Charlie Endell Posted December 8, 2014 Share Posted December 8, 2014 I'd actually be better paying off my mortgage than having cash in a cash ISA (it would still leave a tidy 'rainy day' sum left over), but for some bizarre comfort-blanket reason I can't bring myself to do it. Quote Link to comment Share on other sites More sharing options...
giblet Posted December 8, 2014 Share Posted December 8, 2014 Seen arguments for and against piling in savings to bring your mortgage term down. Prefer to do it just now as the sooner I have it away, it will feel like a great achievement. Quote Link to comment Share on other sites More sharing options...
teecee- Posted December 8, 2014 Share Posted December 8, 2014 Being looking for a savings plan, then Bingo. As a part time employee of Tesco I have been offered a 3 year share save scheme. Offer price is £1.50 and contributions can be to a maximum of £500 per month. Share price at roughly £ 1.85 now- win- win situation that I will be contributing substantially to. Quote Link to comment Share on other sites More sharing options...
Charlie Endell Posted December 8, 2014 Share Posted December 8, 2014 Being looking for a savings plan, then Bingo. As a part time employee of Tesco I have been offered a 3 year share save scheme. Offer price is £1.50 and contributions can be to a maximum of £500 per month. Share price at roughly £ 1.85 now- win- win situation that I will be contributing substantially to. I've been investing in my company shareplan for over ten years, and it has pretty much always been a winner. A hassle-free investment as well - no third parties to deal with. Quote Link to comment Share on other sites More sharing options...
teecee- Posted December 8, 2014 Share Posted December 8, 2014 Worst case scenario- cash back in full. Just have to delay my retirement and do the 3 years. Quote Link to comment Share on other sites More sharing options...
Flure Posted December 8, 2014 Share Posted December 8, 2014 Worst case scenario- cash back in full. Just have to delay my retirement and do the 3 years. Do you get a bonus payment for completing the three years or do you get an interest payment on your money if you pull out before term? Quote Link to comment Share on other sites More sharing options...
teecee- Posted December 8, 2014 Share Posted December 8, 2014 Must do 3 years or just cash back. If the share price for example was £3 then I would double my cash. Whatever share price at maturity reflects return Quote Link to comment Share on other sites More sharing options...
teecee- Posted December 8, 2014 Share Posted December 8, 2014 Example= save £200 per month over 3 years= £7200 invested at £1,50 per share. If share is at £3 after 3 years then return is twice savings £14,400. Is share collapses [ again] then money back. Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 8, 2014 Share Posted December 8, 2014 Santander pays 3% on balances up to £20k in its current account. If your partner of even yourself is a non tax payer then that is worth looking at in terms of setting it up. Do you not have to pay a monthly fee on that account? Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 8, 2014 Share Posted December 8, 2014 Example= save £200 per month over 3 years= £7200 invested at £1,50 per share. If share is at £3 after 3 years then return is twice savings £14,400. Is share collapses [ again] then money back. These schemes usually have some sort of interest/bonus if you take money option at the end of it. Maybe you work for a company of tight erses though? Quote Link to comment Share on other sites More sharing options...
teecee- Posted December 8, 2014 Share Posted December 8, 2014 Only concession is price that we are getting the share at. £1.50 as opposed to about £1.85 at present. Quote Link to comment Share on other sites More sharing options...
Flure Posted December 8, 2014 Share Posted December 8, 2014 Only concession is price that we are getting the share at. £1.50 as opposed to about £1.85 at present. I don't doubt this. But check again. There usually is a percentage of interest of you take your money back. Quote Link to comment Share on other sites More sharing options...
Ex-Whitfield Posted December 8, 2014 Share Posted December 8, 2014 First mortgage in 1991 was a fixed rate of 12.99% It was a good deal. Quote Link to comment Share on other sites More sharing options...
Armchair Bob Posted December 8, 2014 Share Posted December 8, 2014 Worst case scenario- cash back in full. Just have to delay my retirement and do the 3 years. Worst case scenario for employee share plans is your company goes bust. You lose your job *and* your investments... Quote Link to comment Share on other sites More sharing options...
one t in scotland Posted December 8, 2014 Share Posted December 8, 2014 Do you not have to pay a monthly fee on that account?£2. Which should be covered by the cashback you get on Council Tax / Utility bills. Quote Link to comment Share on other sites More sharing options...
hampden_loon2878 Posted December 8, 2014 Share Posted December 8, 2014 Low interest rates are here for the foreseeable future, i cant see it going above 3% in the nextten years, the economy simply cant handle it Quote Link to comment Share on other sites More sharing options...
