Mortgages and Offsetting
Discussion
Gents, I am due a remortgage next summer (I think) currently repayment fixed at about 5% with the Abbey (yes, I know, but I was bricking it 2 and a half years ago and wanted peace of mind). Cost is about 800 squids a month, on about 120k borrowed (property is now worth about 165-170k).
Have seen a few scary articles about interest rates rising over the next couple of years. Now, I'm not living in teh property at the moment, but do have a lodger sorted out (family favour) and she can give me about 5-600 rent. I had a quick look at the One Account mortgage shrinker, and based on my savings of 8k, and paying in £500 a month, based in the following:
Val 165k
Bal 120k
Term 22 years
Reduces from 22years (at 3.75%) and total repayment of 176k, to 9 years 6 months and 141k (at 1.6%).
Given that I am offshore, and can afford the £500 top-up, am I better off off-setting over refixing again for 5 years (say)? I assume the oneaccount is a tracker, and interest rate rises may well affect the repayment terms I quoted above? It just seems a bit too good to be true.
I'm also concerned about interest rate rises:
1. Increasing mortgage costs if not fixed
2. Strengthening GBP against SGD
Complex scenario, but all thoughts appreciated and welcomed!
Have seen a few scary articles about interest rates rising over the next couple of years. Now, I'm not living in teh property at the moment, but do have a lodger sorted out (family favour) and she can give me about 5-600 rent. I had a quick look at the One Account mortgage shrinker, and based on my savings of 8k, and paying in £500 a month, based in the following:
Val 165k
Bal 120k
Term 22 years
Reduces from 22years (at 3.75%) and total repayment of 176k, to 9 years 6 months and 141k (at 1.6%).
Given that I am offshore, and can afford the £500 top-up, am I better off off-setting over refixing again for 5 years (say)? I assume the oneaccount is a tracker, and interest rate rises may well affect the repayment terms I quoted above? It just seems a bit too good to be true.
I'm also concerned about interest rate rises:
1. Increasing mortgage costs if not fixed
2. Strengthening GBP against SGD
Complex scenario, but all thoughts appreciated and welcomed!
dingg said:
Can't help with your query but would be interested to know how much 8000 sgd/mnth would go towards living costs on single basis in singapore , my company has offered this as subsistance allowance whilst ship is converted next year.
tia
May be better popping this on the Asia forum, but are you talking monthly spending money, or would you have to pay rent/bills etc. It's either plenty, or not enough. HTH.tia
Bing o said:
dingg said:
Can't help with your query but would be interested to know how much 8000 sgd/mnth would go towards living costs on single basis in singapore , my company has offered this as subsistance allowance whilst ship is converted next year.
tia
May be better popping this on the Asia forum, but are you talking monthly spending money, or would you have to pay rent/bills etc. It's either plenty, or not enough. HTH.tia
$1k utilities and sundries
$500 - 1k transport
$2 - 5k beer and fun (depending on drinking rate like Don or not!)
$1k food and general stuffs
$800 tax
etc etc It "can" get expensive here but can also be cheap, depends on how you plan to live. Further details in Asia forum
Bing o - not a scooby
mortgages for owner occupiers are different to buy to let products and lenders are keener to differentiate now than a few years ago
one account isn't a buy to let product according to
http://www.oneaccount.com/onev3/who/toa-who.shtml
one account isn't a buy to let product according to
http://www.oneaccount.com/onev3/who/toa-who.shtml
JPJPJP said:
mortgages for owner occupiers are different to buy to let products and lenders are keener to differentiate now than a few years ago
one account isn't a buy to let product according to
http://www.oneaccount.com/onev3/who/toa-who.shtml
What slightly confuses things is that I'm not on BTL at the moment, and I won't be letting the property out through an agent - basically, mum will be house-sitting. However, I'm a straight up bloke (for all that it costs me) then I will declare it as a BTL if it qualifies. In fact, fone account isn't a buy to let product according to
http://www.oneaccount.com/onev3/who/toa-who.shtml
k it, I'm not a UK resident, so that doesn't work either!Anyone got any suggestions as to who may be able to help?
Bing o said:
XJSJohn said:
Bing o said:
Anyone got any suggestions as to who may be able to help?
have a chat with Adrian. 
Bing o said:
dingg said:
Can't help with your query but would be interested to know how much 8000 sgd/mnth would go towards living costs on single basis in singapore , my company has offered this as subsistance allowance whilst ship is converted next year.
tia
May be better popping this on the Asia forum, but are you talking monthly spending money, or would you have to pay rent/bills etc. It's either plenty, or not enough. HTH.tia
dingg said:
Bing o said:
dingg said:
Can't help with your query but would be interested to know how much 8000 sgd/mnth would go towards living costs on single basis in singapore , my company has offered this as subsistance allowance whilst ship is converted next year.
tia
May be better popping this on the Asia forum, but are you talking monthly spending money, or would you have to pay rent/bills etc. It's either plenty, or not enough. HTH.tia
Im looking at an offset mortgage at the moment and seeing what they can offer me, I can shift the money and get it down to 75% or 65% that they demand and then I presume it will work in my favour if I stay contracting for another year or 2, then wind up the business and shift the better part of £150k+ into the offset and then my mortgage is in the £80k bracket and Im paying little interest on that and happy days.
Tell me what you find out.
Tell me what you find out.
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