corsasport.co.uk
 

Corsa Sport » Message Board » Off Day » House Day » early repayment charge » Post Reply

Post Reply
Who Can Post? All users can post new topics and all users can reply.
Icon:
Formatting Mode:
Normal
Advanced
Help

Insert Bold text Insert Italicized text Insert Underlined text Insert Centered text Insert a Hyperlink Insert Email Hyperlink Insert an Image Insert Code Formatted text Insert Quoted text
Message:
HTML is Off
Smilies are On
BB Code is On
[img] Code is On
Post Options: Disable smileys?
Turn BBCode off?
Receive email notification of new replies?

chloe16v

posted on 3rd Mar 14 at 09:28

it might take us a few months or even up to a year to up the repayments to that, it all depends on what needs doing in the house, kitchen would be livable for a few months if there were a cooker point, but rest just looks cosmetic, house on same street is up for 70k and we dont like it, would want to move the kitchen into the dining room and knock the wall down which wouldnt be worth it, but this is the original layout of all the houses round this area

http://www.rightmove.co.uk/property-for-sale/property-41659804.html


only thing is, we would need a bloody good sds drill as the walls are solid :|


John

posted on 3rd Mar 14 at 08:46

It won't if you overpay by that anyway. The main benefit of doing it that way is you aren't forced into paying the £500 a month if you are ever unable.


spencer88

posted on 3rd Mar 14 at 08:05

If you are looking at over-paying, why not just get a mortgage with higher repayment over a shorter period. Not being funny but by being able to over pay by £500 a month, you should look at getting a mortgage that increases your monthly payments by £250. Will save a shit load in interest.


chloe16v

posted on 2nd Mar 14 at 19:47

It's not a really bad area, it's only afew streets away from where we live now, I couldn't give a shite what the area is like tbh, their are a lot worse and as long as we keep our selves to ourselves like we do anyway, the outside doesn't matter to us, it's a old mining town and these are the pit houses that was built for the workers,

Kitchen needs ripping out and re jigging, the kitchen was originally in the utility room and that was just the dining room, from looking at the pics their isn't even a cooker point


Ben G

posted on 2nd Mar 14 at 17:03

quote:
Originally posted by Dave
Have you clicked the link?


Yeah, it's old and battered but Dagenham is no worse and the houses there are about 4x the price. Ia it a shithole area?


Aaron

posted on 2nd Mar 14 at 15:59

quote:
Originally posted by Rob_Corsa
quote:
Originally posted by chloe16v
iv been using this as a guide http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator


The excel based spreadsheet found below is very good;

http://www.learnmoney.co.uk/pdfs/Excel-Mortgage-Calculator.xls


Excellent :)

I've just worked a few things out the place i'm buying


Dave

posted on 2nd Mar 14 at 13:58

Have you clicked the link?


Ben G

posted on 2nd Mar 14 at 11:19

55k for a whole house? Am I missing something?


Rob_Corsa

posted on 1st Mar 14 at 21:57

quote:
Originally posted by chloe16v
iv been using this as a guide http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator


The excel based spreadsheet found below is very good;

http://www.learnmoney.co.uk/pdfs/Excel-Mortgage-Calculator.xls


Pop

posted on 1st Mar 14 at 21:57

Go for it, at the rate you will be able to overpay it will be yours outright in no time!


chloe16v

posted on 1st Mar 14 at 21:57

this is the house in question, very typical of the houses in this area, my only question, where the feck do you put the cooker? :| http://www.zoopla.co.uk/for-sale/details/30609894?search_identifier=e78d89140af4c9deeb09ab883bed2a90


chloe16v

posted on 1st Mar 14 at 21:51

iv been using this as a guide http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator


chloe16v

posted on 1st Mar 14 at 21:49

also thought about if we can get the ltv a lot lower and do decide to move in 2-3 years, changing the mortgage to a btl and taking a mortgage out on another property, its just the deposit we are short of now to be able to buy something more expensive , but for personal reasons we need to move soon and this house is livable, we cant private rent because of the dogs


Rob_Corsa

posted on 1st Mar 14 at 21:47

quote:
Originally posted by Cole
3% of the whole mortgage


Incorrect, its 3% of the overpayment amount. You'd only pay £1650 if you decided to pay the whole mortgage off in one go!!!

In reality the fee is 3% of the amount you overpay(above the allowed overpayment amount), ie if you paid an extra grand off on top of the allowed 10% overpayment, they would charge you £30.

I did it a couple of times when I had a nationwide mortgage because if your interest rate is say 3%, after a year you will break even in terms of what you got charged as a fee and how much you will save in interest by having paid the figure off early. At a higher interest rate you will break even sooner.

[Edited on 01-03-2014 by Rob_Corsa]


chloe16v

posted on 1st Mar 14 at 21:45

i just used that as an example in the first post, we will be looking at a 95% mortgage as we have just used all our saving to clear all our debts, i have a litter of pups to sell that will be ready in 2 weeks so im hoping to put that and anything we can save in the mean time towards a deposit


Pop

posted on 1st Mar 14 at 21:38

I'm now confused. In your first post you're talking about getting a £55K mortgage then you follow it up by saying the house is only £55K! Do they do 100% mortgages any more?

If you are in a position to overpay by £5,500 in year 1 plus an extra £3,000, do you not have a deposit to put in?

With the house value being low, you could reach a good LTV level easily and benefit from a more preferential rate.

[Edited on 01-03-2014 by Pop]


chloe16v

posted on 1st Mar 14 at 21:30

the house we have seen is on the market for £55k and has been on for 4 months, was thinking just to get on the ladder buy this, do it up, over pay so their is enough equity in the property to move up the ladder in 2-3 years time


chloe16v

posted on 1st Mar 14 at 21:27

will see what the broker comes back with and maybe lower the term of the mortgage so we'll be paying more each month anyway and then over pay on top of that, something to think about


chloe16v

posted on 1st Mar 14 at 21:26

was thinking of overpaying by around £500 each month, so the mortgage would essentially be paid off in around 6 years, but if its going to cost 1650, feck that lol


Pop

posted on 1st Mar 14 at 21:05

If you are looking at overpaying more than the allowed 10% you could consider a tracker that has no overpayment limit.

If rates start to rise you could then fix it if you like.


Cole

posted on 1st Mar 14 at 21:04

3% of the whole mortgage


chloe16v

posted on 1st Mar 14 at 20:59

ok im just thinking ahead here, if we got a mortgage for £55k with monthly payments of around £322 and mortgage allowed 10% over payment anything above would incur an erc of 3%, would that be 3% of the whole mortgage? ie £1650 or 3% of the over payment, say £100 a month would be £3 :boggle: havent got a clue when it comes to mortgages :lol: