Virgin One Account - lower your interest rate!

ayde_bse

Hi all,

My first post, so be gentle with me.

Hopefully some of you will have a Virgin One account, or simular mortgate accounts which this will work on, allowing you to lower your interest rate on your mortgage for the cost of a phone call in one instance.

I have a £80k mortgate facility on a property valued in 2001 at £100k as far as far as VirginOne are concerned (an 80% mortgage). There are two ways in which I can reduce my monthly mortgage interest payment on this which are as follows:

1) The property is now worth £135k. If I pay a £75 fee and get the house revalued, VirginOne will take it that I have a 60% motgage on my home, and would lower my monthly interest rate by up to 2%!!!

alternatively

2) As my OneAccount is like a current account, and I pay off my mortgage over time, after my 8 years with them I now only owe £60k on my mortgage. If I reduce my agreed facility from £80k to £70k I effectively have a 70% mortgage on the value of my property, once again leading to a lowering of my interest rate. This of course is the best as it only involved a 10 minute phone call :-)

I've recently take advantage of the 1st option, and saved enough in interest to repay the valuation fee back in a couple of months.

Happy money saving.

Ayde_bse.

mattyh

very true. I'm biding my time as my mortgage is just teetering on going below 50% - and onto the lowest interest rate band with the one account. However, if I ask for a re-valuation too soon and it's still over 50% i'll be £75 worse off!

It's a shame you have to pay them and that you can't just take advantage of a friendly estate agent. What's more, I don't think there's any route to appeal if you disagree with their valuation.

So i'm rooting for another few percent rises in the property market ideally!