RAPID REPAY MORTGAGE

skorpio40

is the Northern Banks' "Rapid Repay"mortgage account any good? ???

andyman_4

I have it.

It depends on your circumstances - it is designed to pay off your mortgage as quickly as possible - thus saving you the cash that would be wasted on interest.

To do this you need to accumulate spare cash each month.

If just looking to pay the bare minimum each month, you won't see the benefits.

It depends if you have a "live for today" or an "invest for the future" attitude.

It is similar to any loan - the quicker you pay it off, the less interest paid on it.

skorpio40

Thanx andyman. I tend look at these things sceptically. >:( Still not sure. ???

leskerr

I have it.

If just looking to pay the bare minimum each month, you won't see the benefits.

Not true.

Regardless of how much you "pay off" each month, the way that you operate the account dictates the benefits.

A simple example:
- If you have a net monthly salary of £2000, all of which you spend evenly over the course of a month, your "average balance" will be in the region of £1000.
- This balance is effectively offsetting the money that you borrowed - therefore you are not paying interest on that £1000 of your mortage.
- This has the same effect as saving £1000 at the mortgage interest rate - but with the additional benefit that it is not taxed.

If you don't spend all of your monthly income, then the benefits will be greater.

This is their webpage describing the product:
http://www.nbonline.co.uk/0,,43973,00.html

I don't see an illustrator, you could ask in your local branch. Alternatively, other banks offer similar products (e.g. Virgin One) and probably have an online illustrator.

Hope this helps

Les