MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I have £80k which will be available from Thursday.
In the short term (until I decide what to do with it to potentially make it work harder) I am going to put it all into my flexible mortgage (no fees for overpaying/withdrawing etc).
The thing is, I can only transfer £10k a day without paying a fee. If I move it all on one go, HSBC will charge a £30 fee.
So, given that the mortgage rate is 3.6% (calculated daily) and there is currently around £106k outstanding, would I be better off paying the £30 or just do it over 8 days without fees?
My brain is nowhere near clever enough to work that sort of stuff out but I am sure there will be someone here who can.
Ta.
If you have £80k spare, you don't need to worry about the £30.
Maths not math.
HTH.
s
80 grand knocking about and worrying about £30... #firstworldproblems
Major jealousy on my part unless you got it through some beloved family members passing.
I would shorten your mortgage by 15 years, or free up some monthly cash.
as above +1 for maths.. bloody american doucheisms 😉
I reckon it will easily save you more than £30 if you transfer the whole lot in at once, though I haven't actually worked anything out 🙂
Besides, having to do 8 transfers will eat in to your time - how much could you bill for 40 mins work (8x5 mins)?
I make the interest around £10.48/day on £106k and around £2.56/day on £26k, a difference of around £7.92/day. That's £63.36 over 8 days but only using the whole amount transferred at the beginning or end of the 8 days. By reducing £10k/day you reduce the amount of difference by an amount i can't be bothered working out. It would be easier if you just gave me the lot and stopped worrying your pretty little head about it.
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Besides, having to do 8 transfers will eat in to your time - how much could you bill for 40 mins work (8x5 mins)?
this
time is money
unless you got it through some beloved family members passing.
As opposed to those horrible unbeloved ones 🙂
I reckon its from a shipment of nose-candy he safely got through the docks. I'm right, aren't I?
And sort it out MF. This isn't Sesame Street! Its maths not math. 😉
Major jealousy on my part unless you got it through some beloved family members passing.
Unfortunately it is this. 🙁
Ohh and I said 'the math' paraphrasing Ali G, not an Americanism. 😀
Well don't I feel like a shit
£30 transfer fee will work out cheaper
richmtb - Don't worry about it - I should have said.
By the sounds of it the difference won't be that much - if it had been hundreds of difference I would have paid the fee.
I can do the transfers from home whilst tea* is cooking. Or do it instead of wasting even more of my time on here. 😀
*Dinner for the Southerners amongst us.
Do it in one go. Far less faff, and £30 out of £80k is like tweezering a single pube out of a 1970s German skin flick.
"[i]By the sounds of it the difference won't be that much - if it had been hundreds of difference I would have paid the fee.[/i]"
Hundreds? It couldn't possibly have saved you more than £30.
It works out roughly the same either way. My back of the envelope calculations suggest that you'd save £27.63 more from paying it in in one lump sum (not counting the transfer fee) than paying £10k per day. That is based on some assumptions about how/when interest is compounded on your mortgage and when they credit your account with the payment. I have also ignored the fact that the 10k per day will probably not be possible at weekends but interest will accrue.
In the short term (until I decide what to do with it to potentially make it work harder) I am going to put it all into my flexible mortgage (no fees for overpaying/withdrawing etc).
If it was me, I'd just leave it in the mortgage forever.
If it was me, I'd just leave it in the mortgage forever.
Better off leaving it in a different mortgage.
Hundreds? It couldn't possibly have saved you more than £30
Good point.
You see - I am no good with mathematics.
If it was me, I'd just leave it in the mortgage forever.
Is one thought - I have roughly worked out that I can pay off the mortgage n full in around 3 years if I continue to overpay (putting in the same as I currently do).
Better off leaving it in a different mortgage
But I would need a flexible mortgage so I could get some of it back when I decide what to do with it (ie set up accounts for my children) and I haven't seen any with a better rate than that. Happy to be proved wrong though.
Would 'only' having £79,970 actually bother you?
I meant buy another property with it.
Would 'only' having £79,970 actually bother you?
Probably not but I just wanted to avoid paying the bank unnecessarily. Probably not thinking about the whole situation in any way logically at all.
I meant buy another property with it.
One of my brothers is considering this - I don't think I'd want the hassle - I already run my own business and have a young family so I want to simplify my life if anything (ie get rid of my mortgage and just worry about earning enough to feed my family and enjoy seeing my girls grow up rather than spending more of my time sorting out another house. A friend has two houses and he always seems to be at the rented one doing something or other rather than being at home with his little boy.
A friend has two houses and he always seems to be at the rented one doing something or other rather than being at home
Thats what he tells the wife 😉
As above it would be better (approx £60) off to pay in one lump sum as long as you have no early repayment fees on your mortgage which you say there isn't. Currently interest rates are less than mortgage rates so it makes sense to pay debts rather than save for a rainy day.
You will be £5.07 better off if you transfer it in one go.
EDIT: £5.51 actually.
Agree with MrsPoddy, get the mortgage over & done with ASAP.
