View Poll Results: What's the approach to your mortgage?

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  • Forget it until remortgage time

    18 33.33%
  • Overpay

    17 31.48%
  • Invest / save

    3 5.56%
  • Balance overpaying and investing

    3 5.56%
  • Offset

    5 9.26%
  • Mortgage free and luvin' it

    8 14.81%
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Thread: Mortgages: Pay down / Save / Offset?

  1. #151
    Quote Originally Posted by hobbit View Post

    The bigger issue is gifting a house to avoid getting hit with nursing homes, which can secure your assets to pay the bills.
    And I think that's the one people don't think of until it gets to the point that their olds are frail as you rightly point out. And then it can be construed you did it to avoid paying for care yourself.
    I'm arresting you for murdering my car you dyke digging tosspot

  2. #152
    Quote Originally Posted by Gary Kinghorn View Post
    And I think that's the one people don't think of until it gets to the point that their olds are frail as you rightly point out. And then it can be construed you did it to avoid paying for care yourself.
    ... which is why people do it

  3. #153
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    Quote Originally Posted by Nige View Post
    They haven't got a fixed 5 year friends and family low interest mortgage?
    Could be.
    It's literally a Diamond shaped Hell at times
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  4. #154
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    Quote Originally Posted by Diamond Hell View Post
    Could be.

  5. #155
    Quote Originally Posted by Kev_G View Post
    With recent events at home I have been looking more and more into a second property. Currently have mine in my name and Rent the mrs house out that is in her name. In the future we will look at selling one and buying together. Ideally we will sell hers when required / once the tenants have left, as mine will rent easy due to location (I generally get a knock on the door every other month asking if its for sale / for rent regardless) so see no issues with it.


    Kick in the privates last week we have been informed no more staff mortgages as of mid year 2019. No idea why or what's gone on but big blow as the rate was ridiculous like 0.75%!
    staff mortgages were shit any way so why's that a kick in the bollock. nobody took them. you realise the rate was .75% up to 4 times your basic then you have BIK to pay too.

    BIK calcs that HMRC use base on the whole mortgage not just the staff rate element. and pretty sure still worked on an assumed rate of 3%-3.5%. don't believe the hype it was never good. The only ones who won were the old staffers from he 90's where lloyds fecked up the system and left them all on staff rate when they left, best bit was most were on Consent to let.

    All I know is the next year is all about Buy to lets and how the PRA are shitting themselves about a lot of lenders exposure. expect a lot of changes especially with Consumer Buy to lets (ie lets not sell our house when we move and rent it out cos theirs gold in that renting lark as Debbie told me and I saw something on line). Brexit is shitting a lot of lenders up too and if lending stops the merry go round will quickly fall over.

  6. #156
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    Jan review time!

    2018 was an 'interesting' year, being a newish dad has changed my view and priorities...

    The good (yes, this is willy waving, yet it sets the scene and at least I don't mention numbers):
    • We own half the house vs. the conservative chartered surveyor valuation from the remortgage in 2016. This helps me mentally more than financially. It also means we could survive a 30% drop in house prices and still get a decent LTV and access to the lower rate mortgages.
    • Our combined pension pots are greater than the remaining mortgage. Again, an emotional boost rather than financial. Who knows if this will last the way things are going :D. Debt is real and until you cash out pensions are paper/theoretical.
    • I built a simple financial model and it allows me to monthly track our assets, liabilities, outgoings, incomings, and net worth. These are then used to model and set future goals. It's very basic, Hobbit would hate it. I've used it to help establish and test goals for 40 and 45. In the hope what gets measured gets done (paraphrasing P. Drucker, and yes, I am a geek)
    • We hit a personal goal a little early and that allowed me to buy the 996. That and a few things suggested living for the now a little more might not be such a bad thing.
    • My salary has grown a little. When the remortgage comes in 3 years, I'm within 1-2% of being able to pass a remortgage test on just my salary. Or, phrased another way, I have 3 years to add 1-2% to my salary or (to hedge my bets I'm going with 'and') save the required amount to pay down the mortgage to 3.5x.

