Random Mortgage Question

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  • The_Aardvark 15 May 2006 16:14:32 3,063 posts
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    Just a random question for those of you already burdened with mortgages (mortgage is French for death-grip, fact fans). About what proportion of your mortgage do you pay back every month?

    Ta!
  • ssuellid 15 May 2006 16:16:45 19,141 posts
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    i.e. What proportion of your mortgage is the capital repayment part?

    If so about 70% interest 30% capital - very loose figure.
  • smoothpete 15 May 2006 16:19:27 36,799 posts
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    Think of the mortgage over its life, ie mortgage of xxxK paid over 30 years. It will also depend what kind of mortgage it is of course

    Edited by smoothpete at 16:20:15 15-05-2006
  • Lutz 15 May 2006 16:20:10 48,870 posts
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    Or: If you have a 25 year mortage than every month you pay back one three-hundredth of the total amount payable.
  • ssuellid 15 May 2006 16:20:40 19,141 posts
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    Mortgage Calculator

    Current offered rate is around 5.2%
  • smoothpete 15 May 2006 16:23:01 36,799 posts
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    We had an offer on our place (well, her place) today! Woo! So I will soon be burdened with a mortgage of my own. Can't wait to be honest! Our house is going to be pukka :D
  • Necropolis 15 May 2006 16:23:15 896 posts
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    Ah mortgages, something I have to start looking at (the missus insists).

    Does anyone know, off the top of their head, how someone would work out how much they could get as a mortgage.

    I really need to start looking at the housing market and have no idea how much I could really afford.

    Any help on this would be great.

    *tries not to hijack the thead any further*
  • Lutz 15 May 2006 16:24:34 48,870 posts
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    Necro: If you're getting amortgage on your own then it will vary from lender to lender. A *rough* guide is 3.5 times your gross salary, but someplaces will lend much more, sometimes as high as 5 times.

    Edit: As you mention your missus I assume you're getting a combined one. Although they don't work it out this way, it's roughly 3 times your combined gross salary.

    IIRC.

    Edited by Lutz at 16:25:17 15-05-2006
  • smoothpete 15 May 2006 16:24:44 36,799 posts
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    Some companies do it on 3.5 times your income (or 2.5 for couples I think), others will do it on affordability (ie look at you monthly outgoings and see what you could afford to pay per month)
  • smoothpete 15 May 2006 16:25:15 36,799 posts
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    Don't fuck yourself over and borrow too much though
  • Dougs 15 May 2006 16:25:59 93,664 posts
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    Don't. This depresses me too much. Despite not being on a bad salary, it looks as though I'm fuxxored for the foreseeable future. No way I can afford the mortgage I need for a decent property.
  • Lutz 15 May 2006 16:27:19 48,870 posts
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    Same here Dougs. A bog standard house where I live, that WILL need work doing to it, goes for roughly 5.5 times my wage.

    Ouch.
  • ssuellid 15 May 2006 16:28:17 19,141 posts
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    Something worth considering are interest only mortgages with an over pay option. For example a 1100 a month mortgage is split into 800 interest part and 300 capital part. So all you would have to pay if things suddenly got tight was the 800 a month part.
  • Dougs 15 May 2006 16:29:39 93,664 posts
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    Even when you look out of town into the sticks its daft. Long gone are the days of being able to get on the ladder and pay less than rent.

    And of course, I have to assume that at some point me and the missus will have to live on one wage, for a time at least, and that's the most limiting factor.
  • THFourteen 15 May 2006 16:31:47 53,527 posts
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    If my parents weren't able to help me out theres no way I could think about buying. Luckily we bought a 2 bedroom place together, and my flatmate pays my parents rent each month.

    I'm on a 5 year fixed rate of 5% and its over 25 years, can't work it out in my head, too slow and too thinky about ronaldinho and julie :)
  • The_Aardvark 15 May 2006 16:41:42 3,063 posts
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    Living at home is the only way we can afford to buy any time soon. It's still going to take about 3 years of putting away the money we're saving on rent before we can get together the deposit for a place.

    It's so depressing. I made my monthly savings deposit today and I've saved what for me is a shocking amount of money (almost edging five figures) but it's still so fricking far from where I need to be.
  • The_Aardvark 15 May 2006 16:46:51 3,063 posts
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    Oh and, Ssue, thanks for that mortgage calculator, that was exactly what I was looking for.
  • silentbob 15 May 2006 16:52:52 29,527 posts
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    Aardvark, get yourself an independant mortgage broker / advisor. Ours was utterly invaluable whilst attempting to navigate through the minefield of jargon and numbers. Ask your friends / family etc to see if they can recommend someone.
  • ssuellid 15 May 2006 16:57:41 19,141 posts
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    silentbob wrote:
    Aardvark, get yourself an independant mortgage broker / advisor. Ours was utterly invaluable whilst attempting to navigate through the minefield of jargon and numbers. Ask your friends / family etc to see if they can recommend someone.

