Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: KS Cleaning on December 23, 2020, 12:19:40 pm
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Just a little heads up that if you have taken the SEISS grants, some of the mortgage lenders won’t remortgage for you. I am currently with NatWest and my 5 year fixed deal finishes in March, I phoned them up today to negotiate a new deal and they won’t take my income into account as I’ve received two of the grants. I argued that I have continued to overpay my mortgage repayments by a considerable amount throughout the pandemic, but they were having none of it.
NatWest and I believe others, have a blanket ban on mortgage lending to those who have received grants.
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What are you going to do? Don't they just put you on the standard variable rate after you've come out of a fixed rate?
Dazmond doesn't have these sort of problems :D
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What are you going to do? Don't they just put you on the standard variable rate after you've come out of a fixed rate?
Dazmond doesn't have these sort of problems :D
I will use a broker who will take my business elsewhere. I won’t be going on to their variable rate, I think the variable rate is around 4%, the fixed rate for a 60% LTV without product fees is around 1.7%.......a massive difference.
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NatWest are the worse for this by all accounts. Friend of mine can’t remortgage with them as he declared furlough income on his bank statement to them.
There’s still plenty of lenders that will lend to you so a whole of market broker is your best bet.
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Thanks for heads up but it's a bit late now. 3 years in to a fixed 5 years with Barclays. Suppose a lot can change in next 2 years though. What though, when borrowers jump ship to a lender who will ? Maybe a bad business decision in long run ?
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I wouldn’t worry there will come a point that they will have to start lending money again money is cheap at the moment.
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I claimed the first two seiss grants.
I have just remortgaged with Natwest with no issues at all. Took 5 years fixed at 1.89%. Because I'm already with Natwest for my mortgage I didn’t even have to supply any information at all, zero! I actually did it online via their 'manage my mortgage' portal, couldn't have been more straightforward. I don't even bank with them either. The only thing I can think of which may cause the said issues is the LTV (loan to value). Mine's only about 35/40% so I assume wouldn't illuminate any risk lights. Or, if you are changing provider, then this will always instigate a new application process as far as I'm aware.
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I claimed the first two seiss grants.
I have just remortgaged with Natwest with no issues at all. Took 5 years fixed at 1.89%. Because I'm already with Natwest for my mortgage I didn’t even have to supply any information at all, zero! I actually did it online via their 'manage my mortgage' portal, couldn't have been more straightforward. I don't even bank with them either. The only thing I can think of which may cause the said issues is the LTV (loan to value). Mine's only about 35/40% so I assume wouldn't illuminate any risk lights. Or, if you are changing provider, then this will always instigate a new application process as far as I'm aware.
That’s interesting, how long ago was this Winpro? I was only asking 60% LTV and even then this was to facilitate building an extension. I actually got a letter from NatWest the other week to tell me my deal was ending soon and to avoid going over to the higher variable interest rate to phone them to arrange a new deal. I gave all my personal information but as soon as I said I was self employed and a sole trader the lady asked if I had received any grants, I told her I had the first two but wouldn’t be applying for the third one, she then said she would have to check and soon came back and said only my wife’s salary could be put on the application.
The margins obviously aren’t big enough for the lenders these days, they used to bend over backwards to get your business. Oh well, their loss will be someone else’s gain.
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Thanks for heads up but it's a bit late now. 3 years in to a fixed 5 years with Barclays. Suppose a lot can change in next 2 years though. What though, when borrowers jump ship to a lender who will ? Maybe a bad business decision in long run ?
Yep, NatWest will lose a lot of customers over this. A friend of mine also had his application rejected 2 weeks ago by them. There will be other lenders out there tho, willing to take a punt on the fall out from NatWest.
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I claimed the first two seiss grants.
I have just remortgaged with Natwest with no issues at all. Took 5 years fixed at 1.89%. Because I'm already with Natwest for my mortgage I didn’t even have to supply any information at all, zero! I actually did it online via their 'manage my mortgage' portal, couldn't have been more straightforward. I don't even bank with them either. The only thing I can think of which may cause the said issues is the LTV (loan to value). Mine's only about 35/40% so I assume wouldn't illuminate any risk lights. Or, if you are changing provider, then this will always instigate a new application process as far as I'm aware.