    The not so good:
    • We've not managed to overpay the mortgage, I've chosen to invest rather than overpay. Overall this has worked out, in some specific cases not so much...
    • A significant investment is down 40%, it's not quite that black and white (I'm allowed to add some dramatic effect to make this post more interesting) and it's all a paper loss I'm hoping to avoid realising.
    • I tried stooging and discovered I don't like it. I've made £2k from it and don't want to cash out, I like the good bits and dislike the additional debt (who'd of predicted that...). Now I am paying it off instead of investing at a time investing 'could be cheap'. Warren Buffet would give me a bollocking "Be fearful when others are greedy and greedy when others are fearful.". It's not big numbers and the above return is despite the recent activity. It sound obvious reading it back, the £2k money for nothing actually comes at a high emotional cost and serves as a reminder to keep things simple. It also reminds me of the saying "No one got rich collecting air miles".

    Hobbit is going to hate all of the above as they are conflicting things/too basic/too simplified but I am still interested in his viewpoint as it's made me to think in different ways and has helped as has everyone else's contributions to the thread (thanks :D).

    My main focus has been net worth and ensuring I've done the best I can for SC and Fern (ignoring buying a selfish 996 and going racing). I still think I can afford some risk and invest vs. pay down debt because I am in my 30s and theoretically still have time. I have significant life insurance and family income benefit (FIB) should that not be the case. However, a few things have become clearer. Long-term we're doing well, mid-term good, short-term OKish. And, when the chips are down, short-term is where the emotional element comes into play more. So, for 2019 I'm changing our approach and focusing on paying debt down.

    To bring this back on track to the original mortgage topic... Very glad we fixed for 5 years and have 3 years fixed remaining to ride out. With hindsight, slightly sad we haven't overpaid (feel free to say I told you so :D). With my 'new dad less risk-averse' head on, I'm starting to see the benefit of fixing for 5 years and using an offset mortgage to get some flexibility during that time.

    My willy waving comment was tongue-in-cheek, I use these posts as a way to get feedback and to gather my thoughts. I hope it helps others. I wish I'd read more threads like this and the pension one when I was in my late teens/20s and I am keen to see what the slightly older and wiser NL members do/have done/think.
    Last edited by Brando; 04-01-2019 at 09:19 AM.
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  7. #157
    Regular Nige's Avatar
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    whats stooging ?

  8. #158
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    I'm the other Neil, so I'm very pleased for you. I think.
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  9. #159
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    I had to google Family Income Benefit as well as Stooging.

    I'm getting old.



    I don't get why you would feel a bit down at not paying down some of the mortgage if you've made money elsewhere. Can you not just look at it like a set of scales? I think for me (if I were in your position) I'd want to be in a position where I can take either a mortgage payment holiday for a few months if something really unforeseen happened or had the money sat somewhere that I could use to keep paying said mortgage and household bills etc. (You may have this covered elsewhere in the thread so apologies if that's the case)
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  10. #160
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    Quote Originally Posted by Nige View Post
    whats stooging ?
    A bad idea...

    It was popular in the 00s, you take out an interest-free credit card for the longest duration and highest value you can stomach. Then invest that money (any way you like/can live with the risk of) while making the minimum repayment on the card. When the interest-free period is up, you balance transfer the amount to another card and start again (possibly borrowing even more if you can/can cope with it). In theory, you can do it across multiple cards and build up quite a pot.
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  11. #161
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    Quote Originally Posted by Brando View Post
    I wish I'd read more threads like this and the pension one when I was in my late teens/20s and I am keen to see what the slightly older and NL members do/have done/think.
    I think most of us didn't know what we were doing financially when we started work. I had input from my parents and I've had a discussion with both Matt and Cat about their finances, credit cards, spending within your means and when loans are worth taking.

    It's all general details but hopefully it helps.


    I absolutely agree with the live for today and plan for tomorrow mentality. I'm not one to spend every penny each month and be desperate for the next wage, but on the flip side I don't save everything either.
    We massively overpaid our mortgage. Having experienced 15% mortgage rates we knew that we could overpay when they were in single figures and it would give a long term benefit which it did.

  12. #162
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    Quote Originally Posted by Neil Mac View Post
    I'm the other Neil, so I'm very pleased for you. I think.
    Sorry, Neil :D, I drafted the post off the Forum and Hobbit is Neil to me more than Hobbit :D. I should amend that.

