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ridiculous mortgage!

ridiculous mortgage!

Old Mar 30th 2009, 3:17 pm
  #16  
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Default Re: ridiculous mortgage!

as it's an interest only mortgage then how can you overpay?

you'd need to switch to a repayment mortgage - most of the fixed rate mortgages you can overpay without penalty (we used to) up to a certain % of the outstanding principal each year.
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Old Mar 30th 2009, 3:21 pm
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Default Re: ridiculous mortgage!

Originally Posted by jmh
Depends on the mortgage. I am just coming out of a fixed rate that allowed up to 10% extra paid off each year, which is quite common. However it may not be on an interest only mortage.
My observation is that US loans in general seem to be much more flexible than European ones.
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Old Mar 30th 2009, 3:30 pm
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Default Re: ridiculous mortgage!

Originally Posted by big_fish
as it's an interest only mortgage then how can you overpay?

you'd need to switch to a repayment mortgage - most of the fixed rate mortgages you can overpay without penalty (we used to) up to a certain % of the outstanding principal each year.
Yeah good point. And I guess they will charge a fee to change mortage type.
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Old Mar 30th 2009, 4:12 pm
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Default Re: ridiculous mortgage!

The 1p mortgage info:

http://www.telegraph.co.uk/finance/p...s-slashed.html
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Old Mar 30th 2009, 4:58 pm
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Default Re: ridiculous mortgage!

Originally Posted by fatbrit
My observation is that US loans in general seem to be much more flexible than European ones.
Yeah, look where *that* got us....
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Old Mar 30th 2009, 5:33 pm
  #21  
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Default Re: ridiculous mortgage!

Originally Posted by meauxna
Yeah, look where *that* got us....
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Old Mar 30th 2009, 9:30 pm
  #22  
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Default Re: ridiculous mortgage!

Maybe that is one of the reasons that most large British banks are considered in worse shape than most large American banks. Hard for a bank to make money when it pays more for money than it gets.

About 3 weeks ago (before the latest rally), I was looking at possibly investing in preferred shares in banks in the US and Europe because of the dividend yield offered by the banks (only good if they don't go bankrupt, become fully nationalized, or quit paying the dividend). The dividend yield at that time for US large banks was between 8%-16% for the better US banks (JP Morgan, Goldman Sachs, US Bancorp, and Wells Fargo) but were between 21%-33% for the more troubled US banks (Citigroup or Bank of America).

When I checked the dividend yield of British banks (RBS, Lloyds (HBOS), HBSC, and Barclays), the dividend yields were between 33%-43%.

After the last stock market rally, the dividend yields for all the banks (both US and European) are significantly down but most large British banks are still yielding between 21%-31%.

As an example, the preferred shares for RBS (NYSE symbol RBS-P) has a face value of $25 per share, a coupon rate of 6.25%, is currently selling for $5.04, and produces a current dividend yield of 31%.

http://www.quantumonline.com/search....-P&sopt=symbol
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Old Mar 31st 2009, 5:37 pm
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Default Re: ridiculous mortgage!

Originally Posted by fatbrit
My observation is that US loans in general seem to be much more flexible than European ones.
My opinion too. In the Uk they are all about prepayment penalties. Also the 30 year fixed rate mortgages are non existant in the UK, so everyone pretty much is forced to refinance at some point.

I love the fact we have one of those here, and can pay it off as fast as we please with no penalty, while at the same time knowing that the payment will never ever go up from what it is now.

My goodness - one financial type thing that is actually less of a ripoff in the US!!
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Old Mar 31st 2009, 6:26 pm
  #24  
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Default Re: ridiculous mortgage!

Originally Posted by Dan725
My opinion too. In the Uk they are all about prepayment penalties. Also the 30 year fixed rate mortgages are non existant in the UK, so everyone pretty much is forced to refinance at some point.

I love the fact we have one of those here, and can pay it off as fast as we please with no penalty, while at the same time knowing that the payment will never ever go up from what it is now.

My goodness - one financial type thing that is actually less of a ripoff in the US!!
Plus, the mortgage interest is tax deductible.
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Old Mar 31st 2009, 6:28 pm
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Default Re: ridiculous mortgage!

Originally Posted by Dan725
My opinion too. In the Uk they are all about prepayment penalties. Also the 30 year fixed rate mortgages are non existant in the UK, so everyone pretty much is forced to refinance at some point.

I love the fact we have one of those here, and can pay it off as fast as we please with no penalty, while at the same time knowing that the payment will never ever go up from what it is now.

My goodness - one financial type thing that is actually less of a ripoff in the US!!
Then they f*** you by getting your tax for bonus money!
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Old Mar 31st 2009, 8:05 pm
  #26  
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Default Re: ridiculous mortgage!

Originally Posted by Mallory
Plus, the mortgage interest is tax deductible.
Originally Posted by anotherlimey
Then they f*** you by getting your tax for bonus money!


By and large, I do have to say I do like the added control you get over your tax here; the mortgages and the interest relief (I remeber that joke MIRAS in the UK - they kept limiting it, and limiting it till it effectively was worth nowt before stopping the pretence and binning it altogether). So in my opinion - taxes and mortgages in the US vs UK, good.

But - what goes in one pocket comes straight out the other - with lunatic insurance premiums, the legalized highway robbery of medical billing, and greedy b'stard 6% realtor fees..etc...
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