That’s interesting, how long ago was this Winpro? I was only asking 60% LTV and even then this was to facilitate building an extension. I actually got a letter from NatWest the other week to tell me my deal was ending soon and to avoid going over to the higher variable interest rate to phone them to arrange a new deal. I gave all my personal information but as soon as I said I was self employed and a sole trader the lady asked if I had received any grants, I told her I had the first two but wouldn’t be applying for the third one, she then said she would have to check and soon came back and said only my wife’s salary could be put on the application.
The margins obviously aren’t big enough for the lenders these days, they used to bend over backwards to get your business. Oh well, their loss will be someone else’s gain.
It was about 4/5 weeks ago pal and comes into effect on 1st Jan. I also had the letter and email reminders that my current deal was ending too. If I was you, I would go onto their online portal, you just need your mortgage number and a few other basic details. The offers should be there for you. I did actually call too, and the guy started to go into an application, I cut him off and asked him if this conversation would result in anything better than what they offer online. It wouldn't so we ended the call. You can't rely on phone services, many are numpty agency workers in call centres- I had one a few years ago trying to convince me it was my turnover that counted and not my profits!!🤔 turned out to be completely wrong of course.
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I'm with Natwest.I had a mortgage with them and was all set to buy a new house beginning of the year all approved, all paper work done everything fine.
The house I was buying fell through so I found something else and wanted 50k less from them to purchase the new one.I had taken the first grant and because of this it was a real struggle to get approved and a proper fight.They moved my account up to senior under writers and eventually I got it.I had always over paid had a hefty deposit and LTV was good for them and still it was almost imposable.
I know some one had the same problem with Santander but Nationwide approved them no problem and they hadn't had any grants.
If any one has had all 3 or any mortgage holidays.They won't stand a chance for a good couple of years
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If you were asking for 60% of LTV that’s quiet high they will be taking into account the drop in house prices so the % of the LTV will-could increase rapidly.
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They won’t be selling many Mortgages then will they the world and his wife it seems has opted for the Mortgage holiday,and as for first time buyers lol no chance.
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Spoke to a customer he has 2 sons that are pilots he was one himself 1 is a captain and has been kept on by his airline on furlough,the other 1 was due to take his captains exam in May he will probably never work as a commercial pilot again his Dad told me,he’s gone from a potential 90k a year to 21k delivering for Ocado and no chance of a Mortgage they will have to eventually lend money or they will run out of customers.
People remortgaging at the moment are a better bet than any first time buyers.
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Just checked, it was 24th November I signed off on the offer. I waited a while to see if I could get anything better with anyone else, but couldn't within economic reason (once you calculate any fees etc.)
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If you were asking for 60% of LTV that’s quiet high they will be taking into account the drop in house prices so the % of the LTV will-could increase rapidly.
60% LTV isn’t considered high risk
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I claimed the first two seiss grants.
I have just remortgaged with Natwest with no issues at all. Took 5 years fixed at 1.89%. Because I'm already with Natwest for my mortgage I didn’t even have to supply any information at all, zero! I actually did it online via their 'manage my mortgage' portal, couldn't have been more straightforward. I don't even bank with them either. The only thing I can think of which may cause the said issues is the LTV (loan to value). Mine's only about 35/40% so I assume wouldn't illuminate any risk lights. Or, if you are changing provider, then this will always instigate a new application process as far as I'm aware.
That’s interesting, how long ago was this Winpro? I was only asking 60% LTV and even then this was to facilitate building an extension. I actually got a letter from NatWest the other week to tell me my deal was ending soon and to avoid going over to the higher variable interest rate to phone them to arrange a new deal. I gave all my personal information but as soon as I said I was self employed and a sole trader the lady asked if I had received any grants, I told her I had the first two but wouldn’t be applying for the third one, she then said she would have to check and soon came back and said only my wife’s salary could be put on the application.
The margins obviously aren’t big enough for the lenders these days, they used to bend over backwards to get your business. Oh well, their loss will be someone else’s gain.
