Mortgages

My rent is £13,200 per year, eight years of renting and that is over one hundred thousand pounds that I would have given to a landlord.

Ouch. Mines not even half of that.

When I was in Oz, I was in the same position. I decided I didn't like my job enough to be locked into it to pay a 25 year mortgage. I moved here and spent my deposit on booze. FTW :)

ha ha repped!

If I'm renewing my mortgage or remortgaging or whatever the hell it's called when they say "minimum deposit of 35% is required". What is this calculated from? The total value of the property or the amount I want to borrow given that I've paid some of the principle off or what?

Value of the house, less the value that the bank paid, is your deposit.

Less the amount you've paid off as well I would think.

Or so I understand it.

We need to agree a new deal in August/September, so that's when I need the work to be finished.

Having paid 190, I am hoping to get it revalued at ~230, thus increasing the deposit side by 40K.

This should push us over the threshold, and get us a better rate when as the loan to value ratio will have changed in our favour.

Loan to value.

edit. what Neil said.

Dredge. What with London property being so reasonably priced at the moment I thought now can only be a good time to buy, anyone else doing the same? Looking for a mortgage is fun isn’t it?

'Owning your own home' thread is probably more useful for you. It's more active with mortgage chatter.

You reckon? All those smug cunts chat about is new flooring and boiler replacements

There's 2,104 mentions of 'mortgage' in that thread compared to 27 here so, yeah.

Smug cunts = people with 30 years of debt? Maybe. Depends how you view things.

Fair point

5 year 2.77% or 2 year 2.43%?

Best possible 2yr fixed deal is around 1.75% currently (+1% on base).

Base interest rates are expected to rise to 2%, although some analysts are forecasting 3% as 'the new normal'.

So you're looking at between 3 and 4% fixed sometime in the future, I'd go with the 5 year option.

Thanks. I shat my credit rating a couple of months ago juggling a kitchen so am doubtful I'll get a better offer than renewing through current lender. 5 year is an extra £75 a month than we're paying at the moment but seems better than likely having to stomach much more than that in a couple of years.

So I'm best going for a 2 year fixed I guess?! Over £600 extra pcm. WTF!

Haha, I’m so very, very fucked.

So we are about to renew, to me 2 years seems too short but 5 too long?
Given increases likely to continue in to next year and then will be slower if they go down.
Obviously hugely depends on situation too. Possibly worth considering getting revalued to help too?

we renewed couple of months ago for 2 years and if you ask me now I wish I had gone for 5

ours jumped by £1000 some of it is because we got our term reduced

Thought about revaluing, we've put about 90k into the house in the last 2 years. The work won't be finished for a few months though (I'm having to plasterboard and 2nd fix) so could possibly go onto a tracker for a bit. It's just hard to know if rates will rise significantly between now and then.

Can't help but feel our broker may have pushed it to get it over the line for her commission but I'm probably just being paranoid.

We’ve been overpaying but it’ll pretty much wipe the overpayments out.
Our value went up significantly so that helped. We are looking at 5.19 for 5 year.
I’m reluctant as if it goes down in say 3 that’s a significant chunk!

lol - have just seen my post here last year. How I wish I'd taken the 5 year at 2.7 and not shit advice from FiL

No one can predict the future. I'd always go shorter for flexibility. Depends how close you're running to your financial limits though. I'm always super conservative with my mortgage size though, to avoid the stress when rates rise (which was annoying the last ten years but, see first sentence)

I'd always go shorter for flexibility.

This constant renewing doesn't make any sense if you are not a bank.
Like you say the last ten years show how pointless it is, people taking
short term fixes when the base rate is close to 0%, hoping for what?
Negative interest?

For me, it was more that I was restricted in overpayments when "in" the mortgage. Because I had such a small mortgage (see risk averse/conservative buying approach mentioned) I had more money that could be overpaid than I was allowed.

It's much more varied now, so you run the risk of being stuck at a higher rate, no?

Herein lies the problem with financial advice. No one gets all the variables of an individual...