Ally
Member
Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
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Im on interest only too Dave, switching to repayment when me and Richie move to a bigger place in the next fre years and have the mortgage in joint names
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--Dave--
Banned
Registered: 17th Feb 04
Location: Essssseeeeex Drives: Black Supra TT
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Ally 
just wanted to get on the ladder for now. Then when I earn more I can start to pay it off properly 
Not a nice feeling though when I've been living there 8 months and you get your statements through and the sum hasn't even decreased that much 
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Ally
Member
Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
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Greg, heres a very rough idea
If you borrow 175k over 25 years at in interest rate of approx 5% you will be looking at paying back -
Repayment - £1034
Interest only - £730
Repayment is the better if you can afford it, as interest only means you are only paying off the interest and at the end of the term of the mortgage you will still have the 175k remaining
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Bart
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Registered: 19th Aug 02
Location: Midsomer Norton, Bristol Avon
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Greg, ive not read what everyone else has written, but ive just taken out my own mortgage, so i will tell you what i know.
Me and the misses have just moved in together, we're on very similar salaries, £22k.
Our house is mortgages for £150k and we pay £770 a month.
The term is for over 30 years.. although we can remortgage at any point for 25 years.
You should do what we did, which was find a local mortgage advisor (not a free one) and let him do everything for you.
We hired a chap, and we gave him all our details, he done the research and told us the best deals.
At the end, we have the option to pay him, or let him take the commission from the mortgage company.
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Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
User status: Offline
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quote:
Originally posted by --Dave--
Not a nice feeling though when I've been living there 8 months and you get your statements through and the sum hasn't even decreased that much
Interest only is the way forward. Just sell after a few years and make a few thousand, then put it down on next house and repeat steps every few years.
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--Dave--
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Registered: 17th Feb 04
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Loaf
I was thinkin of eventually moving to a repayment plan. I guess we'll see what's available at the end of the 5 years. A lot could change between now and then
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GREG 1
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Registered: 28th Jul 00
Location: Essex
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Thanks guys (and Ally)
Appreciate that!
Once you have finished paying the interest only do you then jump straight into paying back the larger monthly fee? (for example the £1000+ per month on the £175k)
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GREG 1
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Registered: 28th Jul 00
Location: Essex
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Dave- Are you paying the interest off for 5 years then mate? then moving onto paying the rest back?
How much a month is that ?
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--Dave--
Banned
Registered: 17th Feb 04
Location: Essssseeeeex Drives: Black Supra TT
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Greg - as Ally said, if you continue with the interest only option for the length of your term after the 35 years you will still owe 175k.
As what Loaf said, what with the ever rising house prices, you should be able strategically buy and sell to cover yourself.
I will still be looking at repayment deals at the end of the 5 year fixed term though.
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--Dave--
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Registered: 17th Feb 04
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no mate, that's just how long the interest rate is fixed for 4.89% or thereabouts. After this the interest rate will vary as it does normally.
I will be looking at changing then perhaps.
I pay £880 a month.
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GREG 1
Member
Registered: 28th Jul 00
Location: Essex
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Cheers Dave!
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JadeM
Premium Member
Registered: 9th Feb 06
User status: Offline
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Typically you should look to change mortgage every 3-5 yrs!!! If you stick to an interest only mortgage at the end of the mortgage term, assuming you have made all the interest payments, you will owe the same amount that you borrowed at the beginning. So you need to have a lump sum available to pay the mortgage back in one go at this time.
[Edited on 17-08-2006 by JadeM]
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JadeM
Premium Member
Registered: 9th Feb 06
User status: Offline
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My mortgage is £220 a month....Repayment 25yrs!!! 
[Edited on 17-08-2006 by JadeM]
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--Dave--
Banned
Registered: 17th Feb 04
Location: Essssseeeeex Drives: Black Supra TT
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£220! that takes the piss
I may move to Scotland 
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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I like Scotland, shame its full of Scottish people
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Brett
Premium Member
Registered: 16th Dec 02
Location: Manchester
User status: Offline
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quote:
Originally posted by JadeM
Typically you should look to change mortgage every 3-5 yrs!!! If you stick to an interest only mortgage at the end of the mortgage term, assuming you have made all the interest payments, you will owe the same amount that you borrowed at the beginning. So you need to have a lump sum available to pay the mortgage back in one go at this time.
[Edited on 17-08-2006 by JadeM]
That would be if you stuck in the same house with the same mortgage for the full term.
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Surely interest only mortgages are just the same as renting?
Or am i being stupid?
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Ally
Member
Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
User status: Offline
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Col my mortgage is £300 a month 
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--Dave--
Banned
Registered: 17th Feb 04
Location: Essssseeeeex Drives: Black Supra TT
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quote:
Originally posted by James
Surely interest only mortgages are just the same as renting?
Or am i being stupid?
depends how you look at it really. In terms of paying money and it not going anywhere then I guess you're right. Many people (myself included) have taken out an interest free mortgage in order to just get on the property ladder with a view to switching after a few years
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JadeM
Premium Member
Registered: 9th Feb 06
User status: Offline
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quote:
Originally posted by James
Surely interest only mortgages are just the same as renting?
Or am i being stupid?
Clever person would move up every couple years to the biggest house they can afford on interest only, hang on 5 years or so until its doubled in value then downsize to a comfortable sized house & go repayment. The profit from downsizing will pay most of your new mortgage!!! Thats my 10yr plan to be mortgage free anyway!!! Might work might not
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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I see, I may have to see a mortgage advisor.
When I graduate ill be on 30k-35k and I want to get a mortgage on my own but living in the most expensive county in the country (Surrey), I dont think it will happen
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JadeM
Premium Member
Registered: 9th Feb 06
User status: Offline
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quote:
Originally posted by Ally
Col my mortgage is £300 a month
Repayment though??
I bought mine for £36k 18months ago...I could now sell it all day long for £60k
Not huge amounts like darrn sarrrff but still not bad at all
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--Dave--
Banned
Registered: 17th Feb 04
Location: Essssseeeeex Drives: Black Supra TT
User status: Offline
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quote:
Originally posted by JadeM
quote:
Originally posted by James
Surely interest only mortgages are just the same as renting?
Or am i being stupid?
Clever person would move up every couple years to the biggest house they can afford on interest only, hang on 5 years or so until its doubled in value then downsize to a comfortable sized house & go repayment. The profit from downsizing will pay most of your new mortgage!!! Thats my 10yr plan to be mortgage free anyway!!! Might work might not
This is the way to go We're doing the same.
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Dione J
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Registered: 22nd Sep 04
Location: West Midlands Drives: Leon Cupra Turbo
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quote:
Originally posted by JadeM
My mortgage is £220 a month....Repayment 25yrs!!!
[Edited on 17-08-2006 by JadeM]
I pay double that living at home
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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quote:
Originally posted by d_jay50
quote:
Originally posted by JadeM
My mortgage is £220 a month....Repayment 25yrs!!!
[Edited on 17-08-2006 by JadeM]
I pay double that living at home
You pay £110 a week living at home? 
Id move out mate
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