It was about 4/5 weeks ago pal and comes into effect on 1st Jan. I also had the letter and email reminders that my current deal was ending too. If I was you, I would go onto their online portal, you just need your mortgage number and a few other basic details. The offers should be there for you. I did actually call too, and the guy started to go into an application, I cut him off and asked him if this conversation would result in anything better than what they offer online. It wouldn't so we ended the call. You can't rely on phone services, many are numpty agency workers in call centres- I had one a few years ago trying to convince me it was my turnover that counted and not my profits!!🤔 turned out to be completely wrong of course.
TBH if that’s how they want to treat a loyal customer, I would rather take my business somewhere else.
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I think I know what the issue is.
I'm pretty sure if you want to borrow additional funds then this initiates a new application process. If you simply wish to remortgage, with the same provider then there is no application required. If you go on the web portal you can do both to see without actually committing or applying. It allows you to try various options before you actually go forward with any.
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If you were asking for 60% of LTV that’s quiet high they will be taking into account the drop in house prices so the % of the LTV will-could increase rapidly.
60% LTV isn’t considered high risk
In normal circumstances I agree it’s not high risk but in a very short time that % of LTV could drastically change,they are nothing more than bookies and if they are not lending there’s a good reason,the bookie is not very often proved wrong the same principles apply with these lenders the time the loan is offset with other lenders another couple of times all of a sudden it becomes high risk.
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Same with insurance you have a broker they use an insurer and then it’s insured again by them,the initial risk is increased 3-4 fold so what appears to be low risk quickly becomes medium or high risk certainly at the moment.
Plenty of first time buyers trying to buy at the moment with 30-40k from mum and dad and getting laughed out the bank.
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I think I know what the issue is.
I'm pretty sure if you want to borrow additional funds then this initiates a new application process. If you simply wish to remortgage, with the same provider then there is no application required. If you go on the web portal you can do both to see without actually committing or applying. It allows you to try various options before you actually go forward with any.
Ahh I see, sort of makes sense, good work pal👍 You’d think there would be a bit come and go with that tho eh, and consideration would be made on a case by case basis. Even with the additional funding it would only take me to 60% LTV. I will look at my options in the next week or so.
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In normal circumstances if you want to remortgage you have to go into the branch it’s not like it was before with home improvement loans etc,and if you use the same bank the new loan will run alongside the existing 1.
The whole process like it is for the initial mortgage is required for a remortgage.
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Same with insurance you have a broker they use an insurer and then it’s insured again by them,the initial risk is increased 3-4 fold so what appears to be low risk quickly becomes medium or high risk certainly at the moment.
Plenty of first time buyers trying to buy at the moment with 30-40k from mum and dad and getting laughed out the bank.
That’s because a lot of lenders are insisting that 75% of the deposit comes from the applicants own personal savings, which rules out a large number of first time buyers.....madness!
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In normal circumstances if you want to remortgage you have to go into the branch it’s not like it was before with home improvement loans etc,and if you use the same bank the new loan will run alongside the existing 1.
The whole process like it is for the initial mortgage is required for a remortgage.
No, that’s wrong.
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Yeah it eliminates risk it’s all about risk like I say bookies are the same all large bets are offset and covered in the event of a large loss,with a 75% equity stake in a property they won’t lose with all the fees repossession costs a drop in market value they will still make huge profits.
It’s just like Las Vegas when you go there every Taxi driver you speak to says the same thing,they don’t build all these hotels on winners same with banks they have a branch in every town in the country used to be in most villages a % of a % makes banks £££ on what they lend you.
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In normal circumstances if you want to remortgage you have to go into the branch it’s not like it was before with home improvement loans etc,and if you use the same bank the new loan will run alongside the existing 1.
The whole process like it is for the initial mortgage is required for a remortgage.
No, that’s wrong.
Is it lol are you sure about that.
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At this time I’d like to hear of someone that has filled a form in online and been given a remortgage without going through the whole process like an initial 1,be interested to know.
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In normal circumstances if you want to remortgage you have to go into the branch it’s not like it was before with home improvement loans etc,and if you use the same bank the new loan will run alongside the existing 1.
The whole process like it is for the initial mortgage is required for a remortgage.
No, that’s wrong.
Is it lol are you sure about that.
