The Street > The Lounge
you bunch of old *****
Dr. Steve Brule:
--- Quote from: ediotism on January 28, 2016, 12:10:03 AM ---
--- Quote from: Dr. Steve Brule on January 14, 2016, 08:11:02 AM ---Aye mortgages are a shiter in that way. I put an extra £100 a month on top of mine, worked out decent as after 5 years of owning when me and the ex-Mrs sold it I had an extra 6k put into it.
--- End quote ---
--- Quote from: MEAT on January 14, 2016, 07:57:00 AM ---Approx bronze age. Bg dad chat: came to renew my mortgage yesterday, turns out I'd paid £41,000 over the first 5 yr period, 37k of that was interest. 'Oh bother' I said.
--- End quote ---
i'm not 100% on retail residential mortgages in the UK, but after your initial two years fixed terms, you have no more penalty to shop around. This means a basic move called re-financing is possible - basically you find a bank that offers lower interest rate, you shift your mortgage over to them, the new bank pays off the amount you owe the original bank immediately in a lump sum, then you owe the same amount OF PRINCIIPAL to the new bank. and since they use a lower interest rate, you end up paying less as interests.
you can therefore decide to pay the same amount each month and pay off the house sooner, or stay with the same payment period and pay less each month.
you can basically just go into each bank and ask to talk a a mortgage advisor, and tell them you're ready to refiance your house, and you'll be shopping around all the banks for the best rates, then ask them what they can offer. shop around and let the banks offer you rates.
--- End quote ---
Yep this is true. I ended up saving quite a bit on my monthly repayment with my first house when I did this as I rushed with the original mortgage due to pressure from the seller / estate agent.
ginger:
--- Quote from: ediotism on January 28, 2016, 12:14:17 AM ---if you feel generous enough to give them a piece of advice, credit card debt is the worst debt that one can have, since they charge an effective interest rate of 20-60% APR, whereas a mortgage can be from 2%-7% APR. What they want to do, is to ask the bank if the mortgage can be extended at all, and reborrow however much is needed to pay off teh credit card debt IMMEDIATELY.
sell a liver, rob a blind 5 year old autistic grandmother or whatever, steal cigarettes instead of smoking, whatever. pay off the credit card debt IMMEDIATELY.
--- End quote ---
Don't worry, I know all this and I probably should tell them but I'm too busy dying from a dire case of schadenfreude.
Kinchy:
Credit cards can be a good way to get short term low interest finance. After I racked up a silly amount of overdraft as a student I moved it onto an interest free credit card and pay it off monthly before the 0% offer runs out. We also use one to pay our car insurance as its cheaper to pay it in one go than on a monthly basis, and then just pay it off each month to the credit card.
In regards to the mortgage, definitely best to remortgage every few years and get a cheaper deal. We went through a broker with our first mortgage, £250 fee and he will remortgage our property for as long as we are in it now for no extra cost.
ediotism:
--- Quote from: ginger on January 28, 2016, 04:44:48 AM ---Don't worry, I know all this and I probably should tell them but I'm too busy dying from a dire case of schadenfreude.
--- End quote ---
apologies if i come across as patronising, been on this board for so long it always felt like we're all a bunch of teenagers.
ginger:
Still a teen at heart I think.
As for remortgaging, they haven't had the house long enough to do that and it would only be a small saving in any case. I think they've just sorely underestimated the costs of the real world and have no desire to change their lifestyle.
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version