Reply to: Bank eyes rate cut and £50bn cash injection to boost economy

[mercenary]

If only the banks had not given so many interest only loans

Nothing wrong with IO so long as you use them sensibly - pay down lumps when possible etc.

[Doggy Styles]

Offset mortgages , you can pay the lot off.

Or indeed overdraft mortgages, which are even easier.

[Old Hack]

Offset mortgages , you can pay the lot off.

Most don't have them though. I thought, standard, in a mortgage, you couldn't pay more than 10%, so haven't bothered throwing all the rent in to the mortgages. Fecking idiotic not reading T&C's properly.

Mortgages are low, around £300 a month interest only, rents between 1000-1200 so it's been frankly stupid if I can pay them off more than 10% a year.

Wheres the slap face smiley...

[Old Hack]

Thats a tulip tattoo on her arm!

She has a tattoo?

[MarillionFan]

...and I believe overpayments of only 10% are normally allowed without penalty...

Offset mortgages , you can pay the lot off.

[Scrag Meister]

...and I believe overpayments of only 10% are normally allowed without penalty...

In my case this is only during the "product period", i.e first 3 years then I can pay what I like. So come October I will be revving up the repayments.

0.25% reduction would only mean saving £100 per month to me on the couple of mortgages I have.

[oscarose]

Thats a tulip tattoo on her arm!

Seen a lot worse old chap.

[Mich the Tester]

Thats a tulip tattoo on her arm!

Wouldn't stop me.

[Martin@AS Financial]

If only the banks had not given so many interest only loans

Most banks allow you to overpay your mortgage by upto 10% a year and this is not dependent on whether your mortgage is interest only or on a repayment basis. Ideally, your mortgage interest is calculated on a daily basis. Therefore you will feel the benefit of any overpayment you make the next day.

[scooby]

+1

Thats a tulip tattoo on her arm!

[lilelvis2000]

Indeed, if it didn't work the first time and the second time, what the hey, it may work the third time!

I can see the headlines six months from now...record inflation causing misery.

[Old Hack]

If only the banks had not given so many interest only loans

...and I believe overpayments of only 10% are normally allowed without penalty...

[oscarose]

This thread needs girls

+1

[alreadypacked]

It depends if banks decide to reduce the margins on tracker rates to help new borrowers to stimulate the housing market. For existing borrowers, it provides the opportunity to pay their existing mortgage down more quickly by making overpayments above and beyond their normal payment.

If only the banks had not given so many interest only loans

[Martin@AS Financial]

Seriously though, even though without the collar what difference would another 0.25% cut make to mortgage payments after all the previous cuts?

It depends if banks decide to reduce the margins on tracker rates to help new borrowers to stimulate the housing market. For existing borrowers, it provides the opportunity to pay their existing mortgage down more quickly by making overpayments above and beyond their normal payment.