To mortgage or not to mortgage?

[GoldDiggerDave]

Just now, Darr3nG said:

I've been trying the figure this bit out... when I come to make the final payment, how do I do it?

Just ask for a final settlement free from the bank, you can ask for one now to see what it looks like, then ask for another one when you are ready to pay it in full. 

Once you get it it's just like paying any other BT.   

[treetop1280]

To be honest Iv learnt a lot on this page 👍, I started illegal taxi in belfast no outgoing all cash in a bad part of town ( taxi drivers were getting shot dead at the time ) so doing it legally was a death sentence ,  then went in the black taxis in the city centre , hammered it  night and day for 2 years , no holiday no eating out.  Mrs opened a beauty salon in the worst part of town , flat out all cash.   Kept it open till 8 every night , , cramped as much cash in the bank as possible ( banks didn’t care back then no questions 👍) borrowed money from family , gave cash to the solicitor and a cheque , bought the house outright no mortgage.   , hammered the taxi driving   , the beauty Salon and sun beds.   ,  payed every one back  , job done age 29 , put the house in the mrs name , then I went in to get a  load iof dodgy buy to let mortgages.  , bought houses , kept the rents , and payed the banks nothing , , fxxk em , , ended up in court , judge didn’t give a fxxk as i f ked the banks over , ( can’t get blood out of a stone ) went to China , bought sandpaper. , and cracked the fxxk on) “ 

[ZRPMs]

Just now, Darr3nG said:

I've been trying the figure this bit out... when I come to make the final payment, how do I do it?

Contact the mortgage company for a settlement total. They will send all the info via the post. In my experience it's best to go in the bank and get them to do the payment for you. You may need to make the appointment. Take almost every bit of proof of who you are, where the funds have come from. Along with the mortgage details and the settlement letter.  I joke but it felt like they wanted to see my underwear. 

[GoldDiggerDave]

BTW I bought my house this year in Weatherspoons........  Was paranoid about emails getting hacked or sending the money to the wrong account.   walked into the solicitors in the morning just to double check their bank details, bank told me to use the app as its easier?  So I sat in spoons across the road from  my solicitors and bought the house on my phone.  

I've seen loads of scams were emails have been hacked in the process and people have transferred £100,000's into to wrong account and they lose everything. 

[GoldDiggerDave]

4 minutes ago, ZRPMs said:

Contact the mortgage company for a settlement total. They will send all the info via the post. In my experience it's best to go in the bank and get them to do the payment for you. You may need to make the appointment. Take almost every bit of proof of who you are, where the funds have come from. Along with the mortgage details and the settlement letter.  I joke but it felt like they wanted to see my underwear. 

I was expecting loads of pushback paying for my house in cash, I got zero  it was bizarre I was ready to kick off had every bit of information to hand and then nothing.....It was an anticlimax 🤣

Mate you speak to these kids in the bank on their 25k per year, 60k of student debt, have zero life experience and most will never even be able to afford their own home and they sit there clicking buttons and questioning you like you are Pablo Escobar.   

 

[ZRPMs]

33 minutes ago, GoldDiggerDave said:

I was expecting loads of pushback paying for my house in cash, I got zero  it was bizarre I was ready to kick off had every bit of information to hand and then nothing.....It was an anticlimax 🤣

Mate you speak to these kids in the bank on their 25k per year, 60k of student debt, have zero life experience and most will never even be able to afford their own home and they sit there clicking buttons and questioning you like you are Pablo Escobar.   

 

It's mad. 2015 I paid off the flats with a bank transfer of what was left on the commercial loan, about £190k. Same bank as the others. Move on a few years and it's got harder. This latest one I was in the hands of the old guard. Ones that I've known for years. If it was the youngsters I recon it wouldn't have happened. 