    Quote Originally Posted by Dave B View Post
    I don't get why you would feel a bit down at not paying down some of the mortgage if you've made money elsewhere. Can you not just look at it like a set of scales?
    That, for me, is the big learning point or shift in my thinking. I've increased our net worth more efficiently than if I'd cleared debts. Mathematically we've come out up (for the moment). But, I think I'd of increased my happiness more by paying debt down. So I am changing tactics, for a bit...

    Quote Originally Posted by Dave B View Post
    I think for me (if I were in your position) I'd want to be in a position where I can take either a mortgage payment holiday for a few months if something really unforeseen happened or had the money sat somewhere that I could use to keep paying said mortgage and household bills etc. (You may have this covered elsewhere in the thread so apologies if that's the case)
    I have an emergency fund, but it's also shared with covering crashing a C1, the 911 blowing up, a daily blowing up (see T4 Caravelle fun) and gets borrowed from to fund car bits and bobs. You're right, I need to improve this in 2019. Further down the road, I think the offset mortgage would help because we could use the offset as the emergency fund and overpaying/additional saving wouldn't lock money away, it'd just reduce our interest cost. Which would also help (emotionally :D) offset the slightly riskier investing approach of our setup, and allow me to have more confidence investing at trickier times (when some of the longer-term value is baked in by buying things at a lower price because of the chaos/market drop).
    Last edited by Brando; 04-01-2019 at 09:33 AM.
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  13. #163
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    Quote Originally Posted by Nige View Post
    I think most of us didn't know what we were doing financially when we started work. I had input from my parents and I've had a discussion with both Matt and Cat about their finances, credit cards, spending within your means and when loans are worth taking.

    It's all general details but hopefully it helps.


    I absolutely agree with the live for today and plan for tomorrow mentality. I'm not one to spend every penny each month and be desperate for the next wage, but on the flip side I don't save everything either.
    We massively overpaid our mortgage. Having experienced 15% mortgage rates we knew that we could overpay when they were in single figures and it would give a long term benefit which it did.
    It's not covered enough in school and culturally we're not encouraged to talk about money etc, or view it as willy waving etc etc. I've learned a lot from chatting to people about it, reviewing things, and making mistakes like Stooging. I hope this is a way to share some of that and keep all of that good stuff going too.

    Living for today vs. saving/long term is an interesting one, I've definitely prioritised the future a bit too much and therefore weakened the now. I'm trying to address that, hence going racing, buying a 911, sorting the garden, and trying to spend as much time as possible with Fern vs. worry about my career for the moment. BUT... I couldn't have done all those things if I hadn't set some of the other stuff up and automated a lot of our setup first. So I am very grateful for what I've done and the opportunities I've had. In hindsight, it's all too easy, and for sure I'd of done things differently. Yes, Ed is very right, I over think things :D
    Last edited by Brando; 04-01-2019 at 09:37 AM.
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  14. #164
    Regular Diamond Hell's Avatar
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    I've sold both my houses, banked the equity from one, used some of the equity from the other to pay for planning bills (so far), lived in a pikey caravan for 15 months and am basically taking a series of what many would consider stupid gambles, trying to build a couple of businesses.

    I have probably gone completely off-piste from what I *should* be doing, but I honestly have no idea what that was anyway.

    I do like cars.
    It's literally a Diamond shaped Hell at times
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  15. #165
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    Quote Originally Posted by Brando View Post
    It's not covered enough in school and culturally we're not encouraged to talk about money etc, or view it as willy waving etc etc.
    Oh, don`t get me started

    Lou works in school and we`ve talked about this a lot. For example a simple lesson once a week where the kids get monopoly money, have to buy sweets toys etc and can borrow to buy now and pay more or save and buy later could easily get the idea of loans across. You could cover the basics of running a house with costs and so on whilst keeping it simple.

