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Thread: Financial advice

  1. #1
    keyser_soze's Avatar Poster
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    Just thought I'd pop this in here u never know your luck, I'm not a financial animal so I just pay bills with out looking too far into it but my mortgage finished its capped period this year after 5 years paying it and went up quite considerably so I asked for a new deal which they sent me out which was back to what I was paying originally, then out of curiosity while reading through the offer my mortgage, buildings and contents and life insurance are all in on the price meaning I pay interest on my insurance at the same rate as my mortgage so I was wondering wether its worth while shopping round for insurance and keeping my mortgage payments on there own? most companies charge interest if you pay monthly for your insurance anyway but surely thats cheaper than paying it with my mortgage?
    Anyway any1 with a bit financial knowledge advise?
    BTW this is a U.K mortgage I suppose its totally different in other countries.

  2. The Drawing Room   -   #2
    Virtualbody1234's Avatar Forum Star BT Rep: +2
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    What mortgage rate are you paying?

    Only if the insurance interest rate is lower than the mortgage rate, will you benefit.

  3. The Drawing Room   -   #3
    j2k4's Avatar en(un)lightened
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    Quote Originally Posted by Virtualbody1234
    What mortgage rate are you paying?

    Only if the insurance interest rate is lower than the mortgage rate, will you benefit.
    Exactly, but by all means you should shop it anyway, as the normal course of events.

    Occasionally a surprise presents.
    “Think about how stupid the average person is, and then realize that half of 'em are stupider than that.” -George Carlin

  4. The Drawing Room   -   #4
    keyser_soze's Avatar Poster
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    Cheers for that I think my motgage rate is 6% I don't know how that equates to interest rates monthly, from what I can make out the mortgage works out the interest in december over what I owe which includes my insurance where as most insurance companies have monthly interest charges.

  5. The Drawing Room   -   #5
    Rat Faced's Avatar Broken
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    6%...and thats a deal?

    WTF?

    My standard variable is only 5.7% and its offset, so i never actually pay that much on the whole amount.



    As to insurance, shop around.

    The mortgage companies are selling the insurance on behalf of others and in 9 times out of 10 you can get it a lot cheaper...

    Cheapest Home Insurance i found was with Liverpool Victoria, however as it goes on postcodes etc, you may find another company cheaper for you.

    Def worth a look though...

    As to the interest rates, forget em.. I went from £35 per month with the Mortgage company to £17 per month by going directly with the Insurance Company once. That means the mortgage company had more than doubled the premium... the extra interest on a much smaller premium is a big saving, not a cost.
    Last edited by Rat Faced; 09-14-2005 at 09:05 PM.

    An It Harm None, Do What You Will

  6. The Drawing Room   -   #6
    keyser_soze's Avatar Poster
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    Much appreciated things seem a lot clearer now 2morrow I can pretend to my missus that I just know these things
    Last edited by keyser_soze; 09-14-2005 at 10:45 PM.

  7. The Drawing Room   -   #7
    Barbarossa's Avatar mostly harmless
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    ALWAYS shop around for insurance, and it's hardly ever worth renewing a policy (Especially on car insurance..)

  8. The Drawing Room   -   #8
    Spider_dude's Avatar cawk BT Rep: +4
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    we have a mortgage with the halifax bank of spain as well as the halifax bank of scotland, and pay 2% in spain and about 5 odds with scotland, except scotland is offset with saving account.

  9. The Drawing Room   -   #9
    Rat Faced's Avatar Broken
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    If you want to gamble on exchange rates you can get a foreign currency mortgage in the UK.

    ie: Borrow in US Dollars and pay US Interest Rates, borrow in Euros and pay EU Interest Rates interest rates.... etc.

    You can save a fortune doing that.... you can also lose your shirt

    An It Harm None, Do What You Will

  10. The Drawing Room   -   #10
    Spider_dude's Avatar cawk BT Rep: +4
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    our mortgage is in spain cos the house is in spain.

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