To ask about mortgages?

[BFwoes]

Not quite sure how to frame this. We bought in October of 2023, with an interest rate of 4.54%. Our mortgage payment is £2,700 on a £625k house, and we overpay by £600, every month.

Whenever I read posts/comments on here, everyone seems to have a much lower mortgage than us. Did you all buy ages ago, when interest rates were much lower? Do you all have much more inexpensive houses? Or have we missed a trick, somewhere?

Ahhh, 10 years at 1.9% though, that's also amazing! I wish I even had known that 10 years was an option 😆

I'm hoping to pay it all off at the end of the 5 years. If not, then pay as much off as possible in one fell swoop and then overpay asap. Depending on rates I may keep it on a variable rate. Ask me again in two years 😉

Young adult DS bought in June 2023 & got a rate of 4.3%, fixed, 2 yrs.
His total monthly take home pay after tax is less than your basic amount of mortgage.

5.6% 5 year fixed on a 400k mortgage = 2300 a month for us. Absolutely max-ing out for us but we love our house and hopeful that rates will be down in 5 years.

I would imagine that your mortgage is up there with the top % of repayments compared to others but clearly so is your income, so I guess that's all good.

Considering that the majority of the UK population don't live in London - then yes, I'd imagine 'most' people have to pay far less than you have for an equivalent house.

I don't live in London. Here, £400 - £450k will comfortably get you a large 4 bed with decent gardens in a very 'naice' area, 2 minutes from the coast, 10 minutes from a major City and an hour from the Capital, plus in catchment for an excellent school.

I think you must also have a high LTV as we have a 2.79% mortgage rate, took out our mortgage 12 months ago but our payments are approx £1300 a month as we only borrowed £295,00. Our focus is to try and overpay as much as we can so that we can absorb any interest rate increase that we encounter when our fixed rate is up.

Where do you live?! Asking for a friend*!

*The friend is me. I’m the friend.

You must have a low deposit then.

I bought over 1eyrs ago interest rate was 3.69% but got it down to 1.69% fixed for 5 yrs so due to rmend 2025.

However my amount was only £185k mortgage on a house worth £280k as I had a big deposit to put down.

I'm not too worried abou what rate I'll get wheb my deal ends becuase it'll be close to what I first started on and the difference will only be £150 ish since I've paid quite a bit off.

15%, so similar amount to you, but much lower percentage. Sounds like you’re sorted! 🙂

Mortgage rates shot up due to the Liz Truss fiasco. 12 months ago was a different world.

I live in the NW so cheaper housing
Paid 127k for a 2 bed apartment in 2007
My mortgage is £385pm

Another idiot who fixed at 1.29% for 2 years in 2021 and is now on 4.5%. We’d overpaid a lot and that’s offset most of the repayment hike so we’re only repaying another £60 a month, and we can move to a new rate next summer.

£1450 a month on a 3 bed Victorian terrace in an ok’ish bit of SE London. Less than £110k to pay off now. We have a fairly short term, hence high-ish repayment. It’s all relative though.

Truss was September 2022, you'd have been doing very well indeed to get a rate less than 3% (or 5%!) 12 months ago

And OP, nobody's 'terminally offended'. You listed the potential reasons in your OP - cheaper houses or lower interest rates. What else do you want from this thread?

In some places houses cost less than £100k

My broker said the 5 year fix was definitely a good move in 2021 - we fixed at 1.18% and I feel so lucky.

We’d done 3 years previously but he said it was so low for 5 we’d be mad not to so by dumb luck I don’t have to worry until Aug 2026

My house is worth more than yours, but our mortgage payments are much lower (£1k pcm less) because (i) we bought 6 years ago and prices have gone up; (ii) we put down £200k from a previous property plus savings; and (iii) we took a 10 year fix when rates were still low so our interest rate is much lower than anything available now. We are overpaying in hopes of reducing the balance significantly during the 10 year term.

The ‘terminally offended’ comment was to/about the people complaining about the thread/my salary/goodness knows what. Most of the responses have been interesting, and I’m getting exactly what I wanted from the thread.

I am very jealous!

Things change though OP - presumably this is your first house purchase, if you only put down 10% - as time goes on, prices will rise and you will end up one of those people with a £1m+ house and hardly any/no mortgage! You will get a better mortgage rate once you have built up some equity in your house.