    It`s a huge gap in education imo

  16. #166
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    Quote Originally Posted by Brando View Post
    It's not covered enough in school

    Living for today vs. saving/long term is an interesting one, I've definitely prioritised the future a bit too much and therefore weakened the now. I'm trying to address that

    Quote Originally Posted by Nige View Post
    Oh, don`t get me started

    Lou works in school and we`ve talked about this a lot.
    It`s a huge gap in education imo
    ALL kids should get basic money education. Build it into maths lessons if you must but the whole country is mad. Yesterday on the radio heard an advert for a credit card obviously aimed at the very low paid and those with adverse credit...39.9%. Great for those who've just overdone Christmas due to pushy media and a lack of thinking on their part....so in 12 mths they'll be further back with a whole new Christmas to pay for.
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  17. #167
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    I was fortunate enough to come in to a reasonable lump sum so reduced the outstanding mortgage by approximately 25% when remortgaging. I remortgaged in March on a 5 year fixed for a semblance of peace of mind, already in a low LTV band so remortgaging at a shorter time frame would give little benefits with regards to this aspect.

    I continue to overpay the mortgage (allows for future payment holidays if required and pays down debt).

    In other areas I have upped pension contributions, altered pension investment areas and taken an overview of where I am/want to be.

    Plans are:

    -Maintain current rough level of mortgage overpayment.
    -Continue to pay nominal amount into premium bonds for car buffer/easy access with some "thrill" of the draw.
    -Marginally increase pension contribution further.
    -Reallocate some previous poorly chosen pension assets which didn't grow (but haven't slumped in the current down turn).
    -Start some form of long term investing strategy, likely some ISA wrapped global equity tracker fund for another longer term pot of money, but one that still has some access, to give options in 5 years when remortgage/pay off mortgage/kitchen extension may all be considered.

    The threads on here got me thinking about the combination of all the above. I think at least by being active in your financial decisions/planning you are likely to do better than someone who disregards it. Obviously there are many ways to skin a cat, horses for courses etc but I have enjoyed the series of threads around this.

    I have also recently/finally got engaged, so will be considering the cost of the (big) day, and educating the future Mrs In Yorkshire (she already lives here though ) in financial thinking and planning. And also encouraging/supporting her through her professional qualifications to further secure our futures/increase my chances of living in the alps/fishing/surfing/generally not working too much!
    Last edited by Tim in Yorkshire; 04-01-2019 at 10:21 AM.
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  18. #168
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    Quote Originally Posted by Tim in Yorkshire View Post

    I have also recently/finally got engaged, so will be considering the cost of the (big) day....
    To be legally married, costs start at around £120. That covers fees for the notice of marriage (£35 for each partner) and a brief registry office service on a weekday.

    Bar snack and two beers apiece....£200 tops is easily achievable.


    Oh, and congratualtions
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  19. #169
    Regular Darren Langeveld's Avatar
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    Quote Originally Posted by Diamond Hell View Post
    basically taking a series of what many would consider stupid gambles, trying to build a couple of businesses.

    I have probably gone completely off-piste from what I *should* be doing, but I honestly have no idea what that was anyway.

    I do like cars.
    I'm with him.

  20. #170
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    Quote Originally Posted by Brando View Post
    I've learned a lot from chatting to people about it, reviewing things, and making mistakes like Stooging.

    Why do you see it as a mistake? Did you not make a return or is the problem just the emotional one of taking on debt?

    I've had upwards of 20 creditcards on the go in the past, especially prior to the introduction of transfer fees. You could easily have £100ks of someone else's money costing you 0% that you can earn with. As long as you can cash out and aren't in -ve with them I don't see what the problem is.


    I have friends that bought large houses this way. £100ks on CCs on 0% interest. As I say, harder now transfer fees exist.

  21. #171
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    FWIW I have none at the moment as I'm looking to remortgage in the next month or so and don't want the 'debt' on my profile.

  22. #172
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    Quote Originally Posted by ste View Post
    As long as you can cash out and aren't in -ve with them I don't see what the problem is.
    I'd have sleepless nights over that 🤣 the whole gamble is not being in the - ve.

  23. #173
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    Quote Originally Posted by Tim in Yorkshire View Post
    The threads on here got me thinking about the combination of all the above. I think at least by being active in your financial decisions/planning you are likely to do better than someone who disregards it. Obviously there are many ways to skin a cat, horses for courses etc but I have enjoyed the series of threads around this.

