Soldato
You on SVR/tracker then, not a fixed or similar?
Mortgage Interest Rates
- Thread starter Psycho Sonny
- Start date
You on SVR/tracker then, not a fixed or similar?
Yes, Lifetime Tracker - Variable interest rate
Soldato
Probably just not updated the system yet in that case. Probably dealing with mortgage holiday requests etc as a priority.
- Joined
- 21 Jun 2006
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8 years is a 5 year fix had they already bought and some over payments on top
so not an issue for most sensible people.
Soldato
A lot of people that I know seem to value more free money a month, so they pay the minimum amount possible back. Over paying is only sensible to people like you (and me) but to others, more money to go out and have fun or treat their kids is more sensible. I don't know many people that over pay their mortgage, or chose not to opt for the longest term possible.
hope that's the case - i'll keep an eye on it for a few days!
You mentioned a 0.50% drop but it should be 0.65% (0.75>0.25>0.10) from today. I received a letter stating my new rate from Santander this week and can see it reflected on my account today.
Soldato
Its nothing to do with sensible, your defining sensible, and against what most of the population seem to believe.
Most people do not overpay. Many people take out a mortgage and just let it run, they don't see a need to get a high equity percentage and value other things higher than clearing the mortgage.
Plenty of people also don't have the ability to pay a significant extra payment, and as I already pointed out to you buying is actually usually cheaper than renting.
Just because people choose a different balance in life doesn't make them wrong or you wrong, everyone is different.
I dont see the point in 4k TVs as an example, sure they look a bit better, but to me they offer no increased value over a normal high def, if I am watching something worth watching i become engrossed in the thing I am watching and then start paying pretty much zero attention the blades of grass blowing in the wind. BUT i understand why some people may think its worth it, they value that and consider it worth paying extra for.
Me I would say anyone who has a mortgage and is wasting money on super high def TVs and stuff like that should pay the money off the mortgage, but thats just me.
Soldato
Everyone makes irrational decisions about money all the time, it is part of human nature. We very rarely are capable of finding the right balance between living a frugal life of austerity and paying down all debts and then saving, and living beyond our means. There's no automatic correct balance in-between those two positions, as people are driven by emotions more than numbers.
Interesting, I'll give them a call tomorrow.
Soldato
Nationwide sent me a letter confirming the new rate after the initial 0.5% drop, they didn't send me one after the extra 0.15% drop.
From what I can see they have taken payment yesterday at the 0.5% drop figure, but not the further drop of 0.65% yet. Saved me a whopping £50 this month so far!
My KFI document states this (originally applicable when the base rate was 0.75%):
This technically means they should charge the lower rate by the 20th of this month, so my next payment should be about £15-£20 cheaper again.
It seems to be rare that people opt for short (<25yr) terms but I don't think it is a huge majority that go for the longest term possible (e.g. 40yrs).
In terms of overpayments it depends on mortgage conditions whether it is worthwhile; when I had a mortgage I deliberately didn't overpay because the rate of interest was lower than the net return you could get from cash savings.
Soldato
I think overpaying is largely going to beat savings at the moment, even if just reducing the term (don't forget you need about 2% interest just to keep pace with inflation).
Overpaying with Nationwide does allow you a buffer for mortgage payments if you lose your job or can't pay the mortgage for any reason.
I like going for a longer term with lower mandatory payments, but I am usually pretty disciplined on throwing extra cash beyond emergency buffer savings at the mortgage.
With the corona thing though, I am trying to keep back more cash than normal.
Took mine out in May 2017. Went for a 5-year fix, 2.89%, 90% LTV.
Can't do anything for 2 years, but will likely stick with the same provider and remortgage at 1.74% (no fees), for 2/3 years (assuming the same deal are around then). My mortgage isn't expensive anyway, but that will still net a nice saving.
Can't do anything for 2 years, but will likely stick with the same provider and remortgage at 1.74% (no fees), for 2/3 years (assuming the same deal are around then). My mortgage isn't expensive anyway, but that will still net a nice saving.
Spent 40mins on hold and gave up trying to get through so sent an email via their site.
Haven't had a reply yet, but logged onto internet banking this morning and the rate has been adjusted from 1.5% to .85% - so just had to be a bit more patient apparently
I've remortgaged with Santander in just the last few weeks at a variable rate of BOEBR + 0.84%. All the paperwork was delivered with a quoted rate of 1.59%. So it was a little frustrating as I obviously wanted the lower rate. Anyway, I've just checked on line and it does now reflect the lower BR, so it's 0.94%.
So, I dipped in on this and am on a tracker mortgage with Nationwide with 15 months left. Interestingly, they didn't do the second drop on the 1st April, anyone know why? However, it is certainly tempting to fix for 5 years with 1.69%, same rate as the 2 year, but the reason I went on the tracker was because I was at a crossroad with a few financial decisions in life.
I also decided to double check my rates as the renewal was coming up at the end of July and I remembered this thread. I was previously on 2 year fixed at a rate of 1.75% and had I just left it the variable rate with the halifax would have taken over and jumped it up to 3.5 ish percent which I thought was a bit silly. Enquired over the phone with Halifax on Wednesday and went through the houror so of questioning and they offered me 2 years at 1.45% or 5 years at 1.46%. Took the 5 year deal and its all done and dusted with the paperwork turning up today, just two days after I asked them the question on the phone. Pretty good going really and I guess the rate is fairly decent.
Man of Honour
Did ours today online, the process takes about 10 minutes and then it's just a matter of accepting documents online too, which is another 5.