Advice on flexible mortgages please

michael_O_3

Hi,

first time caller :eek:

I want to get a mortgage that effectively gives me a facility to borrow money as and when and pay it back as and when. I believe that Northern Rock offer this and so do the One Account.

Other flexible deals do not seem quite so flexible, e.g. First Direct require a current account and will only lend for a specific purpose e.g. to buy a property or for home improvements etc. I would like to use a flexible mortgage account to pay off credit cards from time to time, to pay tax, buy a new car one day etc. etc.

Also, if I was to borrow say £250,000 and wanted to offset say £150,000 I would end up with £150,000 sitting in bank account that might be at risk in terms of the maximum £50,000 guarantee on savings in banks.

The One Account seems a bit vague in terms of it's future interest rate policy, and the Northern Rock seems a bit expensive. Any other ideas please?

Many thanks M_O

StuTheDon

Hi Michael,

Are you saying you have 150k cash available? If so, you are right, you would need to split is across 3 seperate and unlinked institutions to get the 50k protection.

If you dont mind me asking why would you not just pay off these costs with cash - you'll end up paying a lot more in interest this way.

You might need to engage an IFA or mortgage advisor as I am not aware of any products that can meet this need.