last years recalculation so that I may then pay a nominal amount for remainder of the term which in effect will mean that any charge to hold deeds safely,if this still exists nowadays, is avoided as the building society themselves still have a (small) vested interest.

It depends how long you've had the property.  Mine was four years' ago and is recorded at the Land Registry so no deeds.  I've kept the old ones out of interest.

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47 minutes ago, Frank Hovis said:

It depends how long you've had the property.  Mine was four years' ago and is recorded at the Land Registry so no deeds.  I've kept the old ones out of interest.

Once you were Sid the sexist, then a trucker, and now a financial advisor.:CryBaby:

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1 hour ago, stokiescum said:

ive had none of that yet but then again ive not touched the length of the morgage,bastards

Mines with NW, I've had no charges except when I overpayed too much in one year. Just ERC on the amount that was over the allowance.

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Pay it off.

Ive a 10y, 5 year fix at 1.6% with first direct. As lomg as the balance is positive then i can overpay as much as i like. 30% has gone in the 1st year. Ill over pay for another year or two, leaving about 20k then cancel over payments.

Having long term debt is very expensive. Just put the total payments of a 20y v 30y mortgage in excel and see how cheap 50£ less a month really is.

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