The Newcastle Big Home Saver ISA

NS118

Hi,

I'm new to this forum and to ISA's. I have been looking at the Newcastle Big Home Saver ISA as the interest rate seems to be the best around. I was looking at opening an account but it is aimed at saving for a mortgage and talks about getting a mortgage with Newcastle. I already own a house and have a mortgage and am just looking to save money and after the best interest rate.

Does any one know if I could open the account to get the interest rat but not take out a mortgage? I'm not sure if there is a catch to it and if you are tied in to an agreement with the bank regarding the mortgage.

Surely I can open it get the rate for a year or so and then move it to another ISA?

Cheers

patientperson

NS118 wrote: »

Hi,

I'm new to this forum and to ISA's. I have been looking at the Newcastle Big Home Saver ISA as the interest rate seems to be the best around. I was looking at opening an account but it is aimed at saving for a mortgage and talks about getting a mortgage with Newcastle. I already own a house and have a mortgage and am just looking to save money and after the best interest rate.

Does any one know if I could open the account to get the interest rat but not take out a mortgage? I'm not sure if there is a catch to it and if you are tied in to an agreement with the bank regarding the mortgage.

Surely I can open it get the rate for a year or so and then move it to another ISA?

Cheers

In my view you can.

Extract from Newcastle :
When you have saved your mortgage deposit you can choose a mortgage product from our current range available at that time.

The operative word is 'CAN' in conjunction with an open ended 'when you have saved your mortgage deposit'.

If you already a member of Newcastle BS they are soon releasing a 3% 5 year ISA if that is of interest.

Our Celebration Bond (Issue 2) offers a very competitive rate of up to 3.00% Gross/AER*, and what’s more, it’s fixed for five years,
Also available as an ISA and open to transfers from other providers

NS118

Thank You for your reply I was thinking the same thing.

I will have a look at the Celebration bond?

Cheers

TighterThanTwoCoatsOfPain

Hmmm locking away for 5 years?? Consider what the penalties are for withdrawal.

hgt

NS118 wrote: »

Hi,

I'm new to this forum and to ISA's. I have been looking at the Newcastle Big Home Saver ISA as the interest rate seems to be the best around. I was looking at opening an account but it is aimed at saving for a mortgage and talks about getting a mortgage with Newcastle. I already own a house and have a mortgage and am just looking to save money and after the best interest rate.

Does any one know if I could open the account to get the interest rat but not take out a mortgage? I'm not sure if there is a catch to it and if you are tied in to an agreement with the bank regarding the mortgage.

Surely I can open it get the rate for a year or so and then move it to another ISA?

Cheers

You can indeed have a Newcastle Big Home Saver ISA without taking out a mortgage, that's exactly what I do! I checked with Newcastle before opening and they explained that even though the account is targeted at those saving for a deposit, there are no restrictions on who can open one of these accounts. There is no obligation to take out a mortgage or indeed go through the process of having an offer etc. The lady I spoke to did say that I might receive details of current mortgage offers etc - but so far I've not had anything (I've had the account for about 6 months).

As long as you pay money in each month, this looks to be a very good account. I've used Newcastle for years, and cannot fault them to be honest. And yes you can indeed transfer to another ISA at any time (just remember to open the new ISA first, then use the ISA transfer process). This particular ISA doesn't accept transfers in, but there are no restrictions on transferring out.

garfield33

Hi, I opened this ISA in September and noticed that the interest is paid monthly. Do you receive interest on the interest, or is the interest only paid on the money you pay in? Just curious, it would only be a matter of pennies for me, but it's nice to know!

I had a look at the T&Cs but my financial lingo isn't good.

Thanks

thenudeone

TighterThanTwoCoatsOfPain wrote: »

Hmmm locking away for 5 years?? Consider what the penalties are for withdrawal.

120 days loss of interest

hgt

garfield33 wrote: »

Hi, I opened this ISA in September and noticed that the interest is paid monthly. Do you receive interest on the interest, or is the interest only paid on the money you pay in? Just curious, it would only be a matter of pennies for me, but it's nice to know!

I had a look at the T&Cs but my financial lingo isn't good.

Thanks

Yes you get interest on the interest (compound interest)