Mortgage Fees... highway robbery

Crazyface said:
What are you moaning about? A quick google brings up loads of mortgages with no "set up fees" and at 2%. Just what do you want ! ?????? Cake and eat it?
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Those ones are usually higher rates so outgoing usually higher.

Crazyface said:
https://www.moneysavingexpert.com/mortgages/best-buys/?
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Tnx, had a look at the top one here based on my data... the monthly difference is about £83, so over the 2 yr term.. i will pay £1992. Hence turns out to be more expensive in the long run


Anyways spent some time with a mortagage advisor - one of those gelled hair guy at the estate agent - yesterday who did some of the leg work and looks like we probably have the best deal once you consider term, fees, monthly etc. The difference between the 'best' deal and our new offer is about £5 a month for a fixed term of 2yrs. . So it looks like we will stay as I dont need to do anything other than sign a piece of paper. i still have to pay £999 for it. The fees on the best deal is £1999. So my 5quid a month works cheaper. It still means my mortuage has gone up by 30 quid thanks to the interest rise. :(
 
Usually higher!!!!!!!!!! How old are you ?!!!!! If you're worried about that, you've borrowed far too much. If the interest rates ever went anywhere near where they used to be you've lost your house !!!!!!!!! No wonder these kids are being able to afford things (flash new cars/ phones massive houses) if the banks are letting them borrow too much.

BE VERY CAREFUL !!!!
 
Crazyface said:
Usually higher!!!!!!!!!! How old are you ?!!!!! If you're worried about that, you've borrowed far too much. If the interest rates ever went anywhere near where they used to be you've lost your house !!!!!!!!! No wonder these kids are being able to afford things (flash new cars/ phones massive houses) if the banks are letting them borrow too much.

BE VERY CAREFUL !!!!
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I get that feeling very often.. no wonder stress is a killer. Highly leveraged is the word you were looking for.
 
Crazyface said:
Usually higher!!!!!!!!!! How old are you ?!!!!! If you're worried about that, you've borrowed far too much. If the interest rates ever went anywhere near where they used to be you've lost your house !!!!!!!!! No wonder these kids are being able to afford things (flash new cars/ phones massive houses) if the banks are letting them borrow too much.

BE VERY CAREFUL !!!!
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Rates will never get to that high again. And if you notice when people paid higher rates mortgages were much lower because of lower house prices so mortgages were a lot less than they are now per month.
 
pauljames87 said:
Rates will never get to that high again. And if you notice when people paid higher rates mortgages were much lower because of lower house prices so mortgages were a lot less than they are now per month.
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I have a feeling we will go the other way.. Post Brexit, the BoE might be forced to cut rates back down to get over the hump. This might be a temporary arrangement to ride out 2019. it will go back up in 2020 to manage inflation. It will slowely get back to 2% ish sometime by 2025. Of course this is not an expert view and all options open here.
 
Mudball said:
I have a feeling we will go the other way.. Post Brexit, the BoE might be forced to cut rates back down to get over the hump. This might be a temporary arrangement to ride out 2019. it will go back up in 2020 to manage inflation. It will slowely get back to 2% ish sometime by 2025. Of course this is not an expert view and all options open here.
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With brexit causing uncertainty my mortgage was up for renewal at Xmas. Was allowed to switch rates early .. so lowered the interest to 2.79% down from 3.19 .. saving £65 a month.. fixed it for 10 years so I know my out going’s for next 10 years.. took the savings plus an extra £55 to overpay by £120pcm over the 10 years

Overall I’m paying £55 a month but means in 10 years I’d of paid off an additional 14k off my loan

It’s nice having that fixed for 10 years. Mortgage rates won’t go down that much but if they go up I’m protected
 
They can't go down much unless they go negative! (has happened in Japan!)

They won't go up much as this is one variable that can be managed!

A 10 year fix at the rate you got seems deceny shout (with what we know today!!) 10 years is a long time though... but if you can overpay, it's a decent idea as you'll wont getr 2.79 on your savings! Bitcoin anyone? ANYONE???
 
IanM said:
They can't go down much unless they go negative! (has happened in Japan!)

They won't go up much as this is one variable that can be managed!

A 10 year fix at the rate you got seems deceny shout (with what we know today!!) 10 years is a long time though... but if you can overpay, it's a decent idea as you'll wont getr 2.79 on your savings! Bitcoin anyone? ANYONE???
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Can overpay 10% per year of the original loan so 25k a year I can overpay without pen

Going to try and increase overpayments with each annual pay rise aswell so fingers crossed will clear 20k off by time the 10 years is up
 
Similar idea,.. overpay something every month.. hopefully the next time it go to reneg, we are under a psychological mark.
 
Mudball said:
Those ones are usually higher rates so outgoing usually higher.


Tnx, had a look at the top one here based on my data... the monthly difference is about £83, so over the 2 yr term.. i will pay £1992. Hence turns out to be more expensive in the long run
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It depends how you pay that £2000 fee. If you add it to your mortgage you are paying it off until the full length of the mortgage is paid, not just until you lump on another 2 grand for the next deal in 2/3/5 years. You might be paying more per month on fee free mortgage but the total mortgage is only going down NOT getting bigger.
 
I'm over paying £200 a month at the moment, got about 10 months left on my fixed term.

So hoping to pay a big chunk off before re-mortgaging myself next year. If I can pay the chunk I want off I can re-mortgage for less then 15 years!!
 
pauljames87 said:
Yeah because house price % rises over 20 years haven’t completely outweighed salary increases........
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House prices were lower then because the high interest rates effectively capped the available mortgages; that and the bank limit on how many times salary they would allow, plus a bigger housing stock meaning less competition for each house. Now with lower interest rates and the banks increasing the number of times salary they will allow means that the slightly increased salaries can afford relatively much larger mortgages and so the house price increases outweighed salary increases. That and a reduced housing stock meaning people will fight harder for the available ones.
 
Blue in Munich said:
House prices were lower then because the high interest rates effectively capped the available mortgages; that and the bank limit on how many times salary they would allow, plus a bigger housing stock meaning less competition for each house. Now with lower interest rates and the banks increasing the number of times salary they will allow means that the slightly increased salaries can afford relatively much larger mortgages and so the house price increases outweighed salary increases. That and a reduced housing stock meaning people will fight harder for the available ones.
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However the point remains.. a lower % interest rate on a much higher mortgage costs more than a higher interest rate on a lower mortgage

2.79% rate on 240000 mortgage is a lot more a month than 10% rate on a 50,000 mortgage and with wages not rises to cover it mortgages cost more % of wages.
 
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