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Soldato
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Out of interest, does anyone here go with an Interest Only mortgage rather than a repayment one and then put the balance into their investment pot?

I know there's obviously a risk and that shouldn't be underestimated and you'd have to be very strict and have a plan in place and not just dip into the pot for general spend. But realistically, putting money away for >20yrs into a range of low risk funds should be profitable and insulate from short term market drops. My mortgage is split into 3 parts due to annoying timings when we bought our current house and we're locked for a few years yet so would incur some hefty fees to change now, but was just wondering if other people had any thoughts. Especially with how low rates are at the moment.
 

FMF

FMF

Associate
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8 Jul 2008
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Out of interest, does anyone here go with an Interest Only mortgage rather than a repayment one and then put the balance into their investment pot?

I know there's obviously a risk and that shouldn't be underestimated and you'd have to be very strict and have a plan in place and not just dip into the pot for general spend. But realistically, putting money away for >20yrs into a range of low risk funds should be profitable and insulate from short term market drops. My mortgage is split into 3 parts due to annoying timings when we bought our current house and we're locked for a few years yet so would incur some hefty fees to change now, but was just wondering if other people had any thoughts. Especially with how low rates are at the moment.

When I've looked a lot of providers require a low LTV (less than 70%) and a high salary for IO mortgages.
 
Soldato
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East of England
I'm currently having an issue with T212. Their customer services are hilariously **** and just give generic replies to everything and never come close to answering the question.

I've got shares in Entain (LSE: ENT)and since 1400 on Wednesday 13 January the price has stopped tracking on T212. It's just stayed as a complete flatline since then. I also haven't been able to buy or sell any of my ENT shares (even £1) since then and transactions have shown as pending for the last 3 working days - I kinda think this goes hand in hand with the lack of share price tracking T212. Everything else is working perfectly on the app.

ENTs share price is tracking fine the whole time on Google and LSEs own website.

Anyone ever had this problem and what is causing it?
 
Soldato
Joined
19 Jan 2006
Posts
15,940
Out of interest, does anyone here go with an Interest Only mortgage rather than a repayment one and then put the balance into their investment pot?

I know there's obviously a risk and that shouldn't be underestimated and you'd have to be very strict and have a plan in place and not just dip into the pot for general spend. But realistically, putting money away for >20yrs into a range of low risk funds should be profitable and insulate from short term market drops. My mortgage is split into 3 parts due to annoying timings when we bought our current house and we're locked for a few years yet so would incur some hefty fees to change now, but was just wondering if other people had any thoughts. Especially with how low rates are at the moment.

hard to find IO mortgages these days. Also they will look for a repayment plan of some kind, you need to evidence how you are going to repay. Simply telling them an ISA or my pension isn't good enough. You need to evidence this in reasonable detail now.

Personally, and professionally, I would never advise someone to do this. Each to their own, of course, but your playing with fire.
 
Soldato
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Hondon de las Nieves, Spain
hard to find IO mortgages these days. Also they will look for a repayment plan of some kind, you need to evidence how you are going to repay. Simply telling them an ISA or my pension isn't good enough. You need to evidence this in reasonable detail now.

Personally, and professionally, I would never advise someone to do this. Each to their own, of course, but your playing with fire.

Yeah, having spent a quick 15 minutes reading through the criteria, it's not looking like something i'd quality for, seems rules got a lot stricter a few years ago, presumably due to the rise of people being unable to repay at the end of the term. I had assumed that as long as my LTV was low enough (currently around 60%), that it'd be a viable option, but seems not unless you actually have the physical assets sat somewhere to cover you.

Seems the best option would be to transfer my ISA over to First Direct if i build it up to a point where it's worthwhile and then transfer to an Offset Mortgage, but then FD's offset interest rates are fairly comical compared to standard repayment rates.
 
Soldato
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Yeah, having spent a quick 15 minutes reading through the criteria, it's not looking like something i'd quality for, seems rules got a lot stricter a few years ago, presumably due to the rise of people being unable to repay at the end of the term. I had assumed that as long as my LTV was low enough (currently around 60%), that it'd be a viable option, but seems not unless you actually have the physical assets sat somewhere to cover you.

Seems the best option would be to transfer my ISA over to First Direct if i build it up to a point where it's worthwhile and then transfer to an Offset Mortgage, but then FD's offset interest rates are fairly comical compared to standard repayment rates.

I'm part repayment/part IO (due to various additional bits added over the years)....But mortgage rate is 0.69% over base for the lifetime of the mortgage. So dirt cheap with Coventry.

