one account etc....

chrisbagsy

Hi Help
My problem is not so straight forward but useful advice would be gratefully received... Here is my tale.
I own a second property that is being sold. (completion date is 27 April). This will give me a profit of £27K. I leave my present job on 10 May which will give me £44K payout and £8k pension. Have a new job that will pay £23.5k.:eek: Have £7k savings. Property we live in is worth £150k, outstanding mortgage is £99k. of which £50k is Interest only, the rest is capital and repayment. I have contemplated shifting to the "one account" but keep having nagging doubts as their current interest rate is 6.45%. My rate with Northern Rock is fixed at 4.889% until 2015. I realise that moving over could reduce the term of the mortgage but need convincing it is the right thing to do.
Many thanks
Chrisbagsy

Rick62

Why on earth would you want to move from 4.89% to 6.45%? It will increase your interest costs by about £1500/year.

Stay with Northern Rock, use their flexible facilities if you want, use extra money to make overpayment if you want. Moving to the one Account would be total madness.

LisaT186

Northern Rock are great for flexibility, have a word and see what they will offer. Failing that have a look at other offsets as said above, Intelligent Finance perhaps?

MortgageMamma

Intelligent finance have a 2 year discount tracker offset at 5.24% with 799 fee. did one this morning

chrisbagsy

Al_Mac wrote: »

Look around the other off set accounts, you might find a cheaper one.

Is your fixed rate liable to a redemption penalty. Are you allowed to make lump sum payments off it and how much?

My redemption penalty is around £1500. I am allowed to make lump sum payments but feel that if I made an overpayment with either or both of my Lump sums I would lose out on its use elsewhere.

chrisbagsy

Rick62 wrote: »

Why on earth would you want to move from 4.89% to 6.45%? It will increase your interest costs by about £1500/year.

Stay with Northern Rock, use their flexible facilities if you want, use extra money to make overpayment if you want. Moving to the one Account would be total madness.

Thanky you for yor frankness... Will phone Northern rock in the morning and discuss.:beer:

Rick62

The great thing about Northern Rock is you could use your lump sums to reduce your mortgage, but if in the future you wanted the cash back for something else you just call them up and they transfer it back into your account, no fees, and at the same Fixed rate.

chrisbagsy

Rick62 wrote: »

The great thing about Northern Rock is you could use your lump sums to reduce your mortgage, but if in the future you wanted the cash back for something else you just call them up and they transfer it back into your account, no fees, and at the same Fixed rate.

Thanks for that rick. Very interesting point that may well have stopped me going down the ""one account"" route.