Northern Rock

Post by **Mike** » Sat Apr 25, 2009 8:42 am

Retro Sweets makes a redundant man's life pretty sweet as he considers opening his first shop!

mr_e · Post by **mr_e** » Sat Apr 25, 2009 1:01 pm

That link's making me hungry!

As an extra bonus: the post-1998 student loan interest is down to 1.5% this year. Apparently it's the higher of base-rate plus 1% or the RPI and as the RPI's negative...

Post by **Mike** » Sat Apr 25, 2009 5:20 pm

mr_e wrote:That link's making me hungry!

Must be breakfast time then!

I might even be able to start paying off some of my loan then with the interest going down! At the moment it is about 50-50 interest vs capital.

BarcelonAl · Post by **BarcelonAl** » Sun Apr 26, 2009 6:56 pm

Ace! I calculated that I've been paying a little bit of the capital off over the last two years, but this really should bite into it...now if only they'd send me a fecking statement!

mr_e · Post by **mr_e** » Sun Apr 26, 2009 10:45 pm

They've been sending out two letters with your logon details so you can check it all online, got mine last month. To summarise: we owe them a shitload of money.

Post by **Mike** » Mon Apr 27, 2009 8:10 am

Don't worry. After the bail out you probably owe about 2 years worth of full pay in tax rises to pay for the banks. . . . .

BarcelonAl · Post by **BarcelonAl** » Mon Apr 27, 2009 9:53 am

mr_e wrote:They've been sending out two letters with your logon details so you can check it all online, got mine last month. To summarise: we owe them a shitload of money.

Hmm...I vaguely recall something about that, wonder where I put it!

Post by **Mike** » Mon Apr 27, 2009 1:48 pm

I don't recall getting mine. I wonder if it has become misplaced somewhere!

Good Article on the recession and its causes. We are in a global 'correction' apparently. That sounds like mumbo jumbo management speak to me.

Post by **Mike** » Fri Jul 03, 2009 1:05 pm

Since I am on a fixed rate of about 6% I have come up with a plan to reduce my interest payments.

1) Get a new mortgage at a fixed low interest rate to pay off all but £500 of my existing mortgage.
2) Wait for the existing deal to run out (effectively having two mortgages for a few years) and then pay off the remainder.

What do you think, would it work?

Post by **johnriley1uk** » Fri Jul 03, 2009 1:15 pm

Things to think about:

Can you get a better rate than 6% that is fixed?
What are the set up charges?
If you pay off your existing mortgage what are the early repayment charges?
Why are you leaving £500 in the first mortgage?
Will a second lender be happy that another company with first call on the value of the property is involved?
What will a re-valuation cost and will lower house values affect how much you can borrow?
Will Lizzie not currently at full time work affect the total amount you can borrow significantly?
What affect will the new reluctance to lend more than 80% or less of the house value have?

Phew! Anyone else any more to add?

stimpsonslostson · Post by **stimpsonslostson** » Fri Jul 03, 2009 1:18 pm

Don't forget to check whether venus is in the ascendency or whether mars is occluding uranus!

(I know NOTHING about mortgages!

)

Post by **Mike** » Fri Jul 03, 2009 1:43 pm

johnriley1uk wrote:Can you get a better rate than 6% that is fixed?

As it happens, No. I looked at a couple of deals and they were 7 year deals at 6.5% which is higher than my current deal.

johnriley1uk wrote:What are the set up charges?

Very high - £1800 was the biggest I saw. To fix at 4.24%.

johnriley1uk wrote:If you pay off your existing mortgage what are the early repayment charges?
Why are you leaving £500 in the first mortgage?

If I pay off the full amount then I will have to pay over £4k in early repayment charges. This is why I am leaving a balence of £500, the terms and conditions allow me to pay any amount I like off the loan!

johnriley1uk wrote:Will a second lender be happy that another company with first call on the value of the property is involved?

Who knows!

johnriley1uk wrote:What will a re-valuation cost and will lower house values affect how much you can borrow?

Probably, we think our house potential value has shrunk by about 10K based on house adverts in estate agents. The reduced value is what I based my quick checks on.

johnriley1uk wrote:Will Lizzie not currently at full time work affect the total amount you can borrow significantly?

Significantly but we are under borrowed at the moment based on both of us working (in terms of the 3.5 times calc) so it can be afforded on my wage (famous last words, I can hear them penning the redundancy already).

From my brief check, it looks like the whole thing is rather pointless, the cost of borrowing has not reduced much as the banks are profiteering to pay for all their previous excesses.

New plan, win the Jackpot or find someone to borrow an obsene amount of money off and pay them back very slowly. I worked out that at the current rate of payback it would take about 10.5 years to pay off the full amount if the interest rates were 0%!

stimpsonslostson wrote:I know NOTHING about mortgages!

Neither do I, I think that is the problem.

liz.brownlloyd · Post by **liz.brownlloyd** » Fri Jul 03, 2009 2:45 pm

I did the same calculations 2 months ago and it was cheaper to stick. Mine's a three year deal with two years to run and argh 6.5%. But then if I hadn't fixed it, liz's law (similar to murphys) the interest rates would have gone up and I'd currently be eating beans on toast and not seeing anyone.

rileyuk.co.uk

Northern Rock

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