As a chuckle for folk. A bit back I went it to my personal bank to pay my Tax. I always like to pay the tax with a cheque in the bank and get the cashier to stamp the statement. Well print on it now. Old habits die hard I suppose. Anyway. on one occasion the youngster behind the counter asked if I really wanted to pay that much. To which I replied it's my tax bill, I have to pay it. Foook me they took me aside I had a supervisor question me. Do I feel pressured in to making the payment. Of course my reply might not have helped. "Well, If I'm honest, I'm not happy about the payment. In fact it would be good if I didn't have to pay it. However, If I don't people will come round to my house and force me to make the payment or take things or my property from me." The bloody supervisor didn't know what to do. She then said due to fraud and money laundering regulations they have to ask these questions and did I really feel pressured in to making the payment. I ended the interrogation by saying. "Look, It a tax bill from HMRC. You can see this. Do I want to pay it? No. Do I have to pay it? Yes. Do I feel forced? Of course I am or I'll get prosecuted for non payment of Taxes. Will you let me make the payment to the HMRC or can you give me a written statement saying you won't allow me to make the payment so I can show the HMRC." Blank expressions then "Oh errrr, well on this occasion we'll do the payment but we have to ask these questions for your safety. Have yo tried a online bank transfer. You won't have this level of questioning with that form of payment." So the goal was more to inconvenience me in to not going in to the branch not my financial safety. Turkeys telling folk Christmas dinner is the best.

Edited September 27 by ZRPMs

[treetop1280]

6 minutes ago, ZRPMs said:

It's mad. 2015 I paid off the flats with a bank transfer of what was left on the commercial loan, about £190k. Same bank as the others. Move on a few years and it's got harder. This latest one I was in the hands of the old guard. Ones that I've known for years. If it was the youngsters I recon it wouldn't have happened. 

As a chuckle for folk. A bit back I went it to my personal bank to pay my Tax. I always like to pay the tax with a cheque in the bank and get the cashier to stamp the statement. Well print on it now. Old habits die hard I suppose. Anyway. on one occasion the youngster behind the counter asked if I really wanted to pay that much. To which I replied it's my tax bill, I have to pay it. Foook me they took me aside I had a supervisor question me. Do I feel pressured in to making the payment. Of course my reply might not have helped. "Well, If I'm honest, I'm not happy about the payment. In fact it would be good if I didn't have to pay it. However, If I don't people will come round to my house and force me to make the payment or take things or my property from me." The bloody supervisor didn't know what to do. She then said due to fraud and money laundering regulations they have to ask these questions and did I really feel pressured in to making the payment. I ended the interrogation by saying. "Look, It a tax bill from HMRC. You can see this. Do I want to pay it? No. Do I have to pay it? Yes. Do I feel forced? Of course I am or I'll get prosecuted for non payment of Taxes. Will you let me make the payment to the HMRC or can you give me a written statement saying you won't allow me to make the payment so I can show the HMRC." Blank expressions then "Oh errrr, well on this occasion we'll do the payment but we have to ask these questions for your safety. Have yo tried a online bank transfer. You won't have this level of questioning with that form of payment." So the goal was more to inconvenience me in to not going in to the branch not my financial safety. Turkeys telling folk Christmas dinner is the best.

😀😀😀, do you feel pressured on paying this amount 😀👍

[ZRPMs]

9 minutes ago, treetop1280 said:

😀😀😀, do you feel pressured on paying this amount 😀👍

I know right. Bonkers. Absolutely BAT $H!T BONKERS.  

[GoldDiggerDave]

Another one....If you are overpaying on the mortgage make sure you tell them  you want to reduce the term time, they will prompt you to reduced the monthly payment....The crooks,  as they still want you over your original term time paying that interest for the maximum time.  

I've had to fight this one a few times when I was over paying.    They are so anti people reducing the term time.  

Edited September 27 by GoldDiggerDave

[Darr3nG]

Just now, GoldDiggerDave said:

They are so anti people reducing the term time.  

That's their business model

[CaptCaveMan]

If I get a pay rise, I just up the monthly repayment.

In doing this I haven’t brought home any extra for the past few years but I view this as paying ourselves first.  

We’re still just about managing even after all the inflation busting rises over the last 2-3 years although the regular purchases of shiny stuff is being squeezed.

A couple of years ago we had 17 years remaining, on paper it’s near 15 now but hope to have it virtually cleared within 5, if I’ve exceeded my target for the stack it will be.

It’ll still be near a decade before my retirement but the good lady can become one of leisure and we’ll enjoy life a little more.

I’ll also have a few extra pennies for the hobbies incl the shiny stuff, win/win.