    I have also recently/finally got engaged, so will be considering the cost of the (big) day, and educating the future Mrs In Yorkshire (she already lives here though ) in financial thinking and planning. And also encouraging/supporting her through her professional qualifications to further secure our futures/increase my chances of living in the alps/fishing/surfing/generally not working too much!
    Congrats, Tim :D. I like your plans! I'm still formulating mine but yours are very SMART: https://www.projectsmart.co.uk/smart-goals.php


    Quote Originally Posted by Darren Langeveld View Post
    I'm with him.
    Yeah, your alternative Peugeot investment strategy appeals. Hence my keeness to create a good financial base to do more interesting things from.

    In reply to DH too, loving cars is both a blessing and a curse. Tony and I were discussing this the other day, without cars I'd have few financial concerns. But neither of us would swap/go and just buy a Passat and be done with it.

    Quote Originally Posted by ste View Post
    Why do you see it as a mistake? Did you not make a return or is the problem just the emotional one of taking on debt?
    A mistake for me personally, as soft as it is to admit out loud, the emotional toll and sleepless night element aren't worth it for me. Same conclusion as in my reply to Dave. I've got to a point where I'd rather see my net worth grow less vs. paying off debt. Not quite at the point where I want to sell everything off, clear all my debts, and start again :D. But Stooging isn't for me and I want out and to reduce the mortgage a bit before I start anything else.

    Edit: With an offset mortgage we may revisit this as that's 0 risk.
    Last edited by Brando; 04-01-2019 at 12:00 PM.
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  24. #174
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    Yeah fair points. I've realised over the years that my risk appetite is larger than others'.



    Quote Originally Posted by Brando View Post

    In reply to DH too, loving cars is both a blessing and a curse. Tony and I were discussing this the other day, without cars I'd have few financial concerns. But neither of us would swap/go and just buy a Passat and be done with it.

    Meh, cars don't need to cost anything. Maybe it's relevant to my risk appetite but I'll gladly buy and run something fun with a view to making a few K on it. It's more fun than most other investments too.

  25. #175
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    Quote Originally Posted by ste View Post
    Maybe it's relevant to my risk appetite but I'll gladly buy and run something fun with a view to making a few K on it. It's more fun than most other investments too.
    Don't think any of my shitters have ever pulled that off (to date), so I have a (relatively) low risk attitude towards buying cars.

    I think I doubled the purchase price on the Alfa 166, but from £250 with no MOT, that wasn't too hard.

    Anyway - mortgages: more serious than cars.
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  26. #176
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    Not much more to add to the thinking here, but a reminder to stress test your plan. What if you have another sprog and one of you takes 12 months off again.. what if the next round of IBM axing means you're out of work for 3-6 months & you're the main income source.

    As I've recently found out, stuff does come out of the blue, I'd made a small investment literally *that morning* that I'm tied into for a while that could easily have been the difference between paying another months mortgage or not if there wasn't a slush fund for the unexpected.
    Simon no longer owes me anything, Dave does though.
    Floyd probably owes me at least twenty with the interest rolling up...

  27. #177
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    Current trend of the stock market had me realign my strategy s couple of weeks ago. Rather than sticking all excess into a fund and a small token overpayment Iíve flipped things round for a bit. Worst case is that I may miss out on the difference of the mortgage % and what the fund might make. I can live with that.

    Realised today that currently mortgage will be gone in 16 years assuming I donít overpay or move house...

    I suspect Iíll be paying something off until Iím 60.
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  28. #178
    Quote Originally Posted by Brando View Post

    Hobbit is going to hate all of the above
    Am I? Iíve read your post and tried to work out why...

