# ridiculous mortgage!

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**1**L2, GC, Surrey, OH, TX!

Thread Starter

Joined: Aug 2007

Location: Surrey to Dallas (via Ohio)!

Posts: 6,358

**ridiculous mortgage!**

Our house in the UK has an interest only mortgage on it - as when we left the uk we had to get the monthly repayments as close to (preferably under) the anticipated rental we could get for it. Both mortgage and rental were in excess of 1000 GBP per month at that point. (repayment buy to let mortgages came in above the rental rate so we couldnt afford to go there!).

Anyways - with the rate dropping every few months or so the mortgage payment has been going down and down - and the letter we recieved yesterday just took the biscuit. The whole payment is now a paltry 54 GBP!

If it goes much lower they will be paying us!

Now we just gotta see if we can switch back to a repayment mortgage so we get more paid off!

Anyways - with the rate dropping every few months or so the mortgage payment has been going down and down - and the letter we recieved yesterday just took the biscuit. The whole payment is now a paltry 54 GBP!

If it goes much lower they will be paying us!

Now we just gotta see if we can switch back to a repayment mortgage so we get more paid off!

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**2****Re: ridiculous mortgage!**

Are you allowed to do like you do here.. send in an additional principle payment, separate from your obligated payment?

Save you the hassle of re-doing paperwork if so.

Save you the hassle of re-doing paperwork if so.

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**6****Re: ridiculous mortgage!**

US mortgage products are far superior to UK ones. AFAIK, the option to chuck extra on the principal usually just isn't there.

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**7****Re: ridiculous mortgage!**

depends on the mortgage, if you pay it off early you might get penalties on it to off set them not making as much money off you...

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**8****Re: ridiculous mortgage!**

The more I hear about UK mortgages the less I like. I like that I can bung a bit extra onto the bill for the principal and pay it off and that I have no prepayment penalties and the rate is fixed for the life of the loan (15 years in our case) only 7 years to go.

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**9****Re: ridiculous mortgage!**

Anyways - with the rate dropping every few months or so the mortgage payment has been going down and down - and the letter we recieved yesterday just took the biscuit. The whole payment is now a paltry 54 GBP!

If it goes much lower they will be paying us!

Now we just gotta see if we can switch back to a repayment mortgage so we get more paid off!

If your original interest rate was 7%, you would now be paying less than 1/2% if you are only paying 54 GBP. If that was the case, you could purchase secure UK government bonds with the remaining 946 GBP and make a large amount of money.

So can someone explains how it works in the UK.

*Last edited by Michael; Mar 30th 2009 at 1:16 am.*

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**10****Re: ridiculous mortgage!**

Anyways - with the rate dropping every few months or so the mortgage payment has been going down and down - and the letter we recieved yesterday just took the biscuit. The whole payment is now a paltry 54 GBP!

If it goes much lower they will be paying us!

Now we just gotta see if we can switch back to a repayment mortgage so we get more paid off!

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**11**Lost in BE Cyberspace

Joined: Feb 2004

Posts: 13,738

**Re: ridiculous mortgage!**

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**12****Re: ridiculous mortgage!**

I'm trying to figure out how that is possible. I would think that adjustable mortgages are based on some index like in the US (usually 1%-2% above an index). If it is based on the 10 year Gilt (currently 3.26%), then I would suspect that you would still be paying 4%-5%.

If your original interest rate was 7%, you would now be paying less than 1/2% if you are only paying 54 GBP. If that was the case, you could purchase secure UK government bonds with the remaining 946 GBP and make a large amount of money.

So can someone explains how it works in the UK.

If your original interest rate was 7%, you would now be paying less than 1/2% if you are only paying 54 GBP. If that was the case, you could purchase secure UK government bonds with the remaining 946 GBP and make a large amount of money.

So can someone explains how it works in the UK.

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**13**L2, GC, Surrey, OH, TX!

Thread Starter

Joined: Aug 2007

Location: Surrey to Dallas (via Ohio)!

Posts: 6,358

**Re: ridiculous mortgage!**

If your original interest rate was 7%, you would now be paying less than 1/2% if you are only paying 54 GBP. If that was the case, you could purchase secure UK government bonds with the remaining 946 GBP and make a large amount of money.

So can someone explains how it works in the UK.

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**14****Re: ridiculous mortgage!**

I paid of my UK Mortgage by overpaying when interest rates dropped a long time ago. The one I have now also allows me to overpay.

But repayment of capital would not impact the tax aspect, which is I think the issue.

But repayment of capital would not impact the tax aspect, which is I think the issue.