One Account - really that good?

marky_b_2

I have a 15 year fixed rate at Northern Rock and they allow me to over pay as much as I want, the only condition that the have is if I repay early then I will early repayment charges.

so we have agreed that when I have about two payments left on the mortgage I will just recalculate my repayments to be spread over the remaining length of mortgage.

I think this is excellent :-)

Rick62

Northern Rock are unusual in offerring that flexibility. Otherwise what you suggest glenbat makes sense. The other thing you could do is put the mortgage on a repayment basis (or a shorter term, eg 15 rather than 25 years) and then make additional payments on top. Your regular agreed payments don't count towards the 10% overpayment allowance.

Doglover88

Thanks again
Didnt think of that Rick, say in 1 years time I owe £100k with 20 years to go (current payments are £710 pcm) rather than look for a 20 yr mortgage, take it out over 15 or maybe 10 and then still be able to overpay by 10% a year, which I doubt I would do as I would be paying an extra £700 a month anyway as it was half the term

Genius!

Coveredinbees!!!!

It depends what you need from your mortgage. We have a one account but we are currently doing our house up so need access to money easily, until we spend the money it's off setting the mortgage and the one account is perfect for that. When everything is completed on the house I plan to dump the one account and get a normal repayment mortgage.