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Pilsbury

morgage repayments, can you still afford them if.....

The intrest rate rises?
I have just been reading an artical suggesting people start to look at what happens when the intrest rates start to rise.
People it seems have become a bit complacent in the last 5 years withhistoric low interest so i decidec to use this morgage patment calculator to see what my payments would be at different interest rates.
http://www.moneysavingexpert.com/...aign=mortgages&utm_content=62
just fill iin your amount and time remaining and play with tue interest figure and hit calculate.
I overpay already and am pating tye equivelent of an 8% morgage already but plan next month to increase payments to the equivilent of an 11% morgage so for now im not to worried but have you checked yours?
debbie

happy to say no mortgage and shortly to have no rent either however, I do remember when I lived in London and had my flat with a mortgage of 50,000 - a 95% mortgage which nearly crippled me when interest rates went up to 15%  Mortgage company did let me make 3/4 payments for 4 months but at the end of the day that still had to be paid back.
sod

No morgage but at our age we would have great trouble paying anythink.
Digindeep

Yes Debbie, I too remember 15% mortgages , Jean and I were working 27 hours a day, yet somehow we survived and are now free of a mortgage....
WendyBendy

wow I hate paying my mortgage, I can't wait until I finish paying in about 20 years lol
WendyBendy

wow I hate paying my mortgage, I can't wait until I finish paying in about 20 years lol
sod

Remember the feeling well 'one day when..............' But now it is just the bills and Rates (council tax) which is bad enough   But we are retired
dtalbot

About 7 years ago I took out a 25 year fixed deal, sure it has been more expensive than it could have been for the last few years but I've horrible feeling (for everyone else) it is going to come good in the next few.
dtalbot

Oh and yep my first mortgage interest rate was well into the teens, why I grabbed the long term fixed when I did!
Digindeep

It's a long and winding road...(song).yet somehow we all get through ......

How I will never know......yet some 30 plus years later here I am, retired and mortgage free,.....
how ?  why?  you tell me!

Perhaps were all just survivours........................................
brummie nick

We took our mortgage out in 1963 over twenty years, so we have been mortgage free for just over 30 years.  
Border

Took out our mortgage in "94" fixed interest rate, remortgaged in "07" and are mortgage free in 2016.
12Bore

14 payments to go...

Not that I'm counting
Border

12Bore wrote:
14 payments to go...

Not that I'm counting


You can bet your last payment I am.    
12Bore

Border wrote:
12Bore wrote:
14 payments to go...

Not that I'm counting


You can bet your last payment I am.

 
Lorrainelovesplants

I took my first mortgage out at 18, and was paying loads for years, but I managed it.  Sometimes it was weeks on beans on toast, but I think it was a good training.  been mortgage free for 2 years now.  My biggest drain is my kids.
magnet

morgage free

I'm 45 and have paid my mortgage off, not with the help of the bank of mam and dad but by bl...y hard work and doing without .....Its been a journey
Rena

Re: morgage free

magnet wrote:
I'm 45 and have paid my mortgage off, not with the help of the bank of mam and dad but by bl...y hard work and doing without .....Its been a journey


Way to go!!!
sod

We stared at age me 23 Jean 21 and bought cheapest house we could find and let it as I had house on farm I worked on in 1972 both worked and put all money into house paid off in 3years then moved on and paid this place off at about 20years later would have been a lot quicker but we have 3 now grown up children    
Captain_Dingbat

Ours will be paid when I'm 55 which is a good job! I'd like to think I can consider part time teaching then. The pace I'm going at the moment, I'll not reach 67 which is my retirement age, I'll be dead long before that.

I have about 5 hours marking ahead of me tomorrow. The herd of horses is going next year, I can't continue like this for another winter so we have decided to cut down to just two, and even then, we might just sell up completely if the right people come along.

I've still a pile of exam marking to do next week and then ANOTHER pile when they finish their mocks this next week....ARGH!

Not rejoining the riding club, at the moment, my leisure time consists of going dancing on a Tuesday, and I feel guilty for that.
12Bore

12Bore wrote:
14 payments to go...

