Need some advice amongst all the confusion

shazbig

Hi

I struggle to understand all the different types of mortgage on offer, but think i know what i want (if thats make sense?) and hope for some advice please.

We are looking to either move or if that doesn't materialise then get a better mortgage and stay put. Either way we wish to change as we have a One Account and it doesn't work for us.

Firstly we want a mortgage which is seperate from our current account.

We think the best idea is a repayment mortgage, with a competative interest rate, that has no tie-ins and allows us to overpay without any penalties. Is there such a thing?

I have a endowment which will pay out in 5 years, so would like the option to use this to pay off a lump sum when it matures, without being penalised.

I have spoken to 2 brokers and they both recommend a tracker/flexible mortgage even though i would prefer a repayment.

I am sorry for being thick, and would really appreciate some advice

thanks
Shaz

tyllwyd

One thing you could do is speak to the One Account and tell them that you are thinking of changing. When we did that, they offered to change it into a mortgage plus current account - we didn't take them up on it because we had already decided to remortgage elsewhere.

Rick62

The OneAccount tends to have a high rate of interest, so for most people is not the best value.

What you probably want is a repayment mortgage with the ability to make overpayments. You can either get mortgages with no overpayment penalties at all, or (usually with a cheaper rate) ones which have penalties but allow you to overpay 10% of the balance without penalty.

This could either be a Fixed rate, which will not change during the initial fixed period, or a Tracker/Discount which will move if the interest rate moves.

Find a good (fees free preferably) broker and ask him lots of questions until you are absolutely clear.

Conrad

A 'repayment' mortgage can have interest that is fixed, tracker or discounted.

Repayment just refers to the fact the capital balance will reduce through the term.

All u need decide now is whether you want your payments fixed or to reduce / increase as rates change over time.

I personally prefer a fixed rtae as it gives me peace of mind.

Hope this helps