what best for clearing mortgage? one account, abbey flex or just overpay on currnet?

hezb

We currnetly have a halifax mortgage that has just come out of its fixed rate and still owe 63,000 what is the best way to clear this?? could pay approx 1,000 of a month. Do we swap it to a offset mortgage or just do over payments??

I am very confused and any help would be gratfully recieved! :A

crockpot

Hi

I am no expert, but best to see if you can overpay on your current mortgage deal, not all let you do it or even charge a penalty.

If you have a look on www.egg.com there is a simple calcular which will let you play around with figures. Flexable mortgage.

Also have a look on www.moneysupermarket.co.uk? and compare offsett accounts.

I have heared that the `one account` is expensive high apr

Most banks and building societys now offer `offset or flexable` mortgages.

I am with Yorkshire building society which works for me, can view accounts online and xfer money, can also pop into a local branch and pay my loose change off my mortgage, but depends where you are in the country.

Also do you want a mortage that has just savings accounts linked to it-like YBS or do you want more of a current account mortgage which is like the `one account`.

Would not trust my hubbie with a current account mortgage cause you can spend up to a set amount. Ie mortgage debt £80k but `allowed to be £90k in debt, so you can say buy a car and put it on your mortgage!!!

wymondham

hezb wrote: »

We currnetly have a halifax mortgage that has just come out of its fixed rate and still owe 63,000 what is the best way to clear this?? could pay approx 1,000 of a month. Do we swap it to a offset mortgage or just do over payments??

I am very confused and any help would be gratfully recieved! :A

Hi Hezb, The One Account is one way of doing it, but it is a lifestyle change rather than just another Mortgage Product - might/might not be appropriate, but read this for more info:

http://forums.moneysavingexpert.com/showthread.html?t=587535

autocasher

if you're overpaying with halifax, check on their limits - most of their mortgages let you pay 10% of the outstanding loan balance over the past, or rolling, year...any more and you would incur charges....so on your current balance you could only overpay about £6300 as of now, or about £500 per month. this would obviously decrease too as your balance falls.

the other way would be to see how much your payments would increase if you reduce the actual term - halifax do that for just a £10 admin fee - its one way of getting round their overpayment limit.

hope this is of some help

hezb

thank you all for your comments I am going into the halifax tomorrow and see how much I can overpay now that I am no longer tied into any deals! I think the one account after reading up on it would be to tempting!!!!!! and would take longer to pay off then my current one!!!!!

thanks again

setmefree2

Hi

Your mortgage hasn't reverted to the std variable rate has it? Because if it has you need to negotiate a new rate...

lauren565

hi i would like to recommend the abbey flexible mortgage, i have had this for 2 years and find it very easy and straightforward. (in my opinion!) good luck with your overpayments. 63 is not a large mortgage so hope it all works out for you!

hezb

setmefree2 wrote: »

Hi

Your mortgage hasn't reverted to the std variable rate has it? Because if it has you need to negotiate a new rate...

we looked at new rates but with the fees added to standard mortgages to get a good rate there where no real savings on our size mortgage. The most I could of saved was £7 a month now for that I don't want to be tied in and we are considering moving in the next year or so!! so not worth it! That is why I considered the one account, but feel it is not right for us at the moment.

FairyElephant_2

Hiya,

We have a great mortgage with Northern Rock - I fixed it for 5 years 2.5 years ago at 5.19% (best decision I made in a long time!), but the best bit is that we can overpay as much as we like, and if we find we need it back out again, just one telephone call and in a couple of days the money is back in our current account - I love it!!!!

Don't know if they still offer the same sort of thing at the mo' due to their problems, but I have been assured that if they get taken over or whatever, the new owner has to abide by the terms & conditions for the term of the mortgage, so I am not too worried!

Good luck on what ver you decide, but as previous poster said, make sure you get another deal & don't stay on the normal variable rate too long......

FE

melvis

If your product penalty period has finished then you should be able to make as much overpayment as you like, cos no deal usually means no Early Repayment Charges. If your deal has ended though this usually means you revert to Standard Variable Rate which is generally over 7% so you'd be better off getting a Flexi a/c.

With the Abbey flexi plus a/c they sometimes pay your legal fees up to about £250 but if you end your mortgage within 2 years you'll have to pay this back. That's the only tie in with it though, your free to make as many overpayments as you like, either regularly by increasing your monthly payment (the difference between your standard monthly payment and your increased payment will be credited to your Savings Pot) or you can just pay your standard monthly payment and make one off overpayments to your Savings Pot.

Hope this helps x

wymondham

hezb wrote: »

I think the one account after reading up on it would be to tempting!!!!!! and would take longer to pay off then my current one!!!!!
thanks again

I would doubt One Account would take longer, as 100% of your income automatically goes to paying off the mortgage debt (minus your bills), so it's unlikely you would/could overpay to this extent with your current/future Halifax deal without possibly juggling finances each month (if possible, and would you do this?)... All hinges on your circumstances of course, but just thought you'd like to know.