# My Mortgage



## ♥Saila♥ (Mar 27, 2006)

I've just got a letter saying in December my mortgage will go to the variable rate.

Does this mean it will be cheaper? My current rate is about 7% and I am paying about £924 a month  I don't really want to pay anymore I can't afford to!!!

Can anyone advise??

xxx


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## swhattie (Feb 9, 2009)

We also got a letter similar from Natwest - our fixed two years is up and we were paying something like 7% also - the variable rate at the moment is 4% according to the letter - so a good saving really - it shouldnt go up on the variable rate...

XXX


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## Mish3434 (Dec 14, 2004)

Salia,  Now could be a good time to shop around if your current lender's new rate isn't too good.  Give them a ring and ask them what the rate is

Shelley x


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## ~ S ~ (Oct 27, 2003)

Hi Saila

I would suspect that your banks SVR (standard variable rate) is substantially lower and you will have a nice monthly saving  

Just give them a call and they will tell you exactly how much your repayment will be (assuming rates don't change between then and now  ). 

Be warned though, they'll probably want to 'sell' you a new deal which if you do want to do, make sure you seek some independent advice as well as seeing what deals your current lender will offer you as an existing customer  

S x


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## ☼♥ Minxy ♥☼ © (Jan 13, 2005)

Hi hun

As "S" says, maybe a good time to shop around but a moment, the variable rate is good.  I don't really have much to do with our mortgage as DP deals with it all (I'm rubbish with money and just spend it  )....I just go along with whatever he says...our mortgage went right down (don't ask me to what !) but it's now around £550 a month.....but we're still paying the higher rate (£750) as we can still afford to and means we pay the mortgage off quicker.  Even if yours goes down but you can keep paying over then maybe something to consider too ?

Hope you're ok chick 

N xx


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## ~ S ~ (Oct 27, 2003)

Minxy - that is an extremely good point and one very much worse considering if you can afford to do so. It's amazing what a difference it can make to your mortgage balance in the longer term


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## Mish3434 (Dec 14, 2004)

We have a "One" account and it is fab, no penalties for overpaying each month   

Shelley x


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## ♥Saila♥ (Mar 27, 2006)

Thanks for the fabby info girls!!

What is a one account??

xx


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## Mish3434 (Dec 14, 2004)

A one account is where all your money is in one "pot" so to speak, you pay a set amount of interest each month (interest only) and any money not spent in the account is offset against your mortgage and the interest is taken from this final amount owing each month! You do have to be quite good with money (thats my husbands job  )to manage the account correctly, especially when you have a much bigger pot than you do mortgage! You can in theory pay off your mortgage years earlier if used the right way.

Shelley x


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## annacameron (Dec 16, 2008)

Saila, /everyone - watch out for the following:

1. fixed rates - where the RATE is clear but the FEE is massive and really bumps it up overall
2. variable linked to YOUR BANK's rate - this can be ANYTHING they choose to set and you need to check it is competitive.
3. variable linked to the Bank of England rate or BASE RATE. Base rate is currently 0.5% so anyone with a mortgage linked to that has done extremely well.  

right now, if I were you I would:

1. find out what your bank's variable rate is
2. speak to some advsiers at eg "john Charcol" - a co that has consistently given me excellent advice after I took out one mortgage via them years ago - to find out whethger that variable rate is indeed competitive. 
3. establish whether there's a better "fix" around - charcol can also help on that.  

good luck


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## ☼♥ Minxy ♥☼ © (Jan 13, 2005)

that's what we've got....the variable linked to Bank of England...so the base rate.

Whilst both of us work in the city for financial institutions (me for a data company/large "pink" media company) and DP for a well known bank.....DPs far more clued up about money, has his own financial adviser (his mate - who is qualified and not just advising over a pint or 2 !!) and tbh, he deals with everything as I wouldn't have the first idea, all  know what to do is flex the plastic.....but he knows exactly what he's doing !!

N x


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## ♥Saila♥ (Mar 27, 2006)

We'll be going to interest only and paying about £300ish as opposed to the £900ish we've been paying  time to get some debts cleared off me thinks and finish house off!


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## ♥samonthemoon♥ (Apr 2, 2007)

Thats such a saving saila!!!! 

Like Minxy we are now on the BoE rate.... had a letter out of the blue a few months ago telling us that our mortgage had come down from £1200 to £800 roughly!!!! Was a very nice surprise as we thought we were tied into our fixed rate for another couple of yrs!!!  

Sam xXx


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## annacameron (Dec 16, 2008)

yes exactly 
the BoE idea in cutting rates from over 5% to the current 0.5% is to support economic activity by lower interest rates leaving more money in consumers' pockets. the consumer spends more and keeps others in jobs.


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## ☼♥ Minxy ♥☼ © (Jan 13, 2005)

annacameron said:


> yes exactly
> the BoE idea in cutting rates from over 5% to the current 0.5% is to support economic activity by lower interest rates leaving more money in consumers' pockets. the consumer spends more and keeps others in jobs.


Well not entirely cos we're paying the original costs so we pay off our mortgage quicker, not going out spending it elsewhere....although I could seriously do with paying off some of my credit cards as one of them decided to increase APR by 4%...cheeky b*ggers !! I'm just waiting for my promotional payrise so fingers crossed I'll be able to clear them !


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## ♥Saila♥ (Mar 27, 2006)

I definately will be clearing credit cards, overdrafts and anything else... eg Next account!! 

xxx


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## annacameron (Dec 16, 2008)

Natasha, those who pay off mortgages earlier by keeping same payments each month and applying more to paying down principal) are reducing overall levels of UK debt and thereby improving banks' capital ratios, a further key aspect of what needs to happen to get UK plc back on track. Equally, if the banks' position solidifies, they can on lend your capital further. there is jsut basically more money circulating in the system which is all fine in the short term - and argubly needed - but inflationary in the medium term.


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## ☼♥ Minxy ♥☼ © (Jan 13, 2005)

♥Saila♥ said:


> I definately will be clearing credit cards, overdrafts and anything else... eg Next account!!
> 
> xxx


Sounds like a plan hun !! I hate looking at all my card accounts....oh and Next too, although I've got very little on that !! 



annacameron said:


> Natasha, those who pay off mortgages earlier by keeping same payments each month and applying more to paying down principal) are reducing overall levels of UK debt and thereby improving banks' capital ratios, a further key aspect of what needs to happen to get UK plc back on track. Equally, if the banks' position solidifies, they can on lend your capital further. there is jsut basically more money circulating in the system which is all fine in the short term - and argubly needed - but inflationary in the medium term.


Yes Anna....I'm aware of this...I was making light of it about not going out spending and wanting to pay off my cards (you were talking about more money in consumers pockets)

I work in the City, as does my boyfriend....and we both work for very large, international, well known financial institutions so fairly well versed in what's going on with the economy...in fact the company I work for is vitally linked to the economy in many respects (without going into actual details of who I work for!).....although I'm not so clued up on what to do about it personally as I leave that to DP, as I said, I'm better at spending than saving !!


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## Mish3434 (Dec 14, 2004)

I got very badly burnt during my first marriage he left me in a HUGE amount of debt due to his love of Credit Cards, Store Cards, Loans etc.  This time we are very strict on no cards of any description my new DH (well almost new! been married nearly 10 years haha) is great with money and is never tempted.  That's why we went for a one account, everything can be seen at a glance, no more dreading the postman, of which I did everyday of my first marriage.

x


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