Cut 16 years off my mortgage ????

edited 28 June 2010 at 8:39PM in Mortgage-free wannabe
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bigruss1bigruss1 Forumite
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edited 28 June 2010 at 8:39PM in Mortgage-free wannabe
Thinking about changing to the One Account which is backed by RBS, they say they can take my 22 year mortgage and pay it off in six!?
Is this for real ?????????????????

Replies

  • wymondhamwymondham Forumite
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    It depends on you. If you have any disposable income then this will be automatically classed as a mortgage payment, so the more disposable income you have the quicker you pay off the mortgage (you don't actually make any mortgage payments in the true sense of the word, they just a take an interest payment off you). It's a marmite product, with some hating it, and some loving it. I loved it and managed to get rid of my mortgage very quickly as its the ultimate flexible product. One word of warning though, if you do not have financial discipline then you could get into serious trouble as it's easy to spend all the available funds!

    Do a search on here as there have been lots of stories on this.

    Good Luck!
  • newgirlynewgirly Forumite
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    I have had a virgin one account in the past, and have to say at the time it suited us very well as we only had to pay the interest every month, so we had lots more cash to spend, - we did not pay anything off in nearly three years! Luckily now we have our heads screwed on, and have gone for a traditional repayment but shortened the term from over 30 years to 12.
    It really depends on how good you are with money, only you know if you will be tempted, there are lots of people on here who say it has been fantastic and really helped then OP quicker.
    Good luck with whatever you decide to do, theres lots of MFW advice on how to find those extra pennies you didn't think you had.
    2022 MFW 67 - 33 month challenge to clear mortgage, month 3 completed and on track 🙂MFI3 No.12
  • dimbo61dimbo61 Forumite
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    The rates on the one account are not as good as First direct or YBS and yes you can save £50K in interest by clearing a £100,000 mortgage in 6 years instead of 22 but your mortgage payments go up by £1000 a month!!
  • wymondhamwymondham Forumite
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    dimbo61 wrote: »
    yes you can save £50K in interest by clearing a £100,000 mortgage in 6 years instead of 22 but your mortgage payments go up by £1000 a month!!

    That's how it's done.... that money stays in the account and acts as a payment, but it's still available and does not go anywhere... thats the thing about doing it this way....
  • dimbo61dimbo61 Forumite
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    Its the " does not go anywhere" bit that counts have you got a spare £1000 each month for the next 6 years.
  • wymondhamwymondham Forumite
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    dimbo61 wrote: »
    Its the " does not go anywhere" bit that counts have you got a spare £1000 each month for the next 6 years.

    This is the beauty of it. Sometimes you'll have £1,000 spare, othertimes it might be £50, but it does not matter as anything not spent (ie stays in the account) counts as a mortgage payment. It really focuses the mind!
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