RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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no; all my insurance is seperate
borrowing 144k on 6.64APR would be £796.80 per month so makes more sense but when does the repayment kick in
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James
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Registered: 1st Jun 02
Location: Surrey
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It doesn't as far as I'm aware, she just basically said are you aware that the capital will still need to paid at the end of the mortgage.
I guess I can change it to repayments as and when I can afford it though?
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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normally though Interest only mortgages are only for 3 years then the repayments kick in but instead of being over 25 years they are over 22, so obviously you have to pay off more per year (average of £6545.45 per year instead of £5760). Also, you will still be paying a huge chunk of interest after the initial interest only term.
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James
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Registered: 1st Jun 02
Location: Surrey
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Ok well she never mentioned that.
I would imagine it would be something they would mention would it not?
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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just checked, some are over the full term and are paid alongside an ISA or Endowment type policy which should pay off the balance at the end. However for a lot of first time buyers there is a set period interest only mortgage which happens for a period of 1-3years before the repayment plan kicks in
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James
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Registered: 1st Jun 02
Location: Surrey
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I see.
It seems the Post Office will do it for around £700 a month anyway.
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Colin
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Registered: 4th Apr 02
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Me & Jade can borrow around 150k-ish between us.
Ive been looking at a shared equity deal where you take out a 85% mortgage. This takes us to something like £127500 for the 150k house weve seen. Id put down the 27500 as a deposit leaving a mortgage of 100k. With large deposit I can get a 2yr fixed rate repayment at iirc 4.02%. Its about £530 a month.
Thats what im looking to do in the next few months.
That was with Lloyds tsb. Halifax were expensive in comparison & had £1k product fee!!
[Edited on 09-02-2009 by Colin]
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Kano
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Registered: 29th Aug 04
Location: Fife
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quote:
Originally posted by Colin
Me & Jade can borrow around 150k-ish between us.
Ive been looking at a shared equity deal where you take out a 85% mortgage. This takes us to something like £127500 for the 150k house weve seen. Id put down the 27500 as a deposit leaving a mortgage of 100k. With large deposit I can get a 2yr fixed rate repayment at iirc 4.02%. Its about £530 a month.
Thats what im looking to do in the next few months.
That was with Lloyds tsb. Halifax were expensive in comparison & had £1k product fee!!
[Edited on 09-02-2009 by Colin]
RBS will give you closer to 3% with that sort of deposit colin. i did lots of loking around and they managed to beat everyone hands down.. I've fixed mine for 5 years in the hope that everything is heading back up in the next few years.
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Half Pint
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Registered: 25th Mar 02
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i've just got a £171,000 mortgage approved including our deposit of £19k gives us £190k to play with. The bank did a check and we have been approved upto £277,000 and like fuck am i going to borrow that...
any how the repayments on that looks to be:
£692.06
Tracker mortgage....
162,000 @ 1.5%
and
9,000 @ 3.5%
now need to look over my finances so that i can get the whole anount at the 1.5%
However as the rate has now changed to 1% the first payment amount will be lower 
[Edited on 10-02-2009 by Half Pint]
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Where did you get a tracker from? 
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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I don't understand:
Say I want to borrow £150,000 over 25 years.
Lets pretend the rate of borrowing over the 25 years is 6% (that right?).
So thats 150,000 * 1.06 = 160,500.
25 years / 12 months in a year = 300
160,500 / 300 = 535 a month?
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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quote:
Originally posted by LiVe LeE
no; all my insurance is seperate
borrowing 144k on 6.64APR would be £796.80 per month so makes more sense but when does the repayment kick in
That over 25 years is £511.87 a month?!?
Wheres the extra £275 a month coming from?
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Colin
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Registered: 4th Apr 02
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Your all wrong K-pow, it works in some weird way where you end up paying loads.
If you borrow 150k over 150k you'll pay well over £200k back.
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Kano
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Registered: 29th Aug 04
Location: Fife
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Why would you ever want to pay interest only? Surely its ust setting you up for a load of hassle, and your technically buying something you cant afford..
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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So how do you end up paying 200k back?
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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How? well because you've no other way to get the 150k other than from a bank so the banks charge loads!!
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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Colin i'm sooo lost!
How can they advertise it with 6% rate if its really nearer 30?
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Thats just a rate for comparison, not APR%.
Your charged interest monthly & its top loaded I think, so every month you pay a stack of interest & pay off a wee bit of your mortgage.
Giving somone 150k for 25yrs, there going to want more than 16k back!! 
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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God damn it 
So I'd need to be on double what I'm on now to even THINK about moving out. I bring home 1k a month clear of tax.
[Edited on 10-02-2009 by pow]
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
Originally posted by pow
God damn it
So I'd need to be on double what I'm on now to even THINK about moving out. I bring home 1k a month clear of tax.
[Edited on 10-02-2009 by pow]
Or be living with someone who also brings home £1k and then you can just about get by. But forget holidays etc.
I've looked into it also pow. I wouldn't say double, you just need to bring home enough to have £1k left after paying the mortgage.
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Exactly Deano, get the burd paying half!!
I dont bring in much just now & I manage ok. Better things will come in time 
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Half Pint
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Registered: 25th Mar 02
User status: Offline
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quote:
Originally posted by James
Where did you get a tracker from?
work, staff mortgage.... 
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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quote:
Originally posted by Colin
Exactly Deano, get the burd paying half!!
I dont bring in much just now & I manage ok. Better things will come in time
When I move out though, if the burd left, I'd still want to be able to afford everything with ease I want it to be MY house, not OURS.
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dannymccann
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Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Me and the missus went to see IFA about mortgages.
£100000 house
£10000 deposit
£90000 mortgage
so 90% LTV
Shite rates of 6.2 - 6.6% came to about £560 cap + int
The higher the deposit and the monthly repayments dropped like a lead balloon 
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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I'm wth Deano.
I'd have "her" DD'ing for the bills and i'd be paying the mortgage,
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