I’m positive about that, the remortgage does not run alongside the original one. In normal circumstances you don’t have to go into a branch to remortgage either.
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At this time I’d like to hear of someone that has filled a form in online and been given a remortgage without going through the whole process like an initial 1,be interested to know.
Here, me. It took 10 minutes. They then send you the new agreement via email and you sign it electronically. They then send you a confirmation email a little while after that. However, this was for a straight remortgage, with current lender and no additional borrowing.
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I think I know what the issue is.
I'm pretty sure if you want to borrow additional funds then this initiates a new application process. If you simply wish to remortgage, with the same provider then there is no application required. If you go on the web portal you can do both to see without actually committing or applying. It allows you to try various options before you actually go forward with any.
Ahh I see, sort of makes sense, good work pal👍 You’d think there would be a bit come and go with that tho eh, and consideration would be made on a case by case basis. Even with the additional funding it would only take me to 60% LTV. I will look at my options in the next week or so.
These things can be a pain and often different lenders have differing criteria. Loyalty hasn't been rewarded for some years now, in fact, it's often been detrimental from a financial point. The important thing here is to get the best rate you can for your own circumstances. I spent quite some time searching the market before committing to my current lender. Good luck👍👍
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Sorry I must have missed something here are you just talking about negotiating a new rate with the lender because if this is the case it’s a completely different scenario,any additional borrowing is different.
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As for loyalty with any lender high street independent etc you’ll get 0 why would you expect it,if there’s anything life’s taught me it’s that it doesn’t exist when ££s involved.
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Sorry I must have missed something here are you just talking about negotiating a new rate with the lender because if this is the case it’s a completely different scenario,any additional borrowing is different.
Yes, once your current discounted rate comes to an end. 👍
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Mortgages are so last year
Although I am 106 years old
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Sorry I must have missed something here are you just talking about negotiating a new rate with the lender because if this is the case it’s a completely different scenario,any additional borrowing is different.
Yes you will have missed something if you didn’t bother to read the OP😉
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Same happened to me was purchasing a new house and borrowing another 30k they said no after finding out I claimed first grant, went to a broker found a better deal with Halifax who offered me another 8 k to borrow on top of the 30 but downside was paying an early exit fee with NatWest for nearly 7k that hurt
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Same happened to me was purchasing a new house and borrowing another 30k they said no after finding out I claimed first grant, went to a broker found a better deal with Halifax who offered me another 8 k to borrow on top of the 30 but downside was paying an early exit fee with NatWest for nearly 7k that hurt
Ouch!!! The Halifax which is part of the Lloyds group, seem to be the go to lender at the moment. NatWest have well and truly shot themselves in the foot.
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NWH please, just stop posting. At this point you are just typing utter rubbish, please just stop.
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NWH please, just stop posting. At this point you are just typing utter rubbish, please just stop.
Lol we’ve got a few properties in the family and we don’t live in all of em so I’ll stop typing 🤣.
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NWH please, just stop posting. At this point you are just typing utter rubbish, please just stop.
Lol we’ve got a few properties in the family and we don’t live in all of em so I’ll stop typing 🤣.
That’s surprising given that you don’t know how remortgaging works🙈 I suppose you bought them cash😂
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NWH please, just stop posting. At this point you are just typing utter rubbish, please just stop.
Have you only just noticed?
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
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Keep posting NWH, I for one find your posts very informative!!
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
Because Kev , not everybody is in such a fortunate position as you to facilitate that.
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Spoke to a customer he has 2 sons that are pilots he was one himself 1 is a captain and has been kept on by his airline on furlough,the other 1 was due to take his captains exam in May he will probably never work as a commercial pilot again his Dad told me,he’s gone from a potential 90k a year to 21k delivering for Ocado and no chance of a Mortgage they will have to eventually lend money or they will run out of customers.
People remortgaging at the moment are a better bet than any first time buyers.
That's nearly always been the case ::)roll.
And that sounded like a nightmare job; with three planes on the drive.
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? ???
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
Because Kev , not everybody is in such a fortunate position as you to facilitate that.
What a ridiculous statement, I struggled the same as the next man! I have also been through very high interest rates up to 15% in some cases. I was taught to only buy what you could afford to pay for in the bad times, the good times were a bonus.
