Pay day loan competition

[Dark Knight]

Smurfy
can only comment on the deal I have just started which is way ,way below "2.00 per pond borrowed, it is in fact less than £1.60 per pound borrowed ,which makes a massive difference to the amount you pay back, on a 100 or 200 thousand mortgage

whilst discussing this with the financial advisor that sorted our mortgage out, he did show us an average for 10/15 and 20 year rates, interestingly the highest forecasted figure he had going forward was 9%
which would give some credence to Ken's figures at sometime in the future but hopefully not for a long time to come

[Manoverboard]

sorry Ken
you wrong it is nowhere near £2.00 per pound, as I have just got a new mortgage and I know the figure and your figures are no where near being right
a bit like the headline interest rates of loan sharks, legal or not

Mortgage rates have varied considerably over the years specified, 2.5% to 16%, as have the schemes utilised to support them to pay off the capital debt ... a generalistion from Darknighty is ok it seems but from others it is not ?

Actually you are both wrong but you both used examples to suit debating points rather than as a fact set in tablets of stone ... or so I believe.

[Dark Knight]

Moby
mine is fact ,as it is my mortgage or do you know better?
didn't know you arranged my mortgage or I would have tried for a better deal

and you believe wrong.....sorry fella but my repayment is nowhere close to the over £2.00 per pound Ken used as his historic example

[Kendhni]

DK - you are probably right based on the current low levels of mortgage interest rates but taking the average mortgage rate of the last 25 years, which is in the region of 6%, (possibly slightly higher), then I think that Ken's figures are not that far out - you will end up paying roughly double the amount borrowed.

And I would not like to think what it would be if we went back to the bad old days when mortgage interest rates were up at 15%

Correct david, I was careful to explain that in my original post ... the average rate over the last 25 years has been in the region of 5-6% which means a standard 25 year mortgage on a £100K property would cost about £193K (excluding overheads) using an interest rate of 6%.

If anybody wants to do a rough check what the numbers are you can do a very quick check here.

I ran 15% through and it works out at about 4X the original cost on a 25 year mortgage. :EEK: You would pay back about £385K for a 25 year £100K mortgage.

[Kendhni]

Just ran my own current deal through ... it works out at about £1.30 per £1 borrowed over 25 years ... but as interest rates rise so will that

Pity about the 15% I was on when I first had a mortgage ... to be honest the mortgage rate is of no consequence to me any more since my monthly repayment is less than the price of a pizza (the only reason I don't pay it off is to keep the line of credit open to me ... and I don't have to pay to store deeds etc.).

[Silver_Shiney]

Just ran my own current deal through ... it works out at about £1.30 per £1 borrowed ... pity about £15% I was on when I first had a mortgage ... but the mortgage rate is of little consequence ot me any more since my monthly repayment is less than the price of a pizza (the only reason I don't pay it off is to keep that line of credit open to me ... and I don't have to pay to store deeds etc.).

Ken, I understand that deeds are now held centrally and are not returned to you once the mortgage is repaid.

[david63]

Ken - you do not have to pay to store deeds anyway - if you have them with your solicitor (well that is the case with us)

[Silver_Shiney]

I've just fired up a spreadsheet template prepared by Mr Gates' finest.

A mortgage of £150,000 over 25 years would result in total interest of:

£92,524.04 @ 4.2% APR
£51,877.53 @ 2.5% APR

[Dark Knight]

perhaps it is easy for me to be blasé about interest rates, as I have never seen the high rates you oldies talk about?
luckily for my generation we didn't see the bad old days of strikes, high interest rates and blackouts etc
and have reaped the benefits of much lower interest rates, whilst watching house prices drop relative to earnings

As I stated I can only relate my experience to what I have seen ,as I am not old enough to go back 25-30-35 years to look for figures that aren't relevant in this day and age

[Manoverboard]

Moby
mine is fact ,as it is my mortgage or do you know better?
didn't know you arranged my mortgage or I would have tried for a better deal

and you believe wrong.....sorry fella but my repayment is nowhere close to the over £2.00 per pound Ken used as his historic example

Content edited

Yours is one example, Ken's is another and mine was the third way where I repaid less than I borrowed.

In any event they were all different and no size fits all .... whoever suggests it.

The truth will only emerge after a mortgage has been paid off after the full term.

[Kendhni]

Ken - you do not have to pay to store deeds anyway - if you have them with your solicitor (well that is the case with us)

At the minute my mortgage company holds on to them without any cost to me (although it is probably built into the rate I currently pay.
Although the deeds to one of our rental properties are held by a solicitor (they have not yet made any charge us for this service .. and I ain't rocking any boats by mentioning it).

[Boris+]

Hi Alan,

I'm a bit out of touch - but I don't think that a mortgage company or b/soc or bank has a right to keep the deeds once a mortgage has been paid off.

Yes, I do understand that the Land Registry has a 'central record' of all 'titles' (deed numbers), but when you pay off a mortgage I thought you then got a copy of the deeds. I know when we bought our properties the solicitors sent us the deeds - and we have copies in our safe and duplicates with the solicitors, just to be on the safe side.

Em

[david63]

Em - the way I understand it, and things may have changed, is that if you have a mortgage then the mortgage provider retains the deeds as security for the loan.

