Virgin One Account Mortgage advice please?

getmore4less

swaggy123 wrote: »

Getmore4less states that there have been a lot of complaints. I have had a few minor issues with them. Mostly over a change of address (I dont live at the morgage address) but the one account is in the top 3 of Which Money customer statisfaction survey. One account is owned by RBS (not virgin).

The main complaints have been the interest rate manipulation and high rates.

Getmore4less also states that it is not the cheapest, true, and you will need to balance the (slightly) higher interest rate against the flexibility and the fact it will be charged against less money. The best rate is if you only borrow 50% of the value of your home. (you pay for the new valuation as well).

FD and Barclays have consitantly had cheaper offset product(there are others but these are the two I monitor) and offer the same or more flexability than the One Account.

Even now OA with 50% LTV the rate is 3.65% FD will do 2.79% no fee on 65% or if you pay the one off fee 2.49% (the 75% rate is cheaper than the 50% rate also)

Depending on the size of your mortgage you probably could have saved loads of money if you had moved, probably still could.

jenks282_2

So, let me get this right. In principal:
1. It could be a good option (provided I am careful with my money);
2. Virgin One isn't necessarily the best product but max LTV is 75%;
3. An offset mortgage may produce better rates;
4. An ordinary mortgage with an overpayment option may be my best option.

I'm glad I cleared THAT up.....:D

Thanks for your advice, it is appreciated!:)

jenks282_2

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[FONT=&quot]Core 6.15% fixed until 31/08/2010[/FONT]
[FONT=&quot]Total loan amount £126,500[/FONT]
[FONT=&quot]Interest only repayment[/FONT]
[FONT=&quot]Mortgage term 25 years[/FONT]
[FONT=&quot]Morgage started 30th January 2008[/FONT]

[FONT=&quot]Morgage rate will be 2.99 (therefore my payments will go DOWN, if I am not mistaken)
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This is my mortgage at the moment. Is it worth changing, will I get a better deal? I am more confused.



What sort of deal will I get with 90% LTV



Thanks
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getmore4less

With 2.99% I would stick with that and overpay don't think there wil be anything better with 90%LTV.

You can take a rise in rates so don't need to fix.

Overpayments will bring the debt down so improve LTV and give you the option to start looking for better rate in the future.

jenks282_2

getmore4less wrote: »

With 2.99% I would stick with that and overpay don't think there wil be anything better with 90%LTV.

You can take a rise in rates so don't need to fix.

Overpayments will bring the debt down so improve LTV and give you the option to start looking for better rate in the future.

Thanks for the prompt reply. How will this work as I am currently on an interest only mortgage? Will I have to swap to a repayment mortgage?

getmore4less

Check with the lender,

They should take payments on-line, standing orders, or cash(if high street), they may also increase your normal DD if you ask.

I would go for a methed that gives you control. on-line or standing order are the easiest for us.


check the mortgage does not have any overpayment penalties (Some have overhangs beyond the end of the fix date)