£600 per month for 5 years!

When the other folders just won't do!

Moderators: mknott, NickThorpe, lcarlson, Darran@Retro Gamer, MMohammed

User avatar
crusto
Posts: 5586
Joined: Mon Feb 16, 2009 8:18 pm
Location: Birmingham

£600 per month for 5 years!

Post by crusto » Tue Feb 05, 2013 7:01 pm

Ok, so I went to see my financial adviser today as its mortgage renewal time (yay). Anyway, we borrowed at this time 5 years go so we could do some renovations to and extend our house. The financial advisor strongly urged us to get a tracker but as we were close to our "limit" my wife insisted that we opt for the relative safety of a fixed rate, worried that the rates might rise. Needless to say we all know what happened later that year.

Hindsight is wonderful etc etc. in all honesty I assumed I was worse off to the tune of £200 or so per month. And being as my redemption penalty was too high to change it, I buried my head so to speak. I found out today that I would have saved approx £600 per month for the vast majority of the term. So yeah, I reckon I've just lost around £30000 by playing it safe. :cry:

So I just thought if anyone is feeling a bit miserable today they could cheer themselves up by reading this..

Note to self, always take financial advisers financial advice.
Image

Eat your nans pants

User avatar
markopoloman
Posts: 11657
Joined: Thu Dec 01, 2005 9:03 pm
Location: Poole, Dorset

Re: £600 per month for 5 years!

Post by markopoloman » Tue Feb 05, 2013 7:33 pm

Ouch! Thats a bugger.

Financial advisers are not always correct though... When we re-mortgaged about 7 years ago (to build a nice big extension), he advised us to go on interest only until we were sorted (and review in 3 years and remortgage again but on a repayment - then the banks blew up, hell froze over and re-mortgages became swear words). Needless to say, 7 years later we are still on interest only and no 'back-up plan' to build up money to pay off at the end.

Where is the financial adviser now? No longer works in the trade - we used him for 15 years!!!).

Hmmmm must sort that out I suppose :roll: :oops:
OFF TOPIC DISCUSSIONS - http://retrocanteen.boards.net/

User avatar
r0jaws
Posts: 1860
Joined: Fri Dec 11, 2009 3:48 pm

Re: £600 per month for 5 years!

Post by r0jaws » Tue Feb 05, 2013 7:54 pm

We've not long bought our first home. I don't even want to know which horrendous financial mistakes I have probably made. The first was not getting a full survey of the place (which is actually in perfectly good shape for a building of it's age) but there's nothing like hearing a few horror stories to sharpen the old "what have I done??!!" buyers remorse reflex.
At least I have sorted the internet connection out (after 4 months).

User avatar
ReplayRetro
Posts: 1074
Joined: Thu Nov 18, 2010 7:38 am
Location: Leeds

Re: £600 per month for 5 years!

Post by ReplayRetro » Wed Feb 06, 2013 3:11 am

That really sucks! but like you say, hindsight is a wonderful thing and things could easily have swung the other way leaving you unable to pay!

We've all made mistakes that cost us money but as long as you can afford to get by then there's no sense getting upset or stressed
and besides . . . . . count yourself lucky you're even on the property ladder, i can't get a deposit together because there's always something to eat into the money, and even if i could save properly the kind of deposits they want are so high i'd be saving for so long it'd barely be worth it, and then they wonder why the property market won't get moving again
Visit www.youtube.com/replayretro . why? well erm, cos it would be awfully friendly of you to take a look i guess, you don't have to though, nobody will make you *sob sob*

User avatar
the_hawk
Posts: 5852
Joined: Sun Jun 29, 2008 4:25 pm
Contact:

Re: £600 per month for 5 years!

Post by the_hawk » Wed Feb 06, 2013 5:46 am

Absolutely, nobody could have foreseen that interest rates would have been so low for so long.

We were on a 5 year fixed rate up until a few years ago & while we did lose out on quite a bit as a result (admittedly nowhere near £30k :shock: ) at least we had the assurance of what we were paying each month, because as RR pointed out it could easily have swung the other way & we'd have been at the mercy of the markets.
You can follow me on Twitter https://twitter.com/DaveySloan
Sponsor Me http://www.justgiving.com/daveysloan2014

OR type 99 to continue

User avatar
Matt_B
Posts: 5465
Joined: Wed Mar 14, 2007 5:30 am
Location: 5 minutes from the beach, 30 seconds from the pub

Re: £600 per month for 5 years!

Post by Matt_B » Wed Feb 06, 2013 5:58 am

It could have been worse, you could have had an endowment mortgage.

User avatar
Commander Jameson
Posts: 1350
Joined: Mon Jun 04, 2007 10:55 am
Location: Chesterfield,UK

Re: £600 per month for 5 years!

Post by Commander Jameson » Wed Feb 06, 2013 8:08 am

crusto wrote:Ok, so I went to see my financial adviser today as its mortgage renewal time (yay). Anyway, we borrowed at this time 5 years go so we could do some renovations to and extend our house. The financial advisor strongly urged us to get a tracker but as we were close to our "limit" my wife insisted that we opt for the relative safety of a fixed rate, worried that the rates might rise. Needless to say we all know what happened later that year.