Not that I'm counting

11...
Fowgill Farm

We got one of the very last 1/2% above base rate trackers no questions asked other than can you pay?    before they shut the doors and started to ask more questions.
We've been overpaying for ages and its nearly done but with such a good deal we're loathe to let it run out and we have an option to take a fair few thousands more at the same rate. We can't decide if being mortgage free is better than having 'cheap' borrowing which we could use to renovate the rest of the farm buildings. I also have my eye on a new pig trailer
Methinks we need to have a sit down with pen and paper and work out pros and cons.  
Mortgage free sounds wonderful wish could do the same with the exorbitant council tax!
Mandy
Pilsbury

In your position i would stop the over payments complestly snd pilecthe extra into accoubts like tsb plus,  lloyds club,  santandar 123 and tesco savings,  they all pay between 3% and 5% interest so you csn actuall make more money on your xash thsn you save so long as you havevthd money available to pay off lump sums oncecthe interest rste rises.
Usng your cash isa is a good plan as well but you need to shop around a lot to find one that will pay more than your morgsge rate.
Basically in your position i would be tempted to reduce my payments as far as possable and stash the cash in different high interest currentvaccounts and isa
Pilsbury

And if you can get more at the same rate you could borrow up to 60k so long as you can get the money before the end of the isa year and get 15k each in this year and then 15k each for next years allowance.
I must say i have no expertise in this field and itvall has risks so check everything out carefully first lol.
Im not close enough to being morgsge free to reduce my overpayments and my morgsge rate is still  1. 99% so i wouldnt benifit as much
12Bore

12Bore wrote:
12Bore wrote:
14 payments to go...

Not that I'm counting

11...

10...
Pilsbury

Show off.
Im currently investigating if i can borrow enough on 0% credit cards to stash in 5% current and 8% savings accounts to earn enough interest to get more in than my morgsge interwst.
If i can then it makes more sense to cut my overpayments right off and use it to repay minimum payments on the cc borrowing.
It will be especially useful if the tax releife on savings interest kicks in next year.
Pilsbury

Show off.
Im currently investigating if i can borrow enough on 0% credit cards to stash in 5% current and 8% savings accounts to earn enough interest to get more in than my morgsge interwst.
If i can then it makes more sense to cut my overpayments right off and use it to repay minimum payments on the cc borrowing.
It will be especially useful if the tax releife on savings interest kicks in next year.
Pilsbury

12Bore wrote:
12Bore wrote:
12Bore wrote:
14 payments to go...

Not that I'm counting

11...

10...


4 lol.
Looks like the interest rate is going to be stsying low a bit longer thank goodness, still on track to pay it off in 3 years....
12Bore

3

Mind you, it's been twitchy a couple of time in the last few months...
Pilsbury

So is January due to be your last payment?
What a fantastic new years thst will be.
sod

12 bore. Funny here that interest rates are so low
12Bore

Pilsbury wrote:
So is January due to be your last payment?
What a fantastic new years thst will be.


Yup (fingers crossed) and Feb and March are No Council Tax months can't wait!!
Pilsbury

Oh I bet...
I keep wondering if i should do sometjing else with my overpayments but the draw of being mortgage free by 44 is to much so in it goes month after month...
12Bore

I just want to be shot of it, more than I would have believed possible!
12Bore

2
kaz

Getting there  
sod

12Bore wrote:
2


Your so happy happy happy
12Bore

kaz

   
Time seems to be flying by.  

Have you got any plans for your 1st mortgage-free month?
sod

 
Christine

kaz wrote:

Have you got any plans for your 1st mortgage-free month?

Yeah probably pay a lot of other bills most likely.  
Pilsbury

So what date is your last payment Joe?  
Lucky git!!!
12Bore

It's getting closer...
sod

Better than waiting for Christmas as you will save money not spend it    
12Bore

Counting the hours...  
Border

We have 3 payments left....then the small holding will be ours........ALL OURS.
12Bore

If my calculations are correct, today's the day!
Captain_Dingbat

   
kaz

12Bore wrote:
If my calculations are correct, today's the day!


 
Congratulations..........
sod

    one now for 12 Bore another soon for Border
12Bore

It's official!!
Just spken with the Building Society, final payment was made and account is now closed!      
Border

It's great day, fantastic feeling.

I was there for 3 years ago on my other property.    

     

Then I brought another property  
sod

Now about the spare money you will have    

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