When we wanted to extend recently, we were able to get more funds on the same conditions as our existing £1 mortgage, so were able to borrow £375k at 0.5% above base rate, i.e. 1%!!, ...
I urge you to urgently review your documentation and/or seek independent advice.
Even with the support of the "Funding For Lending" subsidy provided by the government (which was withdrawn last month for household lending), no UK lender has ever offered such a low margin on a residential mortgage.
I urge you to urgently review your documentation and/or seek independent advice.
Even with the support of the "Funding For Lending" subsidy provided by the government (which was withdrawn last month for household lending), no UK lender has ever offered such a low margin on a residential mortgage.
Cheers!
I double checked with my IFA when we researched the investment opportunities as to (a) exactly how much interest I would be paying and (b) what exit penalties there are. The mortgage is a standard variable rate one on the same Ts and Cs as when I got it in the mid 90s when interest rates were high.
As others have said deeds are irrelevant for most properties these days (unless they are old enough to be classed as an historical document or the house hasn't undergone transfer of ownership in several decades). Even in the latter case as soon as it gets sold the deeds will become electronic. The only reason really (and it's why I've done it) is because it keeps my mortgage open in case I have a sudden need for it. I've only got about £250 left and it's an offset mortgage so my current account nearly always means there's no interest to pay.
See post #9
Now, unless you are absolutely sure, is it worth the risk? Simply accepting advice from lay-people on a forum (rather than solicitors, mortgage professionals and estate agents who know exactly what the situation is and how it pertains to your house), however well-intentioned, can have serious implications if that advice is wrong.
I urge you to urgently review your documentation and/or seek independent advice.
Even with the support of the "Funding For Lending" subsidy provided by the government (which was withdrawn last month for household lending), no UK lender has ever offered such a low margin on a residential mortgage.
Of course they have. My mortgage tracks at 0.59% above base rate for the entire term. When all the credit crunch happens there were some mortgages tracking BELOW base rate (presumably for a short term period rather than the full term, but I don't know the details).
I urge you to urgently review your documentation and/or seek independent advice.
Even with the support of the "Funding For Lending" subsidy provided by the government (which was withdrawn last month for household lending), no UK lender has ever offered such a low margin on a residential mortgage.
It's a lovely feeling when you've paid off your mortgage isn't it .... Seem to be plenty on here who have.
We have paid off the mortgage several years ago on the house we live in and have just a tiny bit of mortgage left on a little house we own which we rent out. We were discussing leaving a bit on the mortgage just the other day. They used to recommend it years ago but times change.
Of course they have. My mortgage tracks at 0.59% above base rate for the entire term. When all the credit crunch happens there were some mortgages tracking BELOW base rate (presumably for a short term period rather than the full term, but I don't know the details).
It seems that I was mistaken and I apologise.
Further research reveals that some lenders did indeed offer trackers with margins below Bank of England base rate, albeit usually for limited periods so far as I can establish. They were presumably seeking to attract low risk business (low LTV, squeaky clean borrowers) but this nevertheless indicates a pretty cavalier and imprudent pricing methodology.
Clearly none of them expected the Bank of England base rate to fall to an all-time low, but they could (and should) have protected themselves from this possibility by offering heavy discounts below their standard variable rates instead. Because these rates are set by lenders themselves, this would have ensured a continuing positive return on variable rate loans, regardless of movement in market rates.
Linkage to SVRs has been the norm for donkeys' years for good reason, and any institution offering lifetime trackers at a margin below Bank of England base rate is/was making themselves a hostage to fortune.
I've just this month paid my last payment of my mortgage.
The admin fee for sorting the deeds etc is £125, but my lender said that if I keep a balance of £150 in there for 12 months then they'll not only waive the admin fee, but also keep the deeds for me.
So a bit of a no brainer then tbh.
Check to see if your mortgage company do something similar OP.
When we wanted to extend recently, we were able to get more funds on the same conditions as our existing £1 mortgage, so were able to borrow £375k at 0.5% above base rate, i.e. 1%!!, so borrowed this full amount and have reinvested £300k in relatively safe investments. Another couple of years and the returns on this £300k will pay off the extension.
As others say, the storage of the deeds is all irrelevant - the vast majority are stored electronically these days.
Theoretically, I need to tell my mortgage company who my buildings insurance is with, even for £1!
Same, we left a £1 on ours, paid 15 years early but kept endowment going, so glad we paid mortgage early as endowment paid out 2 years ago and would have been short of mortgage, but in the event of death to either one of us would have paid in full.
I've just this month paid my last payment of my mortgage.
The admin fee for sorting the deeds etc is £125, but my lender said that if I keep a balance of £150 in there for 12 months then they'll not only waive the admin fee, but also keep the deeds for me.