Hindsight is wonderful etc etc. in all honesty I assumed I was worse off to the tune of £200 or so per month. And being as my redemption penalty was too high to change it, I buried my head so to speak. I found out today that I would have saved approx £600 per month for the vast majority of the term. So yeah, I reckon I've just lost around £30000 by playing it safe. :cry:

So I just thought if anyone is feeling a bit miserable today they could cheer themselves up by reading this..

Note to self, always take financial advisers financial advice.

This is EXACTLY what has just happened to me, except we bought a house exactly 5 years ago next month, and we locked in to 5 years fixed - literally the month after the house lost about 30 grand and there we were paying 770 a month when interest rates plummeted. Didn't I feel stoopid. We locked in for the same reason you did - we were right at the edge of what we could afford.
We couldn't even take the penalty and dive out of that mortgage cos no-one would sell us a mortgage for more than the house was worth, so we, like you, just had to man up and weather it.
Got a quote last month now that interest rates are rock bottom again, guess what - £600 a month. I'm £170 better off a month. Tempted to lock that in for 5 years again tbh, whaddya think? Certainly not in the £600 league tho, man I feel for you.

Only redeeming factor is that I've ben paying off several grand in Credit Card bills by 'tarting' around different cards -saved thousands ininterest payments, that's done with in a couple of months. :D
Image

User avatar
Rinoa
Posts: 5046
Joined: Fri Oct 24, 2008 11:47 am
Location: Liverpool
Contact:

Re: £600 per month for 5 years!

Post by Rinoa » Wed Feb 06, 2013 10:59 am

I did pretty much exactly the same too - got a mortgage 5 years ago next month on Fixed Rate at around 6.6% interest. The Fixed Rate ended a couple of months back, and I'm about £300 better off each month now.

On one hand it's a shame we didn't take a gamble and opt for something other than Fixed Rate, but had interest rates swung in the other direction we'd have been in trouble so playing it safe was the only option we could have considered at the time.
Image

User avatar
Mayhem
Posts: 4741
Joined: Wed Nov 30, 2005 7:05 pm
Location: London
Contact:

Re: £600 per month for 5 years!

Post by Mayhem » Wed Feb 06, 2013 12:01 pm

I was on a tracker, and when the last one expired in 2010, the rate for a new tracker was stupidly high for some reason (like 5.5%!) and we just let it slip into SVR instead which was sitting around 2.5% instead. Nothing has changed and we're a good 200 quid or so better off each month not being locked into something.
Lie with passion and be forever damned...

Image

RetroRevival
Posts: 636
Joined: Thu Nov 09, 2006 5:34 am

Re: £600 per month for 5 years!

Post by RetroRevival » Wed Feb 06, 2013 5:35 pm

Thank feck for social housing !

User avatar
clarance
Posts: 2702
Joined: Thu Sep 18, 2008 12:54 pm
Location: The Fens
Contact:

Re: £600 per month for 5 years!

Post by clarance » Wed Feb 06, 2013 5:48 pm

Great, a thread where old farts fluff themselves over their mortgages :|

Can we have this thread stickied please mods?
Death may be your Santa Claus.

User avatar
crusto
Posts: 5586
Joined: Mon Feb 16, 2009 8:18 pm
Location: Birmingham

Re: £600 per month for 5 years!

Post by crusto » Wed Feb 06, 2013 6:32 pm

I think that would be a great idea :lol:
Image

Eat your nans pants

User avatar
markopoloman
Posts: 11657
Joined: Thu Dec 01, 2005 9:03 pm
Location: Poole, Dorset

Re: £600 per month for 5 years!

Post by markopoloman » Wed Feb 06, 2013 7:58 pm

Would you like it stickied for a fixed amount of time?
OFF TOPIC DISCUSSIONS - http://retrocanteen.boards.net/

User avatar
djcarlos
Posts: 4198
Joined: Thu Dec 07, 2006 5:57 am
Location: Just outside the Imperial Capital Of Seaford

Re: £600 per month for 5 years!

Post by djcarlos » Thu Feb 07, 2013 3:12 am

Yes, I think it's very interest-ing.

:oops:
Image

DoraemonTheCat
Posts: 1142
Joined: Thu Oct 25, 2012 2:55 pm

Re: £600 per month for 5 years!

Post by DoraemonTheCat » Thu Feb 07, 2013 8:31 am

I went to the Casino with a few friends a couple of weeks ago (for a Birthday)

After the meal and drinks, a few of us decided to play the tables. No major money, odd £20-£30 on roulette and Blackjack.

Anyways, I changed £30 and was playing Blackjack. There is a side bet that revolves around getting Aces in your hand - it's one of those Jackpot meters that goes up every time played. It must be ultra rare to get what is needed for the Jackpot - which I have since learned is 4 Aces the same colour (not the same suit)

You can tell where this is going, right?

That's right - I had 4 same colour Aces on one of my hands.

If I had played the side bet, I would have won £55,628.18.

Life changing money as they seem to call it on Deal Or No Deal. I've felt like a tool ever since.

Post Reply

Who is online

Users browsing this forum: No registered users and 4 guests