# What would you do?????



## .Martin (May 2, 2007)

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## Needs a clean (May 24, 2008)

I hate paying my mortgage and would love to be mortgage free so an outright buy would be the option for me.


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## CupraRcleanR (Sep 2, 2007)

You'll get poor interest at the mo. You could buy the house outright and maybe save up the money you would have spent on the mortgage in an Investment ISA. You can save £600 per month tax free each. That way you'll have money put aside for maybe a bigger house in the future or a holiday home or retirement plans etc.

Just an idea.


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## Bero (Mar 9, 2008)

It will work out better paying off the house with the money.

The interest for the mortgage will be a good bit greater than the PO interest rate (this rate will effectivly be further reduced as you will have to pay income tax on the interest!).

If you want to have a block of money in 20 years you can pay off the house in cash then pay the equivalent of mortgauge payments into a savings account, at the end of the term you will be better off than if you put it all in a savings account and used the interest to pay it off.


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## swordjo (Sep 17, 2006)

I agree with the CupraRClean, buy the house outright at the moment when prices are low and hopefully by the time you come to sell it this country will have sorted itself out. You should make a tidy profit on it, even more so due to the fact you have not being paying any interest.


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## Kingy (Feb 14, 2009)

Imho - Buy a house. It will appreciate in value and a mortgage free life is a thing of dreams and /or hard work for most. With the chance to have it at your age I'd take it. 
Plus - If you put it into any kind of savings plan and your circumstances or plans change you may be tempted to dip into it. 

Nice situation to be pondering on. Good luck. :thumb:


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## Crockers (Mar 30, 2008)

Depends totally on your attitude to risk......


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## .Martin (May 2, 2007)

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## wookey (Jul 13, 2007)

speak to a financial advisor

seriously buy more than one house - perfect time to buy your own home and a least one buy to let


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## .Martin (May 2, 2007)

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## sxid (Jan 19, 2008)

If its that much money that your potentially receiving it was probably quite a bad accident and must have resulted in injury to yourself, also bare in mind that you may not be able to work until 65. Personally, i wouldent run out as soon as you get the money and buy a house outright, i would put it in a high interest savings account for a while (not too long) and see what happens to house prices, I predict they are and will fall for the next few years at least - they have to. however, the best rate of interest your likely to see is betwee 2.0% - 3.0%, inflation is currently 3.0% so you arn't going to 'make' any money on your money. You could use say 60%-70% of the settlement on a house and put the rest in a higher interest account, earning more like 5 or 6 % as it would have to be locked away for 6 years or so. however the interest is very low on savings and in 2 years your money might be locked away at a lower interest rate than what you could be earning.

the best advice i could give is to invest a small amount in a financial adviser, and talk to a decent bank manager, as only they can advise you 'properley'.

rememeber though bank managers are almost always biast! Mine recently advised me to part with over 60k and invest it to some 'scheme' that is based on the FTSE 100 and the NIKKAI, i promptly told them where to go! haha.


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## -ROM- (Feb 23, 2007)

I'd mortgage, that way you and your partner/wife can have a policy that pays off the mortgage if either of you die.

I know that sounds a bit grim, but look at it this way if you buy the house and one of you die then all the other person will have is the house. If you mortgage it and have the cover and one of you dies the other will have both the savings and the house.


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## CupraRcleanR (Sep 2, 2007)

rmorgan84 said:


> I'd mortgage, that way you and your partner/wife can have a policy that pays off the mortgage if either of you die.
> 
> I know that sounds a bit grim, but look at it this way if you buy the house and one of you die then all the other person will have is the house. If you mortgage it and have the cover and one of you dies the other will have both the savings and the house.


He could have life cover anyway. Would be peanuts for 100K if they are both early 20's. Less than £10 per month each for sure.


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## -ROM- (Feb 23, 2007)

CupraRcleanR said:


> He could have life cover anyway. Would be peanuts for 100K if they are both early 20's. Less than £10 per month each for sure.


But he could have life assurance in addition to mortgage protection. So all in all the remaining person would be even better, off, not arguing, just a thought as this is the reason why my parents won't pay their mortgage off (15 years remaining) despite having more than enough in savings to do so.


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## CupraRcleanR (Sep 2, 2007)

rmorgan84 said:


> But he could have life assurance in addition to mortgage protection. So all in all the remaining person would be even better, off, not arguing, just a thought as this is the reason why my parents won't pay their mortgage off (15 years remaining) despite having more than enough in savings to do so.


Yes, and also the cash is available to your parents if they need it rather than it being tied up in the bricks and mortar and therefore not easily accessable.:thumb: Also with your parents being 50/60 ish Life cover for them now would be v expensive if available at all.

Another option is one of these "one" accounts where you can "offset" against your savings without having to give up access to your funds.

101 different permatations really.


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## .Martin (May 2, 2007)

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## CupraRcleanR (Sep 2, 2007)

I hate those parking dings!


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## -ROM- (Feb 23, 2007)

.Martin said:


> Jesus I hope I'm not dead at 47!!! :lol:
> 
> It was a pretty bad accident
> 
> ...


May i be the first to say...

bit of T-Cut and it'll be good as new!


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## shabba (Sep 28, 2008)

I'd go for the house immediately, prices are low everywhere...IMO, better be mortage free your entire live (or eventually resell the house in a few years when your really really old (like after the finance crisis  than having to pay every month plus the intrests...even if they're low now..


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## sxid (Jan 19, 2008)

house prices WILL fall further.


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## DUBLIN HITMAN (Feb 13, 2009)

lucky man to be alive , just go with your gut feeling mate , 
if it was me i'd buy straight out.


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## Judas (Jul 3, 2008)

what about early redemption fees though - do you have any?


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## Judas (Jul 3, 2008)

.Martin said:


> Jesus I hope I'm not dead at 47!!! :lol:
> 
> It was a pretty bad accident
> 
> ...


a bit of PDR would sort that out toute sweet....


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## .Martin (May 2, 2007)

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## Judas (Jul 3, 2008)

.Martin said:


> Cheers guys! It's most likely gonna be that I'm gonna buy!
> 
> You've lost me???


http://www.fancyamortgage.co.uk/MortgageFees/EarlyRedemption.asp

Early Redemption Fees

A charge made by the mortgage lender if the borrower terminates a mortgage in advance of the terms of that particular mortgage. ERCs are generally imposed on fixed or discounted mortgages offering a relatively cheap deal for an initial period. They usually run only until the end of the initial cheap deal period, though some mortgages impose extended redemption penalties which continue even though the borrower has moved back onto the lender's standard variable rate.

there you go m8 - worth checking.


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## greenwagon (Dec 31, 2008)

My advice is (from a man that has made a few bob ove the years )

buy a house and pay in cash for it 

no morgage is what you should all aim for in life 

leave it in the bank you will get no decent %interest for the next few years and are more likely to fritter it away on cars ,holliday,women ,booze and whats left you will just blow it 

morgage and financial advisors are just after your money so dont let them 

a good house with a decent garage space so you can tinker about when you get older ,A bungalow is better as you have no stairs to worry about and put half of the house in your mothers name too as you never know with women nowadays :lol:


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## Mat430uk (Sep 17, 2007)

or if you can get a mortuage on your Personal house using some of the money as a deposit.
and
buy a cheap buy to let and try and balance it so you get a little bit of income from the buy to let ?


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