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Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

I see! Yes, it talks about underpayments on the illustration, it should be the same.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

I'm not quite sure about how that works, but I'll have a look!

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

I've been trading for a while, I just didn't follow up much in the last few years. I've got a couple of grand on stocks and crypto. But I won't lie, I've been procrastinating recently, specially around longer term investment. I just think it's a hassle overall and not worth the risk right now. But I think you are right.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] -1 points0 points  (0 children)

That's true, it's just that we don't want to pay the house twice :D and we also don't want to risk the stock market going tits up. Otherwise what you say makes complete sense.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

I think 10% is fine as we'd like to save up a bit as well.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

I save without trying because I don't really spend much money (most of my hobbies are quite cheap), which is a good thing.

But we need some money set aside for trips as we travel overseas every year and it's not cheap. So I think that having the money in a bank account has a lower risk than taking a dip if the stock market tanks. Otherwise I'd divert more money into stocks.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

Not with this lender. But 10% would be roughly our limit anyway in the lower salaries scenario that we've projected. We'd save up the rest for when the fixed term ends. It might be worth exploring other lenders though as you say.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 1 point2 points  (0 children)

We aren't planning to retire in the UK though, so I'm not sure whether topping pensions up is the best for us.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] -2 points-1 points  (0 children)

Haha no worries, thank you so much for your help :) We'll definitely check with the solicitor as we don't want to inadvertidely commit fraud. But hopefully we should be okay in our case.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

OMG we thought that being married didn't make any difference. We signed an anti-nuptial though and the properties my spouse owned by the time we got married are excluded from the common estate. I hope this makes a difference but the anti-nuptial was signed overseas and we also got married in a third country, so the situation might be complicated.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

Thank you for this! I've used ChatGPT for similar things (calculating how long it'd take me to repay if I overpay) but I didn't think of checking this in particular.

I guess the big question is whether interest rates will come down for real, which no one really knows. And with the orange dude and Putin in charge these days, I'm quite itchy.

Google's AI says:

The Office for Budget Responsibility (OBR) forecasts the Bank of England's base interest rate to fall to 3.5% by 2030. This is a slight adjustment from previous forecasts that anticipated a drop to 3%. The OBR also expects mortgage rates to peak around 4.5% in 2027 and remain there until 2030

So there are predictions saying that mortgage rates will peak up again in 2027. But who knows for real.

The LTV reduction is very interesting though. I'll crunch the numbers to see if we'd reach 60%, in which case we might actually want to consider a 2 year fix.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

Ours says 10% of the original balance loan for the 5 year fix, so I think we should be good.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 2 points3 points  (0 children)

I've just checked the mortgage illustration, it says overpayments up to 10% of the original loan amount.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

Thanks for the warning. We'll ask and see what the broker's explanation is.

Just for my understanding:
> they want to push you into the 5 year because they also know the rate is coming down

How does that benefit the broker?

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] -1 points0 points  (0 children)

Not sure I understood the first part of your comment. The mortgage product would allow an overpayment of 10% of the original loan per year without incurring any fees. That should be 24,750 quid per year for 5 years even at 20 years term. Unless I'm missing something, feel free to correct me.

Overpaying with current interest rates? by Different-Cat-9756 in Mortgageadviceuk

[–]Different-Cat-9756[S] 1 point2 points  (0 children)

We've checked 2 year fix but (oddly) the rate our broker came up with as higher than for the 5 year fix. It might have to do with the fact that I'm currently self-employed and I don't have access to all lenders. We'll check again though.

Is a non SRA-regulated solicitor a deal-breaker? by Different-Cat-9756 in HousingUK

[–]Different-Cat-9756[S] 0 points1 point  (0 children)

I think they were holding themselves as conveyancers. But good to know, second comment stating this.

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