I'm currently over paying mortgage, I also have money in offset account. They asked me a few years back for proof of funds for I/O bit - if I couldn't provide it they would move it all to Repayment. I provided statement of my personal ISA etc and they were happy with this.
 
Soldato
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14,349
Out of interest, does anyone here go with an Interest Only mortgage rather than a repayment one and then put the balance into their investment pot?

Even on a capital repayment mortgage/additional borrowings you could quite easily invest your overpayments instead of paying down capital. This would essentially make it interest free and in fact allow you to profit from not increasing equity immediately.

Not without risk mind but over a longer term with a sensible risk appetite it should not be that hard to achieve.

Doing so within an ISA or regular Investing account gives you the benefit of tax free / CGT gains and also a safety net should you need access to cash in an emergency. Most lenders allow you to take a payment holiday if you've built up a buffer of overpayments rather than extracting or rescinding your overpayment(s).

Offset mortgages still exist though LTV's are lower generally and rates less attractive.
 
Associate
Joined
25 Aug 2008
Posts
947
I'm currently having an issue with T212. Their customer services are hilariously **** and just give generic replies to everything and never come close to answering the question.

I've got shares in Entain (LSE: ENT)and since 1400 on Wednesday 13 January the price has stopped tracking on T212. It's just stayed as a complete flatline since then. I also haven't been able to buy or sell any of my ENT shares (even £1) since then and transactions have shown as pending for the last 3 working days - I kinda think this goes hand in hand with the lack of share price tracking T212. Everything else is working perfectly on the app.

ENTs share price is tracking fine the whole time on Google and LSEs own website.

Anyone ever had this problem and what is causing it?


They get their feed from Interactive Broker as far as I am aware so depends on the quality of their data feed. If you placed a sale that hasn't been put through, you should be able to claim losses from the recent price drop back.
 
Soldato
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Soldato
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Leicestershire
Well I was going to sell my Senseonics yesterday, its been running at a loss for me for a while, it hit 15% but I was busy and missed my normal sell point, by the time I looked again it was 42% up, ended up 45% by the end of the day so I kept it over night, its currently 63% so happy to have been busy yesterday lol...
 
Soldato
Joined
13 Jul 2004
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20,079
Location
Stanley Hotel, Colorado
Out of interest, does anyone here go with an Interest Only mortgage rather than a repayment one and then put the balance into their investment pot?
Most straightforward answer imo is that rates being low is already a gift. I would use it to improve security with the mind it wont last forever.

I reckon people should be fixing their rates for 10 years or more because they could spike horribly and thats a scenario worth protecting against like insurance its not just straightforward which looks cheaper.
Rates are so artificially below the norm right now, but banks themselves are an unpopular sector from this question of capital risk and failed payments. If its going to last forever and these banks have healthy margins, whats the worry. If the risk is reasonable to weigh in the price then I wont ignore it personally in regular repayment

Change of admin today is a news event, I dont know if we sell the news but theres a change of stance that could mean we see a difference in markets I guess. I presume Dollar over a year or so just falls off a cliff until costs rise and people push back on overly easy monetary standards

the launch of a public offering of 7,500,000 shares of common stock to be sold by certain selling stockholders of Corsair. In addition, certain of the selling stockholders are expected to grant the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock.

The big note there would be no new shares so you can probably ignore further detail I guess. Its just the founders or similar long term holders providing big market holders entry to the company. If they flip the shares it would likely upset things but I presume it was done with various agreements to hold which is done with rights issue also sometimes. Like RR low price I thought at least some of that was excessive supply of the new shares, if there isnt enough demand for new issuance it can easily become a low but also as we've seen a bit of an opportunity to buy into weakness.
It probably wont recover as dramatically like that again I'd agree, still RR should profit from development across Asia if they are doing it right and still competitive, efficient in their development etc.
 
OcUK Staff
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17 Oct 2002
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OcUK HQ
News from Corsair last night which I know @Gibbo will be interested in: https://finance.yahoo.com/news/corsair-gaming-inc-launches-public-211900064.html

I've not heard of "The selling stockholders will receive all of the net proceeds from the offering and Corsair will not receive any proceeds." before though. Anyone care to explain?


I think a lot have mistakenly taken it for share dilution.

Waiting for earnings report for Q4/year and outlook which is due early February I think.

They do seem to have made excellent progress at reducing debt and as the entire PC, component and peripheral market is absolutely booming at moment I can see good future for them.

Logitech also passed $100 recently and judging by how crazy business still is I don’t see any sign of it slowing yet so next six months is looking good and probably rest of year considering both NVIDIA/AMD and Intel still have loads of new products to release.
 
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