Mortgage Advice

Just that back in the day building societies insisted you had a means of paying off the outstanding capital once an interest only mortgage reached term as a condition of letting you have interest only.
I had an endowment mortgage in the 70s. Great at the time because you got tax relief on mortgage interest payments in those days and of course with an interest only mortgage it meant you got full tax relief for the full term, unlike a repayment mortgage where the interest reduced as you paid off capital. They abolished MIRAS tax relief in the late 70s. I was lucky in that my endowment not only paid off the mortgage but left some over.
 
Just that back in the day building societies insisted you had a means of paying off the outstanding capital once an interest only mortgage reached term as a condition of letting you have interest only.
I had an endowment mortgage in the 70s. Great at the time because you got tax relief on mortgage interest payments in those days and of course with an interest only mortgage it meant you got full tax relief for the full term, unlike a repayment mortgage where the interest reduced as you paid off capital. They abolished MIRAS tax relief in the late 70s. I was lucky in that my endowment not only paid off the mortgage but left some over.
No idea - we were frantically trying to sell it about 2 years ago as the full duration of the mortgage was up.....
 
This is not always true. If the mortgage fee is £1000 for a 5 year deal, then that's the equivalent of £16.67 per month (1000 / 60) so if the higher interest rate makes the monthly payment increase by more than this, then go with the fee-based product, otherwise take the higher rate. Of course there may be different early redemption fees and overpayment rules to consider with the different offers to consider, but I would say it is unlikely that anyone will be needing to redeem early on the current low rates, especially with a further 5yrs on the mortgage after the deal ends. Also @yeseye , adding the mortgage fee onto the amount borrowed will attract interest on it so that will make that fee become nearer to £1066 after compounding 5yrs interest on it.

I had a quick look at the 5yr and 7yr non-fee products yesterday and worked out that if you took the 7yr product, in comparison with the 5yr then you would have paid £1740 more overall at the 5yr mark. This means that if you took the 5yr deal you would need something around 4.25% in 5yrs time (when you need to find a new deal) to still pay less than the 7yr deal. I would think that interest rates won't go that high but of course you never know.

The benefit of a 7yr deal on a 10yr mortgage, to me, is that if interest rates do start increasing dramatically in the coming years, you have time to do a lot of overpaying to take advantage of the locked in rate and reduce that 10yrs to 8.5 or 9 yrs, resulting in a really short period of later years higher payments. Just my 2-penneth.
If the monthly payments increase then the payments have not gone down - the examples he gave us were the combined payment, so I don't understand your point.

Also I advised him to get some proper free advice rather than asking unqualified people on here, which I think is best from the questions he was asking :)
 
If the monthly payments increase then the payments have not gone down - the examples he gave us were the combined payment, so I don't understand your point.

Also I advised him to get some proper free advice rather than asking unqualified people on here, which I think is best from the questions he was asking :)
Re-reading your response I can see that you were referring to his example, I thought you were suggesting that paying a mortgage fee was always advisable when it lowered the monthly payment, but I was pointing out that you need to do the basic maths (without adding the fee to the mortgage) to see if you end up paying more or less than the fee over the term. Usually, paying a fee will get you a lower % and therefore a lower monthly payment, but sometimes it is cheaper to take the higher monthly payment without the fee.

Expert advice is always the right thing for those that don't understand, of course, but the OP hadn't said they were under that category, and so was after opinion from those with experience (qualified or not) of the matter, plus those that advise bricking and torching.





;)
 
what's the latest you can leave it to renewing a mortgage ?

can you leave it till right end of your current deadline ?
 
No guarantee of renewal at anything other than SVR if you do.
If you want fixed deals get researching and remember you can get an offer that last 6 months in May cases.
 
No guarantee of renewal at anything other than SVR if you do.
If you want fixed deals get researching and remember you can get an offer that last 6 months in May cases.

I'm 7 months away to end of my mortgage and already had a couple of calls to start renew process.

but i want to leave it as late as poss to get a bank loan off/down

Can i just ignore them till say 1 month before my mortgage deadline ?
 
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