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Funny money
- Thread starter pipme
- Start date
The bit about knocking down the mortgage is ok if you come into a windfall and are able to increase the repayments but a lot of people tend to go for the best property they can afford and hence the biggest mortgage they can afford at the time, the annual pay rise tends to get swallowed up paying bills so as mentioned before unless their income dramatically increases they are stuck with what they have, of course what i am referring to are those with endowment mortgages.
Is there any one unfortunate enough, to have one of those now ?
Years ago they were the biz, tax relief on the insurance component and the interest - which was a constant throughout the loan given no rate changes - at one's highest rate = relief on the whole monthly repayment, plus the bonus earnings at the end ... I just do not understand how that type of mortgage continued after tax reliefs were steadily chopped !! and one became totally exposed to the stock market. ... Hey Ho ! Glad to be free of the big M
Years ago they were the biz, tax relief on the insurance component and the interest - which was a constant throughout the loan given no rate changes - at one's highest rate = relief on the whole monthly repayment, plus the bonus earnings at the end ... I just do not understand how that type of mortgage continued after tax reliefs were steadily chopped !! and one became totally exposed to the stock market. ... Hey Ho ! Glad to be free of the big M
I have managed to convert approx 60% of the mortgage to repayment but that is all i can afford at the moment.pipme said:Is there any one unfortunate enough, to have one of those now ?
Years ago they were the biz, tax relief on the insurance component and the interest - which was a constant throughout the loan given no rate changes - at one's highest rate = relief on the whole monthly repayment, plus the bonus earnings at the end ... I just do not understand how that type of mortgage continued after tax reliefs were steadily chopped !! and one became totally exposed to the stock market. ... Hey Ho ! Glad to be free of the big M
It has doubled the repayments!
At least you are paying something off the capital and not just lining some fat dastard's sky rocket ....
Make sure you incorporate rate changes when they happen, and not yearly on an 'averaging' method .. Keep it simple and easy to audit !!
The increase in repayments probably illustrates the difference between real repayments and pie in the sky stuff ....
Make sure you incorporate rate changes when they happen, and not yearly on an 'averaging' method .. Keep it simple and easy to audit !!
The increase in repayments probably illustrates the difference between real repayments and pie in the sky stuff ....
Thanks for the advice pip, the new arrangement is reviewed monthly so any changes are with immediate effect it is also one of those trackers that goes down aswell as up but with the option to pull out at any time and the rate has started off at the bank of england rate which is much lower than the mortgage societies base rate so i actually ended up better off (recently reviewed, conversion was set up beforehand) to the tune of £50 a month, now that doesn't happen much these days!pipme said:At least you are paying something off the capital and not just lining some fat dastard's sky rocket ....
Make sure you incorporate rate changes when they happen, and not yearly on an 'averaging' method .. Keep it simple and easy to audit !!
The increase in repayments probably illustrates the difference between real repayments and pie in the sky stuff ....
I'm quite happy with the new deal as it stands at the moment but you always have that niggling feeling that you don't get something for nothing but as far as i have enquired there are no catches, no buy out clauses?
just a lower rate
I should have had it paid off years ago but in the eighties with the way things went i struggled to pay the payments and had to remortgageand lengthen the term several times just to stay afloat( one of the reasons i'm so angry with the previous government of the time), in recent times i've been able to afford more towards the payments and so am trying my best to phase out the endowment side of the mortgage, although the policies are so far gone now that it wasn't worth cashing them in early so i've kept them going in the hope that i may get some return.pipme said:Just partaking a glass of 'Peppermint Schnapps' on the strength of mortgage past -- dastard thing !!
Many years outstanding Kroned ? (hope not 'kroned' too !)
not planning on getting very much but hopefully it will be more than what the rip off endowment buying companies would offer.
Tis a sad old game, with worse to come I am sure.
Notice the rhetoric concerning 'not buying house for pension purposes' ... I get very twitchy when this Govn starts issueing such, almost throwaway warnings -- I feel tis more of a threat -- So I guess there is legislation being worked on to crush more dreams -- not too far in the future !!
P
Notice the rhetoric concerning 'not buying house for pension purposes' ... I get very twitchy when this Govn starts issueing such, almost throwaway warnings -- I feel tis more of a threat -- So I guess there is legislation being worked on to crush more dreams -- not too far in the future !!
P
