Neg Covenant
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- 107
Circs as follows:
Agreed with another to buy house at end of 2004. Each own 50%.
Bought on foot of a bidding war so probably paid above mkt rate.
Completed transaction in 2005.
25yr mge.
Tracker - ECB + 0.85%
LTV - 77%
Now in 2010 the capital outstanding on the mortgage has been reduced to 66% of 2005 purchase price. However it would equate to 89% of sale price of a nearby house.
Mortage repayments are being applied as follows:
Portion going towards capital: 67%
Portion going towards interest: 24%
Portion going towards life policy: 2%
Portion rebated on foot of Tax relief: 6%
Should I sell or should I go now?
Will lose tracker, will lose TRS, will pay a lot of interest on start of next mortgage.
At the same time, I do not intend living in the house for more than another 2 years.
Agreed with another to buy house at end of 2004. Each own 50%.
Bought on foot of a bidding war so probably paid above mkt rate.
Completed transaction in 2005.
25yr mge.
Tracker - ECB + 0.85%
LTV - 77%
Now in 2010 the capital outstanding on the mortgage has been reduced to 66% of 2005 purchase price. However it would equate to 89% of sale price of a nearby house.
Mortage repayments are being applied as follows:
Portion going towards capital: 67%
Portion going towards interest: 24%
Portion going towards life policy: 2%
Portion rebated on foot of Tax relief: 6%
Should I sell or should I go now?
Will lose tracker, will lose TRS, will pay a lot of interest on start of next mortgage.
At the same time, I do not intend living in the house for more than another 2 years.