[dd]

NWH please, just stop posting.  At this point you are just typing utter rubbish, please just stop.

Have you only just noticed?

[Kev Martin]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

[Don Kee]

Keep posting NWH, I for one find your posts very informative!!

[Richard Groves]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

Because Kev , not everybody is in such a fortunate position as you to facilitate that.

[G Griffin]

Spoke to a customer he has 2 sons that are pilots he was one himself 1 is a captain and has been kept on by  his airline on furlough,the other 1 was due to take his captains exam in May he will probably never work as a commercial pilot again his Dad told me,he’s gone from a potential 90k a year to 21k delivering for Ocado and no chance of a Mortgage they will have to eventually lend money or they will run out of customers.
People remortgaging at the moment are a better bet than any first time buyers.

That's nearly always been the case  .
And that sounded like a nightmare job; with three planes on the drive.

[deeege]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? 

[Kev Martin]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

Because Kev , not everybody is in such a fortunate position as you to facilitate that.

What a ridiculous statement, I struggled the same as the next man!  I have also been through very high interest rates up to 15% in some cases.  I was taught to only buy what you could afford to pay for in the bad times, the good times were a bonus.

[Kev Martin]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? 

[/b]

What!  So who do you think is paying the other 3%?  The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.

Its exactly the same as when you take out a Bank Loan and they say  "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you?

[֍Winp®oClean֍]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? 

[/b]

What!  So who do you think is paying the other 3%?  The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.

Its exactly the same as when you take out a Bank Loan and they say  "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you?

Lower interest means you pay less, both monthly and in total. The interest is not 'deferred' at all, it's set, that's the 'deal'.
Who do you think pays it Kev?

[KS Cleaning]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? 

[/b]

What!  So who do you think is paying the other 3%?  The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.

Its exactly the same as when you take out a Bank Loan and they say  "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you?

When you go on a fixed term of say 5 years the interest rate can be around 1.5%, after the 5 year term if you don’t remortgage you would then go on to their variable rate which will be around 4%. So by remortgaging you are constantly on the lower fixed rate. The Bank of England base rate is 0.1% at the moment and has been under 1.0% for many years now, so no one should be paying a mortgage at 5%.

[deeege]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

You don’t understand why people would rather pay less than 2% interest rather than 5%? Really? 

[/b]

What!  So who do you think is paying the other 3%?  The fairies? Low interest rates for fixed periods are only deferred interest payments which you ultimately pay more for in the end because you are paying interest on the deferred interest as well.

Its exactly the same as when you take out a Bank Loan and they say  "Oh and by the way your first repayment isn't for 3 months". Do you think they are being nice to you?

Are you actually being serious? I don’t even know where to start with that.

[֍Winp®oClean֍]

I reckon Kev must a serious hangover. I can only think he's replying to the wrong thread!🤔😆

[deeege]

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 😂

[Kev Martin]

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.

[dazmond]

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

[dd]

The way lenders are able to provide fixed rate deals is by securing money from the market based on long term projections for interest rates, so their cost in providing the mortgage is already fixed.

I have never had a fixed rate mortgage (now mortgage free) but for many it comes down to whether you prefer the security of fixed monthly payments. my last mortgage was a tracker.

[֍Winp®oClean֍]

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.

[֍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.

[Richard Groves]

Very interesting thread although big banks especially the Nat West basically do what they want.  What I have never understood is why people just don’t borrow at the standard Variable rate.  Surely the banks get it back with interest on these special fixed terms.?  I think I have had about 5 or 6 mortgages.  I have just taken them out at the variable rate over the shortest term possible that I can comfortably afford and then paid them off as quickly as possible by overpaying when I could.

Because Kev , not everybody is in such a fortunate position as you to facilitate that.

What a ridiculous statement, I struggled the same as the next man!  I have also been through very high interest rates up to 15% in some cases.  I was taught to only buy what you could afford to pay for in the bad times, the good times were a bonus.

You're taking my statement too personally.  Nothing ridiculous has been said. You can't understand why people ever take a low fixed term rate over a variable and then go on to say you over pay monthly on the shortest repayment terms you can. Many, many people are already mortgaged to the max on those fixed terms and possibly one payslip away from being on the breadline or losing their home. Your post sounded like you could not understand that, that was all.

Sure, I understand the mindset of only borrowing what you can afford but these days the reality is wages do not meet the cost of living for all. Especially in some parts of the country where young families can only dream of being in the position of paying their mortgage off early if in fact they ever get a foot on the ladder at all.

[tlwcs]

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.

And it would mess up the housing benefits 😁