Mortgage Payments

[ratewhore]

Yes it's interest only.

We both always put £2k each into the joint (offset) account, and the extra is working itself up into a lovely little nest egg which will eventually pay off the mortgage, but in the meantime sit there available to us in times of need.

Larvely

my tax bill

[Turion]

2 Years ago we were paying £1500 per month.

Then it was £1200 for the last 2 years.


Now it is £520!

And how much is the house worth now, vs 1 year ago and what will it be worth in 1 yr? Hope the savings make up for that. Hope these savings also make up for prolonged bench time for you and partner.

The current low interest rates are solely a result of the recessionary economic turmoil we are in, and should not be a cause of celebration. Many more people, especially contractors, will be out of work during long terms and unable to service even these reduced repayments and unable to sell up without ruin. Go and cheer that babe.

[AtW]

When UK inflation really kicks in (imported due to weak pound) BoE rates could go up to 10%+.

[Cyberman]

When UK inflation really kicks in (imported due to weak pound) BoE rates could go up to 10%+.

I agree, but that means that house prices will also be rising by at least 10%.

[Lockhouse]

I agree, but that means that house prices will also be rising by at least 10%.

And the relative value of my mortgage will fall by 10%....

[SallyAnne]

And how much is the house worth now, vs 1 year ago and what will it be worth in 1 yr? Hope the savings make up for that. Hope these savings also make up for prolonged bench time for you and partner.

The current low interest rates are solely a result of the recessionary economic turmoil we are in, and should not be a cause of celebration. Many more people, especially contractors, will be out of work during long terms and unable to service even these reduced repayments and unable to sell up without ruin. Go and cheer that babe.

Our house hasn't devalued at all.
It was "our home that we plan to live in for a good 20 years" a year ago, and it is still "our home that we plan to live in for a good 20 years" now (and next year). Therefore it's sale price is still exactly the same.

As a contractor you can't say with 100% certainty that you'll not be benched at ANY time - recession or not. I dont know if I'll work all of 2009, much like I didn't know whether I'd work all of 2005/6/7/8. That's just the risk you take with the job.

I continue to with a big smile on my face - it makes a change for anyone to have anything financially to about these days, so I'm not going to pass the opportunity by!

[AtW]

Our house hasn't devalued at all.
It was "our home that we plan to live in for a good 20 years" a year ago, and it is still "our home that we plan to live in for a good 20 years" now (and next year). Therefore it's sale price is still exactly the same.

Interesting logic.

[Liability]

When UK inflation really kicks in (imported due to weak pound) BoE rates could go up to 10%+.

Do you really think so?

[AtW]

Do you really think so?

I think inflation is going to be an issue if pound continues to be so weak (which I think it will be), but so long as Nu Liebor are in power they won't allow BoE to raise rates to where they should be. It will need to happen sooner or later, either that or joining eurozone.

[Liability]

I think inflation is going to be an issue if pound continues to be so weak (which I think it will be), but so long as Nu Liebor are in power they won't allow BoE to raise rates to where they should be. It will need to happen sooner or later, either that or joining eurozone.

but the current gbp\euro rate is not reflective of the true abortive state of the euro nations - so that will have a delayed effect in getting the gbp back to somewhere where it was....surely? [or shirley]