settlement
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What you say is true. Yet we still have the highest mortgage rates in Europe
What you say is true. Yet we still have the highest mortgage rates in EuropeThat’s not what was said though.
Fixed rates are lower than variable rates.
The poster should find a 1.95% rate which allows up to a 10% lump sum overpayment.
Some of these products are fantastic; 1.95% fixed on, say, a €500k mortgage and you can lob up to €50k against it and 10% per year thereafter if you’re lucky enough to be able to do so.
What more could a borrower ask for?
Yep that's what I meantHi Settlement
That is not quite it.
I would expect that over the long-term a diversified investment in equities will produce a positive return. So it is more likely that there will be a positive return than a negative return.
However, the positive return has to exceed the mortgage interest rate. And it must be the return after tax and charges. That may well still happen.
However, the risk is just not worth it.
It is one of the first principles of investing - don't borrow to invest in shares.
Brendan
What did I miss?That’s not what was said though.
fixed rates are much lower than variable rates.
Only borrowing at Dutch rates of 1.4% over ten years would qualify as "fantastic" for me. Same currency, very different market.Some of these products are fantastic; 1.95% fixed on, say, a €500k mortgage
Fixed rates ARE much lower than variable rates.What did I miss?
Certain fixed rates are higher than certain variable ones right now. This wasn't the case IIRC a few years ago.
Only borrowing at Dutch rates of 1.4% over ten years would qualify as "fantastic" for me. Same currency, very different market.
Well, i disagree completely. Over the last 100 years or more there have been many health epidemics and ups and downs with inflation stock markets , etc. and with regard to investing and inflation i always remember an old saying which seems to hold true ="If we look back at the past we can see glimmers of the future"[my two pennies worth and with deepest respect for every ones opinion.] I dont think we should use Covid as a scapegoat but instead lets look at this over a 40 year term as for e. g. a 40 year morgage term.My tuppence is that people would be mad to plan based on the post-Covid levels of inflation and house price growth we’re seeing.
Apologies. I was mixing up convertible term (giving the option of extending the erstwhile mortgage cover into general life insurance - without certain checks such as a medical) with continuing mortgage protection life insurance for the remaining term even after the mortgage was cleared. My mistake.That is not correct. The life cover is separate from the mortgage.
I believe it's actually the third highest in the Eurozone (not Europe or EU), after Greece and Malta.What you say is true. Yet we still have the highest mortgage rates in Europe
ICS gives 1.95% fixed rate for 3 years, and allows 20% overpayment of full mortgage amount each 12 months - so on this €500K mortgage, €100K could be paid off each 12 months, without incurring penalties.That’s not what was said though.
Fixed rates are lower than variable rates.
The poster should find a 1.95% rate which allows up to a 10% lump sum overpayment.
Some of these products are fantastic; 1.95% fixed on, say, a €500k mortgage and you can lob up to €50k against it and 10% per year thereafter if you’re lucky enough to be able to do so.
What more could a borrower ask for?
The ICS product seems excellent.ICS gives 1.95% fixed rate for 3 years, and allows 20% overpayment of full mortgage amount each 12 months - so on this €500K mortgage, €100K could be paid off each 12 months, without incurring penalties.