So a bit of a no brainer then tbh.
Check to see if your mortgage company do something similar OP.
I think I'll leave about 500 quid outstanding, I'm not really arsed about paying a few quid a month for a few more years more if they keep the deeds for me and it enables me to get another loan - which I MIGHT do despite what I said earlier, Keep your options open.
At the moment, the endownment maturity just can't come quick enough. 2 weeks to go.
that also occurred to me. Perhaps someone could enlighten us ?
I must say that I found there was no difference between "owned outright" and "owned - mortgage" when shopping around for buildings insurance for my particular circumstances.
I would guess that "owned outright" might be higher as you could do all sorts of stuff (like have dodgy lodgers) which you may have limitations on if you are mortgaged.
Comments
I urge you to urgently review your documentation and/or seek independent advice.
Even with the support of the "Funding For Lending" subsidy provided by the government (which was withdrawn last month for household lending), no UK lender has ever offered such a low margin on a residential mortgage.
Cheers!
I double checked with my IFA when we researched the investment opportunities as to (a) exactly how much interest I would be paying and (b) what exit penalties there are. The mortgage is a standard variable rate one on the same Ts and Cs as when I got it in the mid 90s when interest rates were high.
Now, unless you are absolutely sure, is it worth the risk? Simply accepting advice from lay-people on a forum (rather than solicitors, mortgage professionals and estate agents who know exactly what the situation is and how it pertains to your house), however well-intentioned, can have serious implications if that advice is wrong.
Of course they have. My mortgage tracks at 0.59% above base rate for the entire term. When all the credit crunch happens there were some mortgages tracking BELOW base rate (presumably for a short term period rather than the full term, but I don't know the details).
That's a lie.
Before I repaid mine, it was 0% Over Base.
We have paid off the mortgage several years ago on the house we live in and have just a tiny bit of mortgage left on a little house we own which we rent out. We were discussing leaving a bit on the mortgage just the other day. They used to recommend it years ago but times change.
It seems that I was mistaken and I apologise.
Further research reveals that some lenders did indeed offer trackers with margins below Bank of England base rate, albeit usually for limited periods so far as I can establish. They were presumably seeking to attract low risk business (low LTV, squeaky clean borrowers) but this nevertheless indicates a pretty cavalier and imprudent pricing methodology.
Clearly none of them expected the Bank of England base rate to fall to an all-time low, but they could (and should) have protected themselves from this possibility by offering heavy discounts below their standard variable rates instead. Because these rates are set by lenders themselves, this would have ensured a continuing positive return on variable rate loans, regardless of movement in market rates.
Linkage to SVRs has been the norm for donkeys' years for good reason, and any institution offering lifetime trackers at a margin below Bank of England base rate is/was making themselves a hostage to fortune.
Wind your neck in.
Making an incorrect statement in the absence of intent to deceive is not a lie.
See post #33.
The admin fee for sorting the deeds etc is £125, but my lender said that if I keep a balance of £150 in there for 12 months then they'll not only waive the admin fee, but also keep the deeds for me.
So a bit of a no brainer then tbh.
Check to see if your mortgage company do something similar OP.
Ok...
Your statement was the opposite of the truth...
... and the opposite of "true" is is "untrue", whereas a "lie" is something else entirely.
The difference should be blindingly obvious, hence my irritation at being accused of lying.
I'm glad you accept that your statement was untrue.
Thankfully, I have a Thesaurus to hand to give me some synonyms of "untrue":-
Deceptive
Dishonest
Erroneous
Fallacious
False
Inaccurate
Incorrect
Lying
Misleading
Mistaken
Sham
Spurious
Untruthful
Wrong
Honest and truthful...
Check a thesaurus. I recommend an Oxford one.
Same, we left a £1 on ours, paid 15 years early but kept endowment going, so glad we paid mortgage early as endowment paid out 2 years ago and would have been short of mortgage, but in the event of death to either one of us would have paid in full.
Our deeds are kept by them free.
that also occurred to me. Perhaps someone could enlighten us ?
I think I'll leave about 500 quid outstanding, I'm not really arsed about paying a few quid a month for a few more years more if they keep the deeds for me and it enables me to get another loan - which I MIGHT do despite what I said earlier, Keep your options open.
At the moment, the endownment maturity just can't come quick enough. 2 weeks to go.
I must say that I found there was no difference between "owned outright" and "owned - mortgage" when shopping around for buildings insurance for my particular circumstances.
I would guess that "owned outright" might be higher as you could do all sorts of stuff (like have dodgy lodgers) which you may have limitations on if you are mortgaged.