[Earthmetal]

Anyone here considered re-mortgaging in order to provide a sum to top up pension contributions?

[Mysstree]

1 hour ago, Earthmetal said:

Anyone here considered re-mortgaging in order to provide a sum to top up pension contributions?

State pension contributions or a private dc pension?

[Earthmetal]

27 minutes ago, Mysstree said:

State pension contributions or a private dc pension?

SIPP probably

 

[Coverte]

1 hour ago, Earthmetal said:

Anyone here considered re-mortgaging in order to provide a sum to top up pension contributions?

Personally I eventually concluded not to make any significant financial changes until the results of the budget are known next week,

too many both highly biased and speculative 'news headlines' , plus I'm not convinced they fully know themselves - another 'frightener' I just noticed :

https://www.telegraph.co.uk/money/pensions/private-pensions/nhs-doctors-threaten-quit-labour-pension-tax/

[Mysstree]

Remortgaging assumes that you currently have a mortgage and that you’re not going to be reliant on the pension to help pay off the mortgage?

Your gambling on that the investments in the sipp will outperform the interest rate on the mortgage.

Personally i would pay off the mortgage and then assuming still working pay what were the mortgage payments into a pension or other product maybe even precious metals.

To consider as well is when you plan to retire and whether pension changes will be made by government.

From experience i would say that there is not a much better feeling than having cleared a mortgage, having no significant debt and no longer paying into retirement / saving schemes but instead drawing on them.

[Mysstree]

2 minutes ago, Coverte said:

too many both highly biased and speculative 'news headlines' , plus I'm not convinced they fully know themselves - another 'frightener' I just noticed :

https://www.telegraph.co.uk/money/pensions/private-pensions/nhs-doctors-threaten-quit-labour-pension-tax/

Cannot read all of it but get the general gist.

Always wonder what all these doctors are going to do having spent many years qualifying just to throw it all away.

Like many of the so called ‘professions’ doctors seem to think because they are very skilled and highly trained and possess a pretty good intelligence level that they therefore will be good at anything. Big Mistake.

There was an article a while back i read where a financial expert said that a lot of Doctors thought they never needed financial advice because they were clever enough to figure it out themselves. Most who think this way ended up nowhere near the gains they expected and in many cases lost a lot of money.

[Coverte]

17 minutes ago, Mysstree said:

Remortgaging assumes that you currently have a mortgage and that you’re not going to be reliant on the pension to help pay off the mortgage?

Your gambling on that the investments in the sipp will outperform the interest rate on the mortgage.

Personally i would pay off the mortgage and then assuming still working pay what were the mortgage payments into a pension or other product maybe even precious metals.

To consider as well is when you plan to retire and whether pension changes will be made by government.

From experience i would say that there is not a much better feeling than having cleared a mortgage, having no significant debt and no longer paying into retirement / saving schemes but instead drawing on them.

Luckily, I don't have any mortgages, although I like to think hard work has something to do with that.

I was thinking more along the lines of BTL, land, PM's etc,etc - but concluded trying to second guess both the institutions and government was above my pay grade.

7 minutes ago, Mysstree said:

Cannot read all of it but get the general gist.

Always wonder what all these doctors are going to do having spent many years qualifying just to throw it all away.

Like many of the so called ‘professions’ doctors seem to think because they are very skilled and highly trained and possess a pretty good intelligence level that they therefore will be good at anything. Big Mistake.

There was an article a while back i read where a financial expert said that a lot of Doctors thought they never needed financial advice because they were clever enough to figure it out themselves. Most who think this way ended up nowhere near the gains they expected and in many cases lost a lot of money.

Around my way all 4 partners of my GP practice quit in the same year, I don't know what all of them did, but my own GP who also had kids at my own kids school now picks up over £1,000 for a weekend work seeing patients in the local hospital clinic, of course that's on top of his 'full protection', final salary linked golden pension scheme.

I understand the younger ones leave the country, maybe some for Australia ??

[Earthmetal]

33 minutes ago, Mysstree said:

Remortgaging assumes that you currently have a mortgage and that you’re not going to be reliant on the pension to help pay off the mortgage?

Your gambling on that the investments in the sipp will outperform the interest rate on the mortgage.

