thetrees Posted July 10, 2013 Share Posted July 10, 2013 How the feck did you get 1.49% ender? I am also on 1.49% for part of my mortgage, a remnant of being on an initial fixed rate years ago. Slightly off topic but I was reviewing insurance last week and logged into my bank to check the remaining term of each of my mortgages. This led me to checking the options to change the larger mortgage which, after a few clicks, was reduced by 0.3% saving £150 per month. Something worth checking if you are unencumbered by fixed agreements. Link to comment Share on other sites More sharing options...
leviramsey Posted July 11, 2013 VT Supporter Share Posted July 11, 2013 Quick question - finally had my formal mortgage offer today. Took 3 weeks but got there in the end. One of the conditions attached to the mortgage is that the loan has been granted on the understanding my credit card debt is cleared before, or on completion. Now, I have a reasonably large share portfolio, in which a small amount could be sold to clear the aforementioned debt. My preference would be not to do that as I think the share price still has another 15%-20% to rise in the next 2-3 years. The question is; do they require evidence it has been cleared or will they be happy that I have the means to pay it off at anytime?So 15-20% appreciation over the next 2-3 years... that's at most 9.5% per annum of return (before dividends, but figure that'll be a 3%-ish yield, tops). Your credit cards are almost surely on a higher interest rate, meaning that selling the shares to pay off the debt will earn you a better return than the shares. Once you've paid them off, then allocate what would have been the credit card payments to "pound cost averaging" your way in.Disclaimer: I don't know what HMRC's attitude towards "wash sales" may be. This post is not a substitute for the advice of a financial or tax professional.If your return on investment is less than the interest rate you're paying, that's as sure a sign as any to deleverage. Link to comment Share on other sites More sharing options...
Stevo985 Posted July 11, 2013 VT Supporter Share Posted July 11, 2013 My mortgage goes down by over £100 a month from August, apparently. CASHBACK! Link to comment Share on other sites More sharing options...
TrentVilla Posted July 11, 2013 Moderator Share Posted July 11, 2013 I'd just keep paying the £100 extra as over payments every month, it's amazing the difference it makes to the length of your mortgage. Link to comment Share on other sites More sharing options...
Stevo985 Posted July 11, 2013 VT Supporter Share Posted July 11, 2013 I'd just keep paying the £100 extra as over payments every month, it's amazing the difference it makes to the length of your mortgage. I've considered that. And I probably will in the near future. But I'll probably pocket the cash for the first couple of months. The loan on my car runs out in a couple of months as well so I'll have that to compensate me too. Link to comment Share on other sites More sharing options...
Xela Posted July 12, 2013 Share Posted July 12, 2013 They will require proof that it has been paid in full ......I had to clear my car payments & minimal cc bill and provide receipts to my broker before I got my first stage payment Yeah solicitor needs proof its cleared. No worries will get it paid off. Link to comment Share on other sites More sharing options...
TrentVilla Posted July 12, 2013 Moderator Share Posted July 12, 2013 I'd just keep paying the £100 extra as over payments every month, it's amazing the difference it makes to the length of your mortgage. I've considered that. And I probably will in the near future. But I'll probably pocket the cash for the first couple of months. The loan on my car runs out in a couple of months as well so I'll have that to compensate me too. Do it straight away or you won't do it at all would be my advice. Honestly, sounds dull etc but do this calculator and just have a look how much you save over the course of your mortgage. http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator Link to comment Share on other sites More sharing options...
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