Which Mortgages allows this?

TeddyT_2

Hi there,

New here and just getting into the housing market. I am looking at an offset account and interested in the One Account.

I wanted to know what other mortgages out there offered no overpayment penalties.

Cheers

wannasavemoney

Have you looked at the Woolwich web site? You can get an idea of what your mortgage will cost and they have a good selection of mortgages on Woolwich.co.uk. We've got our mortgage with them and not had any probs.

TeddyT_2

Thanks. No haven't looked at them yet so will do. So they do not charge for overpayments? Ideally I would like a mortgage where I don't want to worry about overpayments and can put away as much as i want. TheOneAccount seems ideal in this case as not only can I put away as much as I want when I want I can also dip into those payments if I need to. However the downside is the interest rate which is risky...

tigtag02

Hiya

Our lender is also the Woolwich. We have just come to the end of our fixed rate term and changed to a lifetime tracker @ .85% over the BR (they do offer .18% but our loan isn't high enough :mad: :mad: )

My wafflings lead to my point being there are NO overpayment charges or penalties whatsoever

HTH
tigtag

wymondham

I have a OneAccount. Excellent account as it allows you to do whatever you want - as long as the rate seems ok to you.....

Prudent

Have a look at the Northern Rock flexible mortgage. I had one and there were no penalities for overpayment. I repaid until the last £100. The rate was competitive, I don't know what it is now.

jamesd

Use a mortgage search site and look for flexible mortgages. You'll find hundreds of them. Most offset mortgages are also flexible on the mortgage part.

There's no need to pay the very high One Account interest rate. Just put your overpayments into the offset account of any offset mortgage and you can draw on them whenever you like.

hebe

We have a Woolwich ofset mortgage and it has been great... up until the point when it got transferred to Barclays. The mortgage itself is still great but the phone customer service has been so poor that we are remortgaging with first direct. Their offset doesn't have any overpayment charges either.

everton09

Funny you should mention the woolwich customer service, Hebe, I have done exactly the same and remortgaged from woolwich to First Direct.

MarkyMarkD

You don't need an offset. Most flexible mortgages will allow you to overpay and underpay (and draw down the overpayments) and they'll generally have lower rates than true offsets.

nrsql

Have a look at the First Direct 10 yr fixed offset at 5.69%. There are early repayment charges - which would apply if you close the account rather than if you port it or pay the equivalent amount into the offset account. Don't know what the early repayment charges are though.

Most offsets tend to be very expensive and unlikely to save money. The One Account seems to be 6.7% at the moment and will probably rise.