Personally i would pay off the mortgage and then assuming still working pay what were the mortgage payments into a pension or other product maybe even precious metals.

To consider as well is when you plan to retire and whether pension changes will be made by government.

From experience i would say that there is not a much better feeling than having cleared a mortgage, having no significant debt and no longer paying into retirement / saving schemes but instead drawing on them.

No, I have no mortgage. 

[Mysstree]

25 minutes ago, Earthmetal said:

No, I have no mortgage. 

So you want to take an asset you own and owe nothing on, borrow against it and have debt to buy a financial product that will hopefully outstrip the debt and payments being made (the mortgage and monthlies into the sipp).?

Probably best to find a financial advisor who can run the potential gains made from the sipp against the outgoings of the mortgage and the monthlies.

In this position i would work out what the remortgage amount was calculate the monthly payment then pay that into the sipp. Perhaps i am just over simplifying it.

[Mysstree]

50 minutes ago, Coverte said:

Luckily, I don't have any mortgages, although I like to think hard work has something to do with that.

Hard work is the case not luck.

Luck is overrated.

Amount of times i have heard people say forgot to get my lottery ticket and i would have won. There’s no guarantee that your life would have been better. You could have walked up the road to get the ticket verified at the shop and got run over and killed on the way there.

[MancunianStacker]

What if Labour or any future Govt stop tax-free cash. You’d then have a mortgage and possible no way to pay it off unless you can continue to work and may repayments up to age 70 (most lenders won’t go beyond 70 unless you want to pay higher rates). 

[Coverte]

15 minutes ago, MancunianStacker said:

What if Labour or any future Govt stop tax-free cash. You’d then have a mortgage and possible no way to pay it off unless you can continue to work and may repayments up to age 70 (most lenders won’t go beyond 70 unless you want to pay higher rates). 

Full disclosure - this is a C&P :

Chancellor Rachel Reeves has made it clear that we should not be expecting any bank account-friendly handouts in the Budget at the end of the month. 

In fact, such is the strength of her rhetoric that “petrified” savers have been pulling money out of their pensions, as well as stuffing their Isas with cash, amid fears of a tax raid.  

It has been suggested that the Government will target pensions in order to fill the £22bn budget “black hole” it claims to have inherited from the Conservatives. Other reports suggest taxes such as capital gains could rise, as Labour battles to keep its manifesto commitment not to raise taxes for “working people”. 

One rumoured change is cutting the pension tax-free lump sum. The Telegraph understands that government officials have asked one of Britain’s top pension providers to assess the impact of cutting the tax-free lump sum to £100,000, little more than a third of the current limit.

But it’s certainly not the only route Labour could go down. In total, the rumoured tax policies could increase your bill by more than £200,000, according to stockbroker Hargreaves Lansdown.

From inheritance tax changes to income tax stealth raids, Telegraph Money takes a look at the ways Labour’s Budget could increase your tax bill, and what you can do about it. This guide will cover:

Edited 3 hours ago by Coverte

[Mysstree]

16 minutes ago, MancunianStacker said:

What if Labour or any future Govt stop tax-free cash. You’d then have a mortgage and possible no way to pay it off unless you can continue to work and may repayments up to age 70 (most lenders won’t go beyond 70 unless you want to pay higher rates). 

It’s unlikely that even Labour will scrap (at least for now) the full tax free cash, more likely be a cap on the amount the most put about sum being £100,000 tax free. If that was the scenario then unless you pension pots totals were over £400,000 you’re not going to lose out. Even if over you would still get the £100,000.

The average pension pot in the uk is considerably under that so it would only affect those with larger pots.

[Earthmetal]

1 hour ago, Mysstree said:

So you want to take an asset you own and owe nothing on, borrow against it and have debt to buy a financial product that will hopefully outstrip the debt and payments being made (the mortgage and monthlies into the sipp).?

Probably best to find a financial advisor who can run the potential gains made from the sipp against the outgoings of the mortgage and the monthlies.

In this position i would work out what the remortgage amount was calculate the monthly payment then pay that into the sipp. Perhaps i am just over simplifying it.

Well, not "want", it's an idea.
The problem with paying monthly is time isn't on my side, I don't want to be working many more years. This way I could gain the tax advantage instantly, pay the mortgage off from the pension pot.