    Only things Iíd say:

    - I donít believe in pensions and the more I see about the future, the less I believe in them

    - If we now had the ďdown turnĒ thatís been predicted I wouldnít be surprised. The next few years are surely going to be filled with uncertainty and i canít imagine why anyone would feel bullish about investments right now

    So I guess if it was me, Iíd have been overpaying as much as poss and not bothering with investments or pensions

    But thereís a reason why the top traders each year arenít there the next year..... thereís a lot of luck involved. You could easily be sitting on positive investments


    I canít see house prices tumbling purely because of the ridiculous situation we have gotten into. So much would go wrong if house values dropped significantly that itís a big like a bank failing - they almost canít fail

    Similarly I donít see risk free rates increasing, so the market return on investments wonít increase

    Therefore itíll only be high risk trading that sees high returns

    And we are there anyway... the amount of PE money ploughed into startups is obscene

  29. #179
    All very interesting reading. I'd go greyer, if that was possibly thinking about this stuff to the depth that you do Olly

    My pension fund isn't the best, in fact massively far from it based on the final salaries / huge percentages you guys and your employees are putting in. My salary isn't that great either. However I've worked at my company for nigh on 25 years. Within the next few months my mortgage will be paid off and to Mr Stannah I shall be eternally grateful for that.

    I don't have massive inheritance coming my way. Probably enough to buy something small to rent out providing a top up to our pensions. That should mean the kids have a house each - or there abouts when Emma and I pop off. I think that's a fair lump for them.

    From a retirement perspective I will have what I have. I won't be able to live an extravagant life and I'll doubtless be driving a 1ltr fiesta, or such like.

    If I get there and can have the odd meal out, a small break away each year and not worry about the heating bill etc then so be it. I'd love to say I'll be driving my Ferrari to Monaco and such like, bit that isn't going to happen, so I'm not going to stress about it. Based on what Emma and I earn we have lived for today and enjoyed it. Made a good few mistakes and less good decisions. However we have a fabulous family, great friends and some great memories.

    I'm in the live for today and don't stress too much about tomorrow, because who knows what will crop up between now and then camp
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  30. #180
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    Do you know Gary, looking at some worrying about pensions/investments etc, I reckon you have the balance right at the moment. Lots of stuff done with your family each and every year.
    ( I still find peoples views of 'small/massive inheritance' interesting. Up North, I reckon most would think that any inheritance capable of buying a small house to rent out would be like winning the lottery)

    Keep at what you're doing and how you're doing it I'd say. (But maybe free up some cash by flogging those old sheds at UBs yard)
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  31. #181
    Quote Originally Posted by Dave B View Post

    Keep at what you're doing and how you're doing it I'd say. (But maybe free up some cash by flogging those old sheds at UBs yard)
    TV went on the blink last night, so had to go and buy another one today. That's half my bonus gone, easy come, easy go

    And I had a twenty pound note in my wallet this morning. I considered how best it would benefit my portfolio, prior to investing it in to a breakfast for Alfie and I at a local establishment With the cold nights around the corner I decided some additional winter padding was a good move
    Last edited by Gary Kinghorn; 05-01-2019 at 01:22 PM.
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  32. #182
    Quote Originally Posted by Dave B View Post
    Do you know Gary, looking at some worrying about pensions/investments etc, I reckon you have the balance right at the moment. Lots of stuff done with your family each and every year.
    Absolutely. Some people have very little and are far happier with that than others who have tons of stuff but donít seem to have found people or activities or interests that satisfy them

    If you have enough to do what you like doing, then you have enough

  33. #183
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    Quote Originally Posted by hobbit View Post
    If you have enough to do what you like doing, then you have enough
    I have enough to do what I want (within reason) but my pension situation is not good.
    All my eggs are in one basket for now, but at least I'm aware of that.

    I've made some mistakes along the way, and I can now see how naive some of my decisions were, but I have a good chance of making up for it, so I'm OK with that.
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  34. #184
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    Not much to add other than I enjoy the discussion on these threads, food for thought on your own situation, interesting to see other members approach to risk, debt, investments, 'live in the moment' vs 'save for a rainy day' etc.

    I keep things pretty simple, considerably overpay the mortgage while the going is good, keep a decent chunk for a rainy day but holiday hard while I'm physically capable of getting to places I want to see. I'd rather drive a go-kart around Tokyo dressed as Mario than live in a bigger house

    Hope 2019 works out well for everyone in terms of finances, work/life balance etc. but mainly health and happiness
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  35. #185
    Regular Floyd's Avatar
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    Got a letter from my mortgage lender on Friday. My 5 year fixed is coming to en end in April and I am now shopping around. My lender wants me to renew with them and they have a great rate for another 5 year fixed, which they will start now without penalty. Seems a good option, especially as it removes uncertainty from post Brexit rates going up. Rate is 1.9% - I don't think I'll get much better, but it can get a whole lot worse.

