blonde poker forum

Hi,

is there anyone here that knows quite a bit about mortgages that i can pm for some advice? thanks

Nic

speak to a mortgage advisor. the Mortgage industry is tightly regulated for very good reason. going to your poker buddies shouldn't really be route one. one bit of advise I'd give is Independant doesn't necessarily mean good. independants' rates are often not as good and it's not unknown for them to recommend who ever is paying the best commision.

It's been a few years but I use to work as a financial consultant and specialised in mortgages. I'm also currently looking into self cert and buy to let mortgages for myself so may be able to help you. Feel free to pm me.

thanks diceman pm sent...

Adam, i know i could have gone to a mortgage advisor but i didnt want to be bogged down with all the garbage and i'm really testing the water at the minute. once i get into the nitty gritty then i'll go see the right people. at the moment though i just have this idea and want to see if it is plausible. thanks for your advice though

Charcol Online is a decent site for comparing mortgage products.  You can play around with the scenarios to your hearts content.

http://mortgages.charcolonline.co.uk/

We used them for our re-mortgage last year without any problems.

Sheriff

 rotflmfao

I love the smell of dry wit in the morning.  ;adamM;

the magazine 'what mortgage' helped me out a lot as well... be prepared to spend a bit of cash on research, because the slightest improvement in the end product will save you a lot of money over the years!!

I used to work for them, and would recommend them to anyone

Info sent.

To be honest the sum you are looking to borrow is such a nominal amount that shopping around is a case of pennies saved rather than pounds or even thousands and certainly not worth paying for specialist advise. Your best bet would be talk to your existing lender.

Your key savings will be to reduce the term of the new mortgage. As you have had your existing endowment for 10 years, and assumming it was originally set up for 25 years you should have your new mortgage for just 15 years rather than the 25 years that most people "all to" frequentantly automatically select. Alternatively you could start another savings plan (i.e. an ISA) to run for a shorter period i.e. 10 years and clear the mortgage even sooner. You then keep the existing endowment running to mature in 15 years and have a nice trip to Vegas, use it for home improvements, childrens education, treat the wife, etc, etc.

An interesting point there, when i remortgaged a few years back my lender automatically kept the term of the new mortgage to what it was i.e. the new mortgage carried on from 18 years.
I have one of these fixed rates and each time it has reached it's fixed term (usually 3 or 5 years) they contact me with a better offer, all been good so far.
When i first went for a mortgage i hadn't got a clue (as with most people) about fees/charges etc. and went to a broker who was going to charge me in the region of £950 (added to loan), i thought this was standard.
When i put an offer in on my house the estate agent told me to have a chat with their inhouse IFA and i reluctantly did this, what a shock!! He would charge me NOTHING, he got his commission from the lender and he was privvy to better mortgage deals than was publically available.
So brokers are the way to go and don't let them charge you.

hi

whatever you do, get a repayment as the endowments dont allow you to reduce youur balance. also, the endownment policies dont make enough money to pay off your mortgage at the end of the period. i dont like going to financial advisors as they sell 'favourite' products that earn them commission. the ones ive looked at recently include halifax and egg.com

good luck and let me know if you find any good deals as id like to re-mortage

cheers

mad

I would love to hear your supportive evidence for your bold statement.   

"the endownment policies dont make enough money to pay off your mortgage at the end of the period"  

Is this a statement of fact or just your personal view re: mortgages presented in the form of a factual statement. Please feel free to qualify your statement because I believe it to be at worst incorrect but more importantly misleading to people who are uncertain re: mortgages. There are cases inwhich an endownment have failed to live upto their projected growth and hence a shortfall occurs but this has largely resulted when a savings plans has been sold with a highly unrealistic projected annual growth of 12% plus. Oh for the joy of the yuppie years. Current saving plans are sold based on illustrations of a more consentive annual growth of 6%.

Are you also aware of the benefits ot an endownment vs a repayment mortgage. A repayment is not a suitable product for all people such as people who move on a frequent basis eg once every 7 years.

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12%, or so I'm told, didn't seem highly unrealistic at the time.