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? ???
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What! So who do you think is paying the other 3%? The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.
Its exactly the same as when you take out a Bank Loan and they say "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you? ::)roll
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? ???
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What! So who do you think is paying the other 3%? The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.
Its exactly the same as when you take out a Bank Loan and they say "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you? ::)roll
Lower interest means you pay less, both monthly and in total. The interest is not 'deferred' at all, it's set, that's the 'deal'.
Who do you think pays it Kev?
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? ???
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What! So who do you think is paying the other 3%? The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.
Its exactly the same as when you take out a Bank Loan and they say "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you? ::)roll
When you go on a fixed term of say 5 years the interest rate can be around 1.5%, after the 5 year term if you don’t remortgage you would then go on to their variable rate which will be around 4%. So by remortgaging you are constantly on the lower fixed rate. The Bank of England base rate is 0.1% at the moment and has been under 1.0% for many years now, so no one should be paying a mortgage at 5%.
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? ???
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What! So who do you think is paying the other 3%? The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.
Its exactly the same as when you take out a Bank Loan and they say "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you? ::)roll
Are you actually being serious? I don’t even know where to start with that.
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I reckon Kev must a serious hangover. I can only think he's replying to the wrong thread!🤔😆
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Person A
Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.
Person B
Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.
It can’t be any more simple than that 😂
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Person A
Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.
Person B
Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.
It can’t be any more simple than that 😂
Now try calculating it in reality
Do a real example for both a fixed rate and a variable rate and include all the set up fees, early exit fees and all the other hidden crap for the fixed rate. Then when you have finished do another comparison at the end of the fixed period and see who owes the most on their property and then compare it a further month down the road when Mr Fix pays all the fees again and off you go again. Now calculate it 2 or 3 times assuming they have both moved and tell me where you are.
I am not disagreeing that a fixed rate is not cheaper for MONTHLY PAYMENTS but if you want to move house early, repay more, or anything else the fees are ridiculous. If you have an £800 a month payment on a variable rate over 25 years and you can manage an additional £100 a month you reduce your term by nearly 20% that's nearly 5 years quicker your mortgage is paid off. Banks and Building Society's don't lose money with Fixed Rate Mortgages they make more money that's why they do it. Try to get a genuine Variable Rate Mortgage linked to BOE Base Rates with a daily rate of interest if you don't believe me.
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im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!
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The way lenders are able to provide fixed rate deals is by securing money from the market based on long term projections for interest rates, so their cost in providing the mortgage is already fixed.
I have never had a fixed rate mortgage (now mortgage free) but for many it comes down to whether you prefer the security of fixed monthly payments. my last mortgage was a tracker.
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Person A
Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.
Person B
Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.
It can’t be any more simple than that 😂
Now try calculating it in reality
Do a real example for both a fixed rate and a variable rate and include all the set up fees, early exit fees and all the other hidden crap for the fixed rate. Then when you have finished do another comparison at the end of the fixed period and see who owes the most on their property and then compare it a further month down the road when Mr Fix pays all the fees again and off you go again. Now calculate it 2 or 3 times assuming they have both moved and tell me where you are.
I am not disagreeing that a fixed rate is not cheaper for MONTHLY PAYMENTS but if you want to move house early, repay more, or anything else the fees are ridiculous. If you have an £800 a month payment on a variable rate over 25 years and you can manage an additional £100 a month you reduce your term by nearly 20% that's nearly 5 years quicker your mortgage is paid off. Banks and Building Society's don't lose money with Fixed Rate Mortgages they make more money that's why they do it. Try to get a genuine Variable Rate Mortgage linked to BOE Base Rates with a daily rate of interest if you don't believe me.
You can overpay on a fixed deal, usually by upto 10% of the total amount per annum. The lower the interest rate, the more capital you pay off via any overpayment. My 5 year deal, fixed at 1.89% had ZERO fees. It cost me nothing, zilch. Ok, you do have to pay a penalty, which decreases year on year, if you wish to move your mortgage. However, the whole point of fixing at such historically low interest rates is to leave it there!