    I like the certainty of fixed rate. I remember the 15% days too...
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  36. #186
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    Quote Originally Posted by Floyd View Post
    Got a letter from my mortgage lender on Friday. My 5 year fixed is coming to en end in April and I am now shopping around. My lender wants me to renew with them and they have a great rate for another 5 year fixed, which they will start now without penalty. Seems a good option, especially as it removes uncertainty from post Brexit rates going up. Rate is 1.9% - I don't think I'll get much better, but it can get a whole lot worse.

    I like the certainty of fixed rate. I remember the 15% days too...
    I had similar 1.5 years ago. Mortgage company (Santander) came direct to me with options about 3/4 months before out fixed rate ran out. Spent a weekend shopping around and spoke to my broker. The offers from Santander were stiil the best offer we could get.

    Clicked through the link and select our new mortgage. couple of days later a letter arrived for us to check and sign. Email received the day after we sent it back to confirm receipt and access to a portal to check progress. 1 day later another email received to say it was completed.

    Couldn't believe how easy it was. No further documentation was needed to be sent etc.
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  37. #187
    Regular Floyd's Avatar
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    Ah yes, thanks Dan. We are with Santander too. I'll check out the portal site.
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  38. #188
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    Interesting reading, thanks all for sharing!

    Hobbit, I figured you'd be annoyed at lack of details, vagueness, and overly simple 'model' :D and I don't think the market will drop 30-40%. I've 0 idea on anything that is going to happen :D. Like Stevem suggests, I stress test our plans with a 40% drop and 9% interest rates. Beyond both, we'd have to look at other options (longer term on the next mortgage, interest only to ride out and regroup, sell other things etc etc etc). All contributing to...

    The more I think about it and read comments the more I realise I could simply have said "I'm not happy with my current approach and therefore need to try this instead".

    Edit:

    My plan was to go with one company for the current mortgage, then pivot to our current account bank for a tracker or fixed 5 year again, depending on interest rates/what's going on in 3 years. The better deals seem to go to people who switch and our broker found a better deal with who we went with. With each remortgage getting less and less significant as the value goes down (and hopefully net worth goes up :D). However, that seems to have come to an end with banks & building societies wanting to hang on to 'good' mortgages. AND, my bank really pissed me off the other day by trying to fleece us on something and I now wouldn't trust them with our mortgage + happy with current provider. I would love a mobile app that let me check in, see an interest charges break down, and overpay. Figuring that will come in the next 3 years.
    Last edited by Brando; 07-01-2019 at 10:13 AM.
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  39. #189
    Quote Originally Posted by Floyd View Post
    Ah yes, thanks Dan. We are with Santander too. I'll check out the portal site.
    We are with them too and fixed for ten years two years ago. It suited us perfectly as we like to know where we are month on month. Losing my dad late last year and selling his bungalow has put us in the position where we can clear the balance soon. The trouble is the early repayment figure has to be paid and it's substantial.

    Just keep an eye out for that if you have an inheritance coming your way, or potentially likely. Morbid but we didn't think of it and it's costing us now.
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  40. #190
    Funnily enough just had a letter through from our lender saying our fixed rate ends at the end of March also they point out a set of rates that we can possibly get.

    Debating if I should go for a longer term fixed rate of 10years at a slightly higher interest rate versus a 5 year fixed rate at a slightly lower rate. Will probably look at other lenders but staying where we are does save some hassle factors.

    Gary you have a good point on the redemption fee, I guess if you donít want to pay the fee and come into cash you could pay the max extra a year off the balance whilst keeping the rest in some form of saving scheme.

  41. #191
    Regular Floyd's Avatar
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    We'll be going for a 5 year fixed. If there is any windfall then I'll do what Jamie says and just over pay at the max rate and forget about it.

    I just want to lock in a really low rate to remove future rate uncertainty.
    Last edited by Floyd; 08-01-2019 at 07:53 AM.
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  42. #192
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    Quote Originally Posted by Gary Kinghorn View Post
    We are with them too and fixed for ten years two years ago. It suited us perfectly as we like to know where we are month on month. Losing my dad late last year and selling his bungalow has put us in the position where we can clear the balance soon. The trouble is the early repayment figure has to be paid and it's substantial.