There you go, it's either (a) £27.63, (b) "approx £60" or (c) £5.51 less expensive to move it over in one go. I suppose at least they all agree that it's cheapest to stump up the £30 🙂
Thats what he tells the wife
If she was my wife I would rather stay home with her 🙂
Thanks for all advice - if I am in town on Thursday I will pay the fee then, otherwise I will do it a little bit each day.
Actually the 27.63 is the closest, I forgot you can transfer £10K on the first day so the maximum you are losing out on in interest is interest on £70K. But it was 27.63 when compared to a charge of £30 so you are actually worse off by £2.37. Is the time taken to make a transfer worth £0.34? Considering the amount of time you spend on posting here, probably not, but the same could probably be said about me now!
Me I'd do want Mike says and leave it in there, I blew a windfall once before and it was ace. If I ever get another it'll be pay off my mortgage. My windfall did clear all other debts though but some have come back, Ooops!
"[i]But it was 27.63 when compared to a charge of £30 so you are actually worse off by £2.37.[/i]"
To me "you'd save £27.63 [i]more[/i]" is a relative statement, ie relative to the alternative option having taken the £30 fee into account. Even if it didn't take that into account, the £27.63 was a saving relative to something and the £30 is a cost so I can't see how they can end up £2.37 apart.
Maybe good with math and good with English don't always go together 😉
You guys got it all wrong its indeed around the 30£ mars if you tae the assumtion that he is getting no interest at all. Though he might(should) get some interest on the amounts not yet paid in and in that case the transferring in parts is most likely the most generous.
So next maths quastion from which earned interest rate does it become beneficial to pay in parts. Extra bonus credits if you take into account weekends possible non transferability.
To me "you'd save £27.63 more" is a relative statement
Whilst the poster's wording was ambiguous, the ambiguity was resolved in my mind by coming to the same result, hence my conclusion that was the most accurate calculation before hofnar threw the business days and interest received spanners into the works. The former being the more important in terms of magnitude. Even then he has been too simplistic because you need to tax effect the interest received.
It is quite clear to me that this question should not be resolved on a forum, but with the benefit of professional advice, whilst the cost of this would completely negate the potential benefits, being correct is more important than money.
To me "you'd save £27.63 more" is a relative statement
Whilst the poster's wording was ambiguous, the ambiguity was resolved in my mind by coming to the same result, hence my conclusion that was the most accurate calculation before hofnar threw the business days and interest received spanners into the works. The former being the more important in terms of magnitude. Even then he has been too simplistic because you need to tax effect the interest received.
It is quite clear to me that this question should not be resolved on a forum, but with the benefit of professional advice, whilst the cost of this would completely negate the potential benefits, being correct is more important than money.
Alternatively, if he has any common sense he will just pay the fee and save himself the time and effort and also, once the inability to transfer at the weekend is taken into account, a bit of cash.
mastiles_fanylion - Member
Major jealousy on my part unless you got it through some beloved family members passing.Unfortunately it is this.
sorry to hear that fella... I'd rather have my loved ones than money any day. 🙁
make 'em proud however you spend it. 🙂
"[i]It is quite clear to me that this question should not be resolved on a forum, but with the benefit of professional advice[/i]"
I think the first reply was the most pragmatic one. The absolute best that could be hoped to be saved was £30 on an £80k payment - at my hourly rate of brainpower that's enough to end the process 🙂
"any spare change mate" 😯
I thought my parenthesis made it clear this was before taking off the £30 transfer fee. Sorry if it did not. I also made clear that weekends would screw it up.Maybe good with math and good with English don't always go together
Mefty,
Appologies for not trowing in the tax its prob cos I barely pay tax on interest as I spread my cash over differen countries and makes sure to change me residency if worthwhile.
Why the hell does a bank want to charge you £30 for transfering YOUR money into YOUR mortgage account???
Even if they do, why not charge for the 10k transfers as well?
Bloody banks, pissing all over us! 👿
It doesn't matter we have done important work here!
sorry to hear that fella... I'd rather have my loved ones than money any day.
make 'em proud however you spend it.
I hope I can - and there'll be no blowing it - treating myself to a new iPad (engraved with 'mum & dad') and the rest will be invested (by paying off the mortgage initially I think) and for my girls in savings accounts for when they go to uni or whatever.
I agree with Neil f though - money paid in today but it is theirs till Thursday then they want to charge more if I want it out quickly. I wish my mortgage account allowed cheque deposits - it'd have taken a step out.
I reckon you 'save' £2.48 by doing a 10k each day. That doesn't take into account any interest earnt whilst you have the positive balance. If you forget to do it one day then it would have have been cheaper to pay the fee.
As a matter of interest have you tried asking the bank why the charge £30, then before they answer, asking them what's involved in closing your account and moving to another bank (asking them if they value £30 above your business)?
never mind the cash
math is fine by me - or math's maybe ?
😉
🙄
😛
There's a lesson learned - £30 to have it done in one go and not waste my time moving £10k a day? HAH!
3/4 of an hour sat with a bloke who faffed and took his time and even asked ME what to put in the 'Beneficiary' box on his screen. How the chuff do I know? I gave him the sort code, account number, account name etc but he still asked me what to fill in on HIS screen!
Then told me my signature didn't match the one they had on system even though it did.
I wish I had just done it myself on internet banking now.