Just like 6% seems conservative just now. In 20 years, after a worldwide fuel crisis/World War 3 or some similar jazz, 6% may seem, in hindsight, to have been highly unrealistic too.

People have been burned with all types of mortgages, not just endownments. But I wouldn't blame someone for being skeptical as to an endownments benefits if they knew someone for whom a shortfall has caused them serious problems.

For an endowment to be more advantageous than repayment, the underlying investment must grow at a higher rate than the interest paid on the loan.  While this was reasonable prospect in times of higher inflation and tax relief, it simply isn't worth the risk under present economic conditions.  The other consideration in the heyday of the endowment was that much higher pay rises reduced the cost of payments, so a shortfall wasn't likely to be a problem - but nowadays shortfalls could be a significant problem if they occur, increasing risk. 

Endowments suck these days as a vehicle to pay off your mortgage.

Part of the reason they suck is that the broker gets a large commision out of every months payment.

I personally would much rather use a tracker ISA. I pay less than half a percent charges on mine.

Safest way or course is a repayment mortgage.

All just imho ;)

I don't believe I blamed anybody for being skeptical all I did was challenge somebody to qualify their statement which is wrong and misleading.

Re: a % of growth the 12% was indeed not unrealistic at the point in time they were being quoted as these were the returns at that time. However this was over a short term period. What was unrealistic was thinking these rate of returns would continue longterm such as over 25 years as is the normal term of a mortgage. With reference to illustrating any return of a longterm investment it is however reasonable to look at the shares market over the long term rather than short term. The shares market over any longtime period has comfortably out performed the 6%.

And I agree Byronkincaid endownments are not the best investment vehicle and told Stallyon this in my pm to him. As regards a repayment mortgage being the safest indeed it is as you know for a FACT it will pay the mortgage off at the end of the term. However many a person is lead into a repayment mortgage and the fact is that it is not the best for them and infact ends up costing them more in the longterm.

 
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No handbags. But what's wrong with me highlighting some incorrect information which may mislead somebody into doing which ends up costing them. Godforbid trying to help somebody. Sorry if this offends you. I know you comment was in good faith but the fact is it is wrong and I questioned it accordingly.

Rather than the unhelpful and tad childish response of "handbags" and smilies why not justify your original statement and correct me if you think I am so out of order.

How about the unhelpful and tad childish "easy tiger"  :D

The 12% offered as a LONG tem return,in the mid 80's,was unrealistic. which its why industry analysts, who  produced the point of sales brochures,at that time used to outline three projected returns, which might be concidered before making your choice of policies.
The brokers however being salesman highlighted the better returns, to use the likelyhood of
what could be expected at the end of term,including a nice juicy BONUS.
Like pearls before swine the majority of people, who rely on these salesman for their long term future, were taken in.
The so called experts, should have known that over the long term economic cycle, rates fluctuate,these hedonistic days could'nt last.
In case you think I am talking with the benifit of hindsight,I would like it known that I took out my first mortgage in the mid eighties........I have have never had that "Your payments ar'nt enough to insure your debt will be met at the term end" letters.
Cos I for one realized that when The SUN produces a money page .......its time to batten down the hatches and think conservately. ;tk;

i wouldnt go for a repayment structured mortgage, but for a completely different reason.....

the best (IMHO) is to take out an interet only mortgage, and then make regular overpayments to it, of the amount that the repayment part would be, or more if you feel comfortable with it. This gives you flexibility, so that in the future if your personal income situation changed, you would be better placed to cope with it - ie you may only have to find £500 per month, rather than £700 per month.

I have a repayment mortgage which allows this, i can pay what i like (even less than my actual repayment), i can also take payment holidays.
I'm not really sure if it's a good or bad thing but i also have a long term ISA which matures when i'm 55, the plan is to use that money to last me till i get my company pensions.
I seriously doubt that the state one will exist then.

My 16 year old endowment for 20k informed me a couple of years ago that it was on target to to pay only 10k and that I should take action to ensure that I could cover the shortfall.

ul celtic,there are meny it that boat.