Your argument is completely flawed Kev in all but the most isolated of cases, i.e someone who is constantly moving or paying off a mortgage early or overpay by more than 10% per annum. I can assure you that, unless you fit the above in all cases, you have been paying more interest than you needed to. It has cost you more and the bank has profited more from your borrowing.
There are plenty of online mortgage/interest calculators if you wish to prove me wrong.
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im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!
You'd just rather spend dead money each month then Daz?😁
rent vs ownership.
One is a lifetime payment with no assets at end.
The other is 25 years of payments, then none and ownership of a huge asset.
It's not rocket science, although timing is important.
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Very interesting thread although big banks especially the Nat West basically do what they want. What I have never understood is why people just don’t borrow at the standard Variable rate. Surely the banks get it back with interest on these special fixed terms.? I think I have had about 5 or 6 mortgages. I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.
Because Kev , not everybody is in such a fortunate position as you to facilitate that.
What a ridiculous statement, I struggled the same as the next man! I have also been through very high interest rates up to 15% in some cases. I was taught to only buy what you could afford to pay for in the bad times, the good times were a bonus.
You're taking my statement too personally. Nothing ridiculous has been said. You can't understand why people ever take a low fixed term rate over a variable and then go on to say you over pay monthly on the shortest repayment terms you can. Many, many people are already mortgaged to the max on those fixed terms and possibly one payslip away from being on the breadline or losing their home. Your post sounded like you could not understand that, that was all.
Sure, I understand the mindset of only borrowing what you can afford but these days the reality is wages do not meet the cost of living for all. Especially in some parts of the country where young families can only dream of being in the position of paying their mortgage off early if in fact they ever get a foot on the ladder at all.
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im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!
You'd just rather spend dead money each month then Daz?😁
rent vs ownership.
One is a lifetime payment with no assets at end.
The other is 25 years of payments, then none and ownership of a huge asset.
It's not rocket science, although timing is important.
And it would mess up the housing benefits 😁
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Person A
Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.
Person B
Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.
It can’t be any more simple than that 😂
Now try calculating it in reality
Do a real example for both a fixed rate and a variable rate and include all the set up fees, early exit fees and all the other hidden crap for the fixed rate. Then when you have finished do another comparison at the end of the fixed period and see who owes the most on their property and then compare it a further month down the road when Mr Fix pays all the fees again and off you go again. Now calculate it 2 or 3 times assuming they have both moved and tell me where you are.
I am not disagreeing that a fixed rate is not cheaper for MONTHLY PAYMENTS but if you want to move house early, repay more, or anything else the fees are ridiculous. If you have an £800 a month payment on a variable rate over 25 years and you can manage an additional £100 a month you reduce your term by nearly 20% that's nearly 5 years quicker your mortgage is paid off. Banks and Building Society's don't lose money with Fixed Rate Mortgages they make more money that's why they do it. Try to get a genuine Variable Rate Mortgage linked to BOE Base Rates with a daily rate of interest if you don't believe me.
You can overpay on a fixed deal, usually by upto 10% of the total amount per annum. The lower the interest rate, the more capital you pay off via any overpayment. My 5 year deal, fixed at 1.89% had ZERO fees. It cost me nothing, zilch. Ok, you do have to pay a penalty, which decreases year on year, if you wish to move your mortgage. However, the whole point of fixing at such historically low interest rates is to leave it there!
Your argument is completely flawed Kev in all but the most isolated of cases, i.e someone who is constantly moving or paying off a mortgage early or overpay by more than 10% per annum. I can assure you that, unless you fit the above in all cases, you have been paying more interest than you needed to. It has cost you more and the bank has profited more from your borrowing.
There are plenty of online mortgage/interest calculators if you wish to prove me wrong.
Absolutely spot on Winpro.
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Spot on yeah that’s the basic principles of getting a mortgage if you don’t understand that I doubt you should be getting one lol,you could have said do you realise why people switch.
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Person A
Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.
Person B
Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.
It can’t be any more simple than that 😂
Now try calculating it in reality
Do a real example for both a fixed rate and a variable rate and include all the set up fees, early exit fees and all the other hidden crap for the fixed rate. Then when you have finished do another comparison at the end of the fixed period and see who owes the most on their property and then compare it a further month down the road when Mr Fix pays all the fees again and off you go again. Now calculate it 2 or 3 times assuming they have both moved and tell me where you are.
