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    • dysucker
    • By dysucker 18th Oct 16, 10:07 AM
    • 11Posts
    • 2Thanks
    Offset mortgage - what happens next?
    • #1
    • 18th Oct 16, 10:07 AM
    Offset mortgage - what happens next? 18th Oct 16 at 10:07 AM
    Hi all,

    So, I have an old RBS OneAccount offset mortgage, and it is now pretty much repaid.

    I am aiming to keep it open a little longer for the benefit of having the facility until I've accrued a decent chest of funds to feel happy to close it down - but what happens next?

    When I bought my house many years ago, I originally had about 5 bank accounts which I used to manage my money; once I opened the offset mortgage account, it no longer made financial sense to have money in separate accounts.

    So, now I have an offset mortgage which I use as a bank account, I have all of my direct debits, standing orders, etc all flowing out of this account - but once I close it down, what happens?

    Does RBS automatically switch it into a standard current account? Can I make use of the bank switching service straight from an offset mortgage account?

    In an ideal world, I'd rather be as far away from RBS and all associated RBS brands, I don't trust them; as as much as bank switching sounds easy, I can't seem to find anything about what happens with all the regular account stuff when an offset mortgage like this is closed down.

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    • MallyGirl
    • By MallyGirl 18th Oct 16, 12:26 PM
    • 1,432 Posts
    • 3,558 Thanks
    • #2
    • 18th Oct 16, 12:26 PM
    • #2
    • 18th Oct 16, 12:26 PM
    Sorry I can't help with anything useful but I will be watching with interest as we aren't far behind you. Although the interest rate isn't great on the account I have most of our remaining balance stoozed at 0% elsewhere so we pay very little in interest and the flexibility has been hugely valuable in the last few years.
    OneAccount flexible mortgage due to be repaid Nov 2025
    Current o/s amount - £22k @ 3.9% 2.5% LTV
    £51k stoozed on 0% cards till '18 / '19
    MF Target date - Jan '17 (we will be 49)
    • AnotherJoe
    • By AnotherJoe 18th Oct 16, 1:10 PM
    • 3,714 Posts
    • 3,738 Thanks
    • #3
    • 18th Oct 16, 1:10 PM
    • #3
    • 18th Oct 16, 1:10 PM
    Not sure if RBS/One is the same as Barclays but when i closed my Barclays /Woolwich offset the mortgage was finalised/closed out and everything else continued as normal.

    You owe an amount that changes every month on your mortgage, is there any difference when it drops from £10000 to £1000 to eventually zero? There's just noting to offset against but that could happen when it was a small amount anyway.
    • MallyGirl
    • By MallyGirl 18th Oct 16, 3:19 PM
    • 1,432 Posts
    • 3,558 Thanks
    • #4
    • 18th Oct 16, 3:19 PM
    • #4
    • 18th Oct 16, 3:19 PM
    One account is a bit different as it is basically a current account with a massive overdraft. When it first started you could kill cashpoints by asking for an account balance because they weren't designed for such a big negative number!

    I guess it can carry on as a regular bank account but I don't know whether the switch functionality would work or not. Then at the agreed end date they would withdraw the facility I presume.
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