One Account Mortgage

Sally_Henny_Penny

I would appreciate any advice on the one account mortgages. We are coming to the end of our fixed rate mortgage with Northern Rock. We will then have an outstanding mortgage balance of £20,000. I have been looking at calculations for the one account mortgages, and they do seem very favourable for what we are looking for.

Is there anything I need to be aware of with these types of mortgage as I am not familar with them at all and would this be the right way to go for us at this stage.

SHP

getmore4less

Not sure if it stll the case but the one account has not been the cheapest option for this kind of mortgage

Look at other options, FD, Barclays etc.


with a morgage this small, fees are the going to be critical to the overall costs

feisty1

Sally_Henny_Penny wrote: »

I would appreciate any advice on the one account mortgages. We are coming to the end of our fixed rate mortgage with Northern Rock. We will then have an outstanding mortgage balance of £20,000. I have been looking at calculations for the one account mortgages, and they do seem very favourable for what we are looking for.
Is there anything I need to be aware of with these types of mortgage as I am not familar with them at all and would this be the right way to go for us at this stage. SHP

Min Loan on One A/C 30k

getmore4less

With offsets so as long as the lending criteria are met(LTV,salary etc) it makes no difference how much you have borrow you just offset the excess.

VfM4meplse

I agree that the interest rate may not be the lowest offset but if you have money left over at the end of the month and would like to clear the mortgage fast then I can recommend The One account. The customer services and online facilities are great.

getmore4less

VfM4meplse wrote: »

I agree that the interest rate may not be the lowest offset but if you have money left over at the end of the month and would like to clear the mortgage fast then I can recommend The One account. The customer services and online facilities are great.

But when there are other offset products that do the same for less why throw money away?

feisty1

[quote=getmore4less;18573929]With offsets so as long as the lending criteria are met(LTV,salary etc) it makes no difference how much you have borrow you just offset the excess.[/quote]

Are you saying the minimum loan is not correct?

getmore4less

feisty1 wrote: »

Are you saying the minimum loan is not correct?

No I am saying it does not matter what the minimum is as long as the lending criteria are met.

You want £20k and the minimum is £30k so you get £30k pay of the other mortgage with £20k and stick £10k in your offset or just pay it off

Net effect you borrow £20k, job done.

Sally_Henny_Penny

Thanks for all your advice. The situation we are in is this. Over the past 12months we have really battered the mortgage to get it down to this figure. We obviously dont want any tie in's and of course still have the option to make overpayments. Northern Rock have advised that we will automatically go onto a variable rate at the end of the fixed term but they are quoting 5.09% which seems a bit steep to me. That said, I have requested quotes from other lenders who do not seem interested at all.

getmore4less

First direct and Barclays both have good offset products but rates and fees need looking at carefully.