I am not disagreeing that a fixed rate is not cheaper for MONTHLY PAYMENTS but if you want to move house early, repay more, or anything else the fees are ridiculous. If you have an £800 a month payment on a variable rate over 25 years and you can manage an additional £100 a month you reduce your term by nearly 20% that's nearly 5 years quicker your mortgage is paid off. Banks and Building Society's don't lose money with Fixed Rate Mortgages they make more money that's why they do it. Try to get a genuine Variable Rate Mortgage linked to BOE Base Rates with a daily rate of interest if you don't believe me.
You don’t have to pay set up fees for a fixed rate mortgage, the interest rate will be around 0.25% higher if you want to avoid a product fee. The rule of thumb is anything from £175 000 upwards on a 5 year term will probably work out cheaper in the long run taking the lower interest rate along with a product fee of £1000, there is also the possibility of a cashback incentive of up to £500. Under this amount and you are probably better not paying a product fee and taking the slightly higher interest rate.
There are no penalty charges if your fixed term is finished.
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im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!
You'd just rather spend dead money each month then Daz?😁
rent vs ownership.
One is a lifetime payment with no assets at end.
The other is 25 years of payments, then none and ownership of a huge asset.
It's not rocket science, although timing is important.
I'll be moving in with my missus when we get married....shes got a 4 bed house and earns more money than me.....shes not got many years left on her mortgage now.....🙂👍
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im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!
You'd just rather spend dead money each month then Daz?😁
rent vs ownership.
One is a lifetime payment with no assets at end.
The other is 25 years of payments, then none and ownership of a huge asset.
It's not rocket science, although timing is important.
I'll be moving in with my missus when we get married....shes got a 4 bed house and earns more money than me.....shes not got many years left on her mortgage now.....🙂👍
You've got it made Daz!!😁
(just pray she never turfs you out!😲😬)
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We’ve just recently moved and needed a bigger mortgage for this house, so we borrowed more.
I had to declare the grants, and also write a small explanation on how the pandemic had effected my business.
We also had to send bank statements off and all the usual sa302’s and tax summary’s.
All came back with the A ok when underwritten. Though was a nervous wait!
We are with nationwide and were porting our current mortgage, plus borrowing more.
Sounds like Halifax are very fussy. Nationwide were pretty good.
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It’s great that there are people like Kev that would rather pay thousands extra in interest per year to the banks. It enables the banks to then offer far reduced rates to the more shrewd lenders like myself. Keep up the good work Kev.
Oh and btw, i overpay on my fixed term, fee free mortgage too, it makes the long term cost of borrowing EVEN cheaper.
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I cant even get a mortgage, still renting. Hopefully in the next couple of years i will be able to get one. Ive just paid all my personal debts off so now just the wait for 2 to 3 years good accounts.
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I used the bounce back loan to set up a sideline as a money lender. There are a lot of skint people because of the pandemic, as you all know.
I'm off out in a bit to do some collections. It's not the best time admittedly. I shouldn't have to go out threatening OAP's and single mums with violence on a Christmas Eve. If they don't cough up I might even have to go out again tomorrow and procure some kids' presents, TV's and widowers' wedding rings as down payments ::)roll.
I even bumped into a client coming out of a foodbank yesterday humming 'A Spaceman Came Travelling' by Chris de Burgh, looking well pleased with herself, her belly like a beanbag. I snatched the bags out of her hands, told her she didn't need them and called her a "fat cow". She was hysterically screaming that she was pregnant, due any day soon and that it was mine!
I told her that she should have used protection and she can afford it because I haven't had a payment off her for nine months.
Thanks to people like me people don't have to go to banks and declare their income and grants.
Wish me luck and I just hope I'm back in time to watch the first part of Scrooge and Dirty Den give Angie the divorce papers in EastEnders on UK Gold.
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I agree with NWH.
I’m not sure I can understand most of his posts but I definitely agree with them!
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I reckon he’s got the Virus 🦠 🤣🤣 or he’s had to many Christmas nuts 🥜 lol.