[KS Cleaning]

Person A

Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.

Person B

Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.

It can’t be any more simple than that 😂

Now try calculating it in reality

Do a real example for both a fixed rate and a variable rate and include all the set up fees, early exit fees and all the other hidden crap for the fixed rate.  Then when you have finished do another comparison at the end of the fixed period and see who owes the most on their property and then compare it a further month down the road when Mr Fix pays all the fees again and off you go again.  Now calculate it 2 or 3 times assuming they have both moved and tell me where you are.

I am not disagreeing that a fixed rate is not cheaper for MONTHLY PAYMENTS but if you want to move house early, repay more, or anything else the fees are ridiculous.  If you have an £800 a month payment on a variable rate over 25 years and you can manage an additional £100 a month you reduce your term by nearly 20% that's nearly 5 years quicker your mortgage is paid off.  Banks and Building Society's don't lose money with Fixed Rate Mortgages they make more money that's why they do it.  Try to get a genuine Variable Rate Mortgage linked to BOE Base Rates with a daily rate of interest if you don't believe me.

You can overpay on a fixed deal, usually by upto 10% of the total amount per annum. The lower the interest rate, the more capital you pay off via any overpayment. My 5 year deal, fixed at 1.89% had ZERO fees. It cost me nothing, zilch. Ok, you do have to pay a penalty, which decreases year on year, if you wish to move your mortgage. However, the whole point of fixing at such historically low interest rates is to leave it there!
Your argument is completely flawed Kev in all but the most isolated of cases, i.e someone who is constantly moving or paying off a mortgage early or overpay by more than 10% per annum. I can assure you that, unless you fit the above in all cases, you have been paying more interest than you needed to. It has cost you more and the bank has profited more from your borrowing.
There are plenty of online mortgage/interest calculators if you wish to prove me wrong.

Absolutely spot on Winpro.

[NWH]

Spot on yeah that’s the basic principles of getting a mortgage if you don’t understand that I doubt you should be getting one lol,you could have said do you realise why people switch.

[KS Cleaning]

Person A

Has £100k mortgage at variable rate of 5%. Pays £5k in interest each year.

Person B

Has £100k mortgage at fixed rate 1%
Pays £1k interest each year.

It can’t be any more simple than that 😂

Now try calculating it in reality

Do a real example for both a fixed rate and a variable rate and include all the set up fees, early exit fees and all the other hidden crap for the fixed rate.  Then when you have finished do another comparison at the end of the fixed period and see who owes the most on their property and then compare it a further month down the road when Mr Fix pays all the fees again and off you go again.  Now calculate it 2 or 3 times assuming they have both moved and tell me where you are.

I am not disagreeing that a fixed rate is not cheaper for MONTHLY PAYMENTS but if you want to move house early, repay more, or anything else the fees are ridiculous.  If you have an £800 a month payment on a variable rate over 25 years and you can manage an additional £100 a month you reduce your term by nearly 20% that's nearly 5 years quicker your mortgage is paid off.  Banks and Building Society's don't lose money with Fixed Rate Mortgages they make more money that's why they do it.  Try to get a genuine Variable Rate Mortgage linked to BOE Base Rates with a daily rate of interest if you don't believe me.

You don’t have to pay set up fees for a fixed rate mortgage, the interest rate will be around 0.25% higher if you want to avoid a product fee. The rule of thumb is anything from £175 000 upwards on a 5 year term will probably work out cheaper in the long run taking the lower interest rate along with a product fee of £1000, there is also the possibility  of a cashback incentive of up to £500. Under this amount and you are probably better not paying a product fee and taking the slightly higher interest rate.
There are no penalty charges if your fixed term is finished.

[dazmond]

im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!

You'd just rather spend dead money each month then Daz?😁
 rent vs ownership.
One is a lifetime payment with no assets at end.
The other is 25 years of payments, then none and ownership of a huge asset.
It's not rocket science, although timing is important.

I'll be moving in with my missus when we get married....shes got a 4 bed house and earns more money than me.....shes not got many years left on her mortgage now.....🙂👍

[֍Winp®oClean֍]

im glad i dont have a mortgage......and never will!they sound like a bunch of rip off merchants!

You'd just rather spend dead money each month then Daz?😁
 rent vs ownership.
One is a lifetime payment with no assets at end.
The other is 25 years of payments, then none and ownership of a huge asset.
It's not rocket science, although timing is important.

I'll be moving in with my missus when we get married....shes got a 4 bed house and earns more money than me.....shes not got many years left on her mortgage now.....🙂👍

You've got it made Daz!!😁

(just pray she never turfs you out!😲😬)

[zesty]

We’ve just recently moved and needed a bigger mortgage for this house, so we borrowed more.

I had to declare the grants, and also write a small explanation on how the pandemic had effected my business.

We also had to send bank statements off and all the usual sa302’s and tax summary’s.

All came back with the A ok when underwritten. Though was a nervous wait!

We are with nationwide and were porting our current mortgage, plus borrowing more.

Sounds like Halifax are very fussy. Nationwide were pretty good.

[deeege]

It’s great that there are people like Kev that would rather pay thousands extra in interest per year to the banks. It enables the banks to then offer far reduced rates to the more shrewd lenders like myself. Keep up the good work Kev.

Oh and btw, i overpay on my fixed term, fee free mortgage too, it makes the long term cost of borrowing EVEN cheaper.

[Stoots]

I cant even get a mortgage, still renting. Hopefully in the next couple of years i will be able to get one. Ive just paid all my personal debts off so now just the wait for 2 to 3 years good accounts.

[G Griffin]

I used the bounce back loan to set up a sideline as a money lender. There are a lot of skint people because of the pandemic, as you all know.
I'm off out in a bit to do some collections. It's not the best time admittedly. I shouldn't have to go out threatening OAP's and single mums with violence on a Christmas Eve. If they don't cough up I might even have to go out again tomorrow and procure some kids' presents, TV's and widowers' wedding rings as down payments  .
I even bumped into a client coming out of a foodbank yesterday humming 'A Spaceman Came Travelling' by Chris de Burgh,  looking well pleased with herself, her belly like a beanbag. I snatched the bags out of her hands, told her she didn't need them and called her a "fat cow". She was hysterically screaming that she was pregnant, due any day soon and that it was mine!
I told her that she should have used protection and she can afford it because I haven't had a payment off her for nine months.

Thanks to people like me people don't have to go to banks and declare their income and grants.

Wish me luck and I just hope I'm back in time to watch the first part of Scrooge and Dirty Den give Angie the divorce papers in EastEnders on UK Gold.

[Don Kee]

I agree with NWH.

I’m not sure I can understand most of his posts but I definitely agree with them!

[NWH]

I reckon he’s got the Virus 🦠 🤣🤣 or he’s had to many Christmas nuts 🥜 lol.