EddardStark Posted December 8, 2014 Author Share Posted December 8, 2014 Decent article here from Stephanie Flanders http://www.thisismoney.co.uk/money/news/article-2864571/STEPHANIE-FLANDERS-rate-inflation-bombshells-Osborne-s-plans-ahead-year-s-election.html Quote Link to comment Share on other sites More sharing options...
AberdeenAngus Posted December 8, 2014 Share Posted December 8, 2014 First mortgage in 1991 was a fixed rate of 12.99% It was a good deal. 1991 was my first mortgage too. Can't remember the rate but it was high. Payments halved within 2 years. More recently was on a fixed which reverted to Base Rate plus 0.75% - missed out when the rates fell initially but now in a great position. Endowment due out in about 15 months - will need to see if I use it to bring down amount owed to a relatively minor amount or look to invest it. That will depend on how much the Bank allow me to repay without penalty or altering the interest rate. Either way plan to be mortgage free with 5 years when wife's endowment matures. Moved to the repayment when it became obvious endowments would leave us sort. Quote Link to comment Share on other sites More sharing options...
Charlie Endell Posted December 8, 2014 Share Posted December 8, 2014 I've still got the endowment from my first flat running - it's actually on track to pay the original sum - I just view it as a wee savings plan. Quote Link to comment Share on other sites More sharing options...
EddardStark Posted December 8, 2014 Author Share Posted December 8, 2014 changed from endowment to repayment about 15 years ago and cleared my mortgage. The policy eventually came in 4k less than the mortgage value. Quote Link to comment Share on other sites More sharing options...
AberdeenAngus Posted December 8, 2014 Share Posted December 8, 2014 Going by the letters I've been getting from Aviva I'll be lucky to get 67% of the target amount and to think it sold to me on the basis that I'd have a decent sum left over after clearing the mortgage. Question - when interest rates change do the banks calculate the new monthly payment on the outstanding amount at the time of the change or is it on the original amount borrowed? Quote Link to comment Share on other sites More sharing options...
Lamia Posted December 8, 2014 Share Posted December 8, 2014 To be honest, I don't have an awful lot of sympathy for folk who find it difficult to cope with increasing interest rates. Interest rates have been at a record low for the best part of a decade now. Folk taking out loans and mortgages should have factored in a rate rise to their calculations before getting into debt. Having said that it is still far too easy for folk who can't afford it to get credit so the banks have to take a lot of the blame as well. They really should know better by now. The answer is fairly simple. if you are worried about interest rates don't borrow money. They have been taking out these high mortgages because the cost of housing has increased with no cheaper alternatives and without taking high mortgages they wouldn't be able to get housing. Quote Link to comment Share on other sites More sharing options...
Toepoke Posted December 8, 2014 Share Posted December 8, 2014 changed from endowment to repayment about 15 years ago and cleared my mortgage. The policy eventually came in 4k less than the mortgage value. I think mine's going to be about 10k short. Of a 40k target! Quote Link to comment Share on other sites More sharing options...
Charlie Endell Posted December 8, 2014 Share Posted December 8, 2014 I'm pondering wherever to cash mine in - it's on target (£32,000) but still another eight years to run (£60 per month). Out of curiosity I might give Zurich a bell to see what its surrender value is. Quote Link to comment Share on other sites More sharing options...
AberdeenAngus Posted December 8, 2014 Share Posted December 8, 2014 I'm pondering wherever to cash mine in - it's on target (£32,000) but still another eight years to run (£60 per month). Out of curiosity I might give Zurich a bell to see what its surrender value is. I get a surrender value on my yearly statement. Not worth it for me with less than 18 months to go. Aviva to top up amount by up to £3200 - no idea how they work it out. I'm also hoping there is a hefty final bonus added to take me closer to my target amount. My target is just less than yours and I pay £40 a month - would appear that Zurich are getting much better returns than Aviva. Quote Link to comment Share on other sites More sharing options...
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