    Just keep an eye out for that if you have an inheritance coming your way, or potentially likely. Morbid but we didn't think of it and it's costing us now.

    Iíd check out the small print re the overpayment terms. Typically you can pay 10% of the mortgage value per year so whilst itís not ideal you can pay a chunk off each year.

    If you have a lump sum perhaps get it invested in addition to the above. Buy some premium bonds, open a ĎMarcus accountí etc. You can spread the risk and with overpaying the mortgage you might find a better way than paying the redemption fee.

    Without being too nosey, what is the fee and how much interest does the mortgage cost you each year? With these facts someone smarter than me will be along to provide some empirical evidenced advice but Iíd stick it on a spreadsheet and see what all the options look like. If you have a 10 year rate you are 2 years into at 2% interest rate you could easily Ďmakeí 2% as per my comments above and not pay the bank a fee which is throwing money away.

    Food for thought?
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  43. #193
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    I used the Money Saving Expert calculator to work out if swapping to a lower rate would be beneficial over early redemption penalties.
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  44. #194
    Quote Originally Posted by Floyd View Post
    I just want to lock in a really low rate to remove future rate uncertainty.
    Yes this is pretty much thoughts entirely.

  45. #195
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    Done! All via the web site portal.
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  46. #196
    Quote Originally Posted by Andrewt View Post
    Iíd check out the small print re the overpayment terms. Typically you can pay 10% of the mortgage value per year so whilst itís not ideal you can pay a chunk off each year.
    Hmm... is it? I thought the standard approach is that you can only overpay by 10%

    Eg if mortgage is 500k, and you pay £20k pa, you can overpay by £2k a year

    Otherwise you could overpay by 50k in a given year and benefit from a low fixed rate, but the opportunity to bash your mortgage off in a really short time

    I could be wrong as I havenít had a fixed for ages (im offset) but when I first looked at it, the overpayment amount was smaller than 10% of the total value of the mortgage

    Thatís a good approach if it is 10% of the mortgage as you could lower the total amount to payback significantly, assuming you have a chunky mortgage and the opportunity to bash 10% off for a few consecutive years

    If you have a lump sum perhaps get it invested in addition to the above. Buy some premium bonds, open a ĎMarcus accountí etc. You can spread the risk and with overpaying the mortgage you might find a better way than paying the redemption fee.
    Premium bonds, unless higher rate, are naff. I think Martin lewis did a calculation to prove theyíre the worst investment available

    That said Iíve ignored that on the totally unlikely scenario of a decent payout one month

  47. #197
    My current mortgage deal you can deffinatley overpay to a maximum of 10% of the current outstanding balance.

    I have seen other deals in the past where you can only overpay based on a percentage of the scheduled annual payments.

    Must admit I donít know what is more common of the two above at the minute but will find out when I change my mortgage.

  48. #198
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    Angry

    Last few mortgages I’ve had have allowed 10% of the outstanding value to be paid off each year. I’m currently with nationwide.

    All depends on the rate and the exit fees. Like I said Gary do a spreadsheet and work it out. Happy to help if you aren’t good with spreadsheets.

    Edit no idea why there’s an angry face at the top. I’m not angry.
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  49. #199
    10% repayment of the outstanding balance is really good, assuming the rage for fixed is beneficial

    Assume 500k mortgage on fixed term - lumping off an average of 35k for 5 years (ie with normal payments against the principle, you canít pay 50k in year one) would save at least 150k over a traditional repayment (rule of thumb I use is that you pay back roughly double at current rates of interest, without the worry of higher rates in future, so itís likely more)

    Given the premium for the flexibility of an offset is an extra 1.5-2% on average, unless you can overpay a lot more than 10% than thatís really generous

    I assume itís 10% with no penalty? So itís not like you can overpay by 10% but thereís a 3% fee for doing so?

  50. #200
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    I can repay up to 20% of my outstanding balance each year. But, I don't because I have a fixed low rate mortgage and the funds that could be used to overpay are instead invested at a rate of return that exceeds my mortgage rate.
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