If you pay off your mortgage then if the mortgage provider retains the deeds, which they like to do under the guise of doing you a "service", then you have to pay - in fact you effectively still have a mortgage.



An amusing story about deeds (well it is now).

I don't know if any of you remember the fire several years ago at a Pickfords secure depositary well the deeds for our house were there (in ashes). The building society obviously had to recreate them at their expense. It was at this time we realised that the BS was charging something like £100 a year basically to "look after" the deeds (which they didn't) so it was decided that we would have them and let the solicitor look after them.

The upshot is that when contacting the BS we were told that there would be an administration fee to get the deeds back from the depositary - these being the deeds that they had burnt. It seemed to make no difference when it was pointed out that they were not there - still had to pay.

[GillD46]

We don't have the deeds to our home, nor did we have them to our previous home, they are just held on-line these days. We do however, have a copy, which our solicitor holds absolutely free of charge.

[Boris+]

Hi David,

Yes, as you say - you can laugh now, but it probably wasn't amusing at the time. I think it is disgraceful that they didn't 'look after' your deeds, and then had the cheek to charge you!

All ours are safely (together with spare keys) where I can put my sticky mitts on them very quickly if I want to - haven't bothered with them for a little while, so I hope the moths haven't got in!

Em

[Meg 50]

Just ran my own current deal through ... it works out at about £1.30 per £1 borrowed ... pity about £15% I was on when I first had a mortgage ... but the mortgage rate is of little consequence ot me any more since my monthly repayment is less than the price of a pizza (the only reason I don't pay it off is to keep that line of credit open to me ... and I don't have to pay to store deeds etc.).

Ken, I understand that deeds are now held centrally and are not returned to you once the mortgage is repaid.

when did that come in? we paid off our mortgage about 9 or 10 years ago and the deeds were delivered to us and now repose in our deed box.

Turned out to be useful cos when a neighbour moved he could photo copy our copy of the rights of way between our houses

[Meg 50]

Em - the way I understand it, and things may have changed, is that if you have a mortgage then the mortgage provider retains the deeds as security for the loan.

If you pay off your mortgage then if the mortgage provider retains the deeds, which they like to do under the guise of doing you a "service", then you have to pay - in fact you effectively still have a mortgage.



An amusing story about deeds (well it is now).

I don't know if any of you remember the fire several years ago at a Pickfords secure depositary well the deeds for our house were there (in ashes). The building society obviously had to recreate them at their expense. It was at this time we realised that the BS was charging something like £100 a year basically to "look after" the deeds (which they didn't) so it was decided that we would have them and let the solicitor look after them.

The upshot is that when contacting the BS we were told that there would be an administration fee to get the deeds back from the depositary - these being the deeds that they had burnt. It seemed to make no difference when it was pointed out that they were not there - still had to pay.

The bank 'looked after' my parents' deeds and then lost them....
They (Nat west) paid for the re registration at the land registry

[Ray Scully]

What 's all this mortgage stuff got to do with Justin Welby.
Get back on topic.

[Dark Knight]

Payday loans should be banned and a capped interest rate introduced for any lender that is linked to the base rate from the Bank of England


is that okay

[Boris+]

Sounds like a plan, DK.

However, it would be great if we could just get people to avoid needing these loans.

Em

[Silver_Shiney]

Hi Alan,

I'm a bit out of touch - but I don't think that a mortgage company or b/soc or bank has a right to keep the deeds once a mortgage has been paid off.

Yes, I do understand that the Land Registry has a 'central record' of all 'titles' (deed numbers), but when you pay off a mortgage I thought you then got a copy of the deeds. I know when we bought our properties the solicitors sent us the deeds - and we have copies in our safe and duplicates with the solicitors, just to be on the safe side.

Em

Hi Em

I saw something a few weeks ago (can't remember where) that said that lenders no longer return deeds to the owner when the mortgage is repaid. It's all, apparently, held in a central registry. I'm find out for certain in January 2016

[Silver_Shiney]

What 's all this mortgage stuff got to do with Justin Welby.
Get back on topic.

I think we digressed just a tiny little bit when the topic of interest rates was introduced......

[Silver_Shiney]

when did that come in? we paid off our mortgage about 9 or 10 years ago and the deeds were delivered to us and now repose in our deed box.

Turned out to be useful cos when a neighbour moved he could photo copy our copy of the rights of way between our houses

I believe it is a fairly recent thing, Meg

[Silver_Shiney]

Trying to find out the facts about this deeds business. The Santander website says "Every property has a document or set of documents called -Title Deeds'. They show who owns the property. Ownership is now also shown electronically at the Land Registry." So maybe you still get provided with the deeds on final repayment?

[Gill W]

Re title deeds.

They are no longer the important documents they once were, as everything is now held on computer.

You don't need your deeds to confirm your ownership of the property, and as such, you don't have to pay any one, or ask anyone to hold them securely.

When I left the Halifax 4 years ago, when people repaid their mortgages, they had the choice of having the deeds sent to them, or if the deeds weren't wanted, they were disposed of.

I personally think it's a shame for them to be destroyed, as they are historical documents.

When I repaid my mortgage, I had the deeds sent to me, and they live upstairs with my other documents and certificates.