    Agreed, plus they have exclusive mortgages as well as the high street ones. And they fill in the forms for you or at least with you. Then, if they are any good, will chase the mortgage company for you.

    A recommendation is the only was to find one tho - make sure its a proper IFA.
  • ssuellid 15 May 2006 16:58:39 19,141 posts
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    CrispyXUK wrote:
    What rates have you lot got? I managed to get 4.55%

    When tho?- they have been slowly creeping up for a few weeks.

    Fixed or variable?
  • ssuellid 15 May 2006 17:07:07 19,141 posts
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    5.2 fixed was the best we could get the other week.
    4.9 fixed mid last month.
  • ssuellid 15 May 2006 17:19:43 19,141 posts
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    That was a bit of a lull in the market so the rates went down - now creeping up. Plus the financial indicators are supposedly looking like interest rates will have to rise - unemployment, deficit, etc.
  • Dougs 15 May 2006 17:39:09 93,664 posts
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    Appreciate your candidness (or is it candidity?) Bill. Those figures frighten me though, I have to say! My rent at the moment is 725 for a 2 bed flat in south London, so my limit is probably about 800 tops. And I can't see that happening...

    Saving is a bastard too -it'll take us years to get a reasonable amount together. Oh well, poverty ftl.
  • ssuellid 17 May 2006 14:34:35 19,141 posts
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    Got offered 4.9% fixed again yesterday so interest rates seem to be flickering like crazy.

    Friend of the wife went for a nasty 110% mortgage tied in for 2 years. Meant that she did not need a deposit, could pay off her debts etc. But it got her a house quickly and she switched to a far better cost mortage 2 years on. Saved her pissing the rent away whilst trying to save for a mortgage.
  • timmyc 17 May 2006 14:45:00 382 posts
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    CrispyXUK wrote:
    What rates have you lot got? I managed to get 4.55%
    I got 4.39 fixed for 2 years which was nice.
  • Fat-Boy 17 May 2006 14:48:27 4,300 posts
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    Nice. I got "You live in Surrey and earn less than 60,000? No mummy and daddy to help you out? Why don't you go fuck yourself then? We'll offer you less than the price of a fucking garage. Go on, whinge all you like, we don't care. And no, you can't have a credit card, you don't have enough credit history. I don't give a fuck how you get a credit history when nowhere will give you credit, go on fuck off."

    /Is very bitter about this country's financial institutions.
  • Fat-Boy 17 May 2006 15:08:15 4,300 posts
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    the sprout wrote:


    they won't give you a credit card? do you not receive an offer through the post like every day?

    Yes, which is one of my main gripes with them. The particular firm in question is the one I bank with, plus they also send me junk mail offering me 10,000 loans every other week, but they won't give me a card with a limit of (plucking a figure out of the air) 250.

    "It's a different department sir etc. etc." Oh just fuck off!
  • Fat-Boy 17 May 2006 15:13:48 4,300 posts
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    Bill Door wrote:
    I've just moved from an ex-council house in a (for the area) deprived location. The wonders of postcode targetted marketing meant that I used to get Barclaycard junk mail offering me the chance to build a credit history at a mere 29% APR. In my new gaffe, I'm offered a generous 12 month interest free period. That is a disgrace IMHO.

    Well, the banks would say it's based on the risk of people living in that area defaulting on their repayments.

    Rational, right thinking people would call it making bundles of cash off the back of the ignorant and/or desperate. Banks, I bloody hate the basts!
  • reality_cheque 17 May 2006 15:38:22 7,486 posts
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    Bill Door wrote:
    Radio 5 was talking about the frightening survey that was conducted recently, showing that a lot of people think the higher the APR is, the better the deal O_o

    I'm lost for words. I'm hoping it's just because high interest rates is good for savings accounts, and not just people thinking higher numbers are automatically better.
  • Fat-Boy 17 May 2006 15:40:31 4,300 posts
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    reality_cheque wrote:

    I'm lost for words. I'm hoping it's just because high interest rates is good for savings accounts, and not just people thinking higher numbers are automatically better.

    I fear it's the latter. And I can't even blame the banks on this one (which really upsets me!). If you're stupid enough not to properly research something to do with finance before you accept it you really do deserve everything you get!
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