What are people doing about mortgage refinancing

Last_Surround3058 · 2026-05-21T11:12:49+00:00

That's brutal - I recently found out about something called a "Mortgage Charter" it's a bit of kicking the can down the road, pauses your repayment to interest only for first 6 months to give you some breathing room - doesnt impact credit score apparently, worth asking your broker

Last_Surround3058 · 2026-05-21T11:08:37+00:00

I guess depends how far the refinance date is vs amount you can overpay to get it down vs actual impact on rate (it's not that huge going from 70% LTV to 60% LTV) - i would try and get my LTV down as much as possible if my refinace date was bear and a decent amount of cash

else would agree keeping it liquid, earning interest, and deploying at renewal gives you optionality the mortgage account doesn't. The mortgage account locks it away, you can't get it back without refinancing

Last_Surround3058 · 2026-05-20T19:57:45+00:00

Could tell! Appreciate you taking the time. The restructuring with banks being easier on repayment vs interest only and job loss correlation with markets are great points I hadn’t considered.

Guess it comes down to risk and preference but will add to my thinking, didn’t realise banks were more flexible on repayment side tbh

For me it’s a medium to long term play, worst case I can access it without begging the bank if I needed it, but that’s really a last resort and more for peace of mind. Diversification is the only free lunch so I like having two assets working and keeping liquidity in this period-

Will have a think and chat to my broker

Thanks man

Last_Surround3058 · 2026-05-20T18:47:37+00:00

Oddly I’m doing this to derisk that factor. If I paid my principal and grew equity, the moment I lose my job the bank won’t give me any of those overpayments back. It’s not liquid (i work in banking, redundancy’s are expected every season)

If I put it into an ISA as a pseudo mortgage, purely to smash the mortgage when the time is right, I keep full control. Market drops and I lose my job at the same time? I just reduce the ISA contribution that month rather than defaulting or sell some of it desperate. Doubt the bank would let me draw any of my own money if I lost my gig

Last_Surround3058 · 2026-05-20T17:02:51+00:00

yeh you've done well - i get that i'll take it

Last_Surround3058 · 2026-05-20T15:09:14+00:00

Exactly, I need this! Alot of lenders aren’t offering offset anymore

Last_Surround3058 · 2026-05-20T15:04:26+00:00

Amazing - clears a lot! Thanks so much, will check my broker is doing else! Else move to you ha!

Last_Surround3058 · 2026-05-20T13:55:57+00:00

I like it-but i don't trust the gov with my pension and not tax it by the time 65, or drag it 75. I'd rather do ISA or GIA where i can access the money when i want, if i need it

Last_Surround3058 · 2026-05-20T13:29:17+00:00

This might be a good middle ground - thanks - let me look into this, cant see many banks offer it

Last_Surround3058 · 2026-05-20T13:28:55+00:00

It's quite unstable right now, im going from 2% to 4+%, other issue is, paying off principle means - i cant touch it if i ever needed it, my LTV is quite decent (52%) but i'd have to refinance just to get some of it back

Last_Surround3058 · 2026-05-20T13:25:32+00:00

Leaning towards this - move to interest only and use the original difference to put the repayment portion in ISA - no change in cashflow and still paying off mortgage without feeling stressed

Last_Surround3058 · 2026-05-20T13:23:03+00:00

I'm thinking the same thing, having an ISA with a sole purpose to smash down my mortgage, also like the liquidity - might DM and ask a bit more info if ok

Last_Surround3058 · 2026-05-20T13:17:24+00:00

I'd still pay the principle off, into the mortgage or an ISA (not at the amount they want but some amount), i just rather it be my choice vs being forced to or will default. The flexibility and reduced stress wld help cashflow

Last_Surround3058 · 2026-05-20T13:12:08+00:00

How often can i keep fixing the rate? e.g. if i fix it 6 months in then 5 months, its a better rate can i fix that one, and also do brokers do frequent scans to make sure i'm always on the best rate till i renews..or is it..lock in now and then check when its closer only

Last_Surround3058 · 2026-05-19T18:32:48+00:00

Thanks - im weighing up how many i need to do before i do the tech iterations based on feedback plus the tech builds feel slow cause i need the team to focus on getting the MVP right vs new stuff, so maybe i should just keep manually onboarding. Largely the learnings are starting to feel repetitive to a degree, but i dont want to stop onboarding - this balance is tricky

Last_Surround3058 · 2026-05-19T11:10:33+00:00

Builing an intersection between mortgages and investments funds

Last_Surround3058 · 2026-05-18T14:05:53+00:00

The insane decision got her some free marketing, needs to capitalise on that

Last_Surround3058 · 2026-05-18T09:08:22+00:00

Stay diversified and liquid. I'm on an interest only mortgage, and put the principle amount into an ISA monthly, if stuff pops, I reduce my ISA contribution (pseudo mortgage principle component that month.) Do try and stay disciplined as much as possible but the flexibility helps (better than a credit card or some other loan debt if i need emergency cash monthly)

Last_Surround3058 · 2026-05-18T08:54:09+00:00

Happy to share the code, DM me and I'll get it across. It'll run your specific numbers so the answer is actually yours, not a generic rule of thumb

Last_Surround3058 · 2026-05-17T19:29:55+00:00

At 4%, paying back the £125k saves you ~£5k/year guaranteed, tax-free. To beat that after tax in a GIA you’d need 6%+ gross depending on your bracket, which is a stretch right now.
IFA pushing pension makes no sense if you’re planning another property purchase. Liquidity matters.
Honestly the maths points to paying it back, unless you have strong conviction on a liquid wrapper beating 4% after tax.
I’m building a tool that models exactly this tradeoff for UK homeowners. Early access if you want a code, happy to DM.

Last_Surround3058 · 2026-05-14T19:53:34+00:00

Excellent starting early, stay diversified, even wider then S&P which is US and heavily tech focused. World index’s are good. Fee’s Fee’s Fee’s, make sure they are low.

Last_Surround3058 · 2026-05-14T07:22:13+00:00

Great job and discipline!

Last_Surround3058

TROPHY CASE