How to compare?

hollydays

We are going to put an offer in for a house tommorrow..
We have already decided that we are going to change from his "One Account ", CAM- type mortgage,as this type of mortgage is not good for us-in fact I dont really understand it- and neither does my OH.

The questions are these:

I am ploughing through all Martins notes on remortgaging and Brokers and where its saying compare your new mortgage with your old,is it easy to do this? With One Account?
I am going to ring One Account tommorrow to find out interest rate we are paying,but will it be easy to compare whatever chosen mortgage we go for with our current one,as it doesnt work in the same way as standard mortgages?

I am considering making an appointment with Charcol and speaking to London and Country tommorrow.

Also,My OH has a very good credit rating,but Martin says to spread out your applications as it could have a negative effect if you dont space them far enough apart?Well,how far? I am also finding that when i see some mortgages that I want to look into further online,when I try to look at them further,they dont let you find out details of early repayment charges etc without inputting info for a quote,and does this mean they will be credit checking his file at this point?

Does this make sense.I know nothing at ALL about mortgages and the job of researching it is down to me.

Have just read something from a Charcol broker saying a variable rate lifetime tracker might be a good bet at the moment,if you are not locked in?
Like most things on MSE,I am hoping if I go over the notes enough times I will get educated ,but I am sure I may have a few more questions.Please help,still reading the notes at 2am today!

WildHaggis

The one account mortgage (offset mortgage) can be great. If you are a money-saver, it can really work for you. It works by 'pretending' that the savings in your current account/savings acount have paid off that much of your mortgage. So, you pay interest on the lower figure, and don't earn interest on the amount in your savings. It does need some discipline though. If you don't like it, that's reason enough not to stay with a similar product.

MSE_Martin

Hi

If you read the remortgage guide you will see my views on the One account and the issues with it.

I must also take issue with the above quote

martin is not a mortgage broker. i have customers that make several applications at a time with fine credit

Does this make sense.I know nothing at ALL about mortgages and the job of researching it is down to me.

Please ignore this. Martin isn't a mortgage broker quite right; but Martin also has spent years looking at, researching and examining credit scoring and the people who run the systems; and credit industry.

The point is about spreading applications out - generally it refers to credit card and loan applications - but when applying for mortgages it is very important to see whether a full credit search is being done. If it is; then this goes on your file and potentially diminishes your credit score.

Now this doesn't mean you wont get a mortgage; but it can mean the offer you're given may be worse. If you have a good credit score anyway the impact is likely to be negligible; but if you're on the edge it can push you across.

For this read my 'credit rating' guide.

Martin

hollydays

Thanks,I am grateful for all sensible advice given.I had already researched , thanks to MSE,then looked at the home page of the business website of the person who made that statement. My first impressions -I noticed immediately two spelling mistakes. Was not impressed with the professionalism-so discounted what he said ,and he was pretty rude too, ( which is NOT smart when you list your website with your user i/d) which doesnt earn respect .As for his comments about googling for brokers-well isnt that a bit like picking a tradesman by an advert in your local newspaper?

As a result of reading the notes,I have learnt a heck of a lot more than I knew 2 days ago ( and i have bought mortgages before!). I have been able to speak to the brokers with more confidence,and hopefully get the products that are best for me.

What it has taught me,is,go armed with knowledge,dont deal with people who patronize you.