Abbey Flexible Plus Mortgage Account

Optimisticpair

UK007BullDog wrote: »

If you are concerned then use the money to actually pay off part of the mortgage instead of offsetting.

Thank you. I am trying to make informed decisions for us both.

Is it as safe and efficient as I think it is to repay early, firstly using a lump sum, then by overpaying and offset to retain fast access to savings in the next 5 years.

My OH was made redundant a few years ago and we hope it won't happen again in the next 5 years it will take to pay the mortgage off. There is only one wage until we move house and the car, which is essential for his work, will have to be replaced in a year or two. House renovation will wait unless it is essential.

Piyush_2

I have this product at base plus 0.5 for life. However I read this on Times Online:

Thousands of borrowers will miss out on cheaper mortgage bills because some of the biggest lenders prohibit interest rates on their tracker loans from falling below a minimum threshold.

Economists say interest rates could fall in the coming months as the Bank of England moves to boost the economy. The Bank cut rates by 0.5 per cent to 4.5 per cent last week, and experts say rates could fall to 2 per cent next year. But thousands of borrowers on tracker mortgage deals will not benefit from lower monthly bills because their lender will not pass on the cuts.

Halifax Bank of Scotland (HBOS), the country’s biggest mortgage lender, which is set to be taken over by Lloyds TSB, will not cut tracker rates if the bank rate falls below 3 per cent. Nationwide Building Society, the second-biggest lender, will also refuse to pass on any decreases if the base rate sinks lower than 2.75 per cent.

Abbey has a 3 per cent cut-off point on some older trackers, while building societies including Yorkshire, Skipton, Norwich and Peterborough and Scarborough operate similar thresholds on all their tracker deals.

For the rest of the story click: http://www.timesonline.co.uk/tol/money/property_and_mortgages/article4965372.ece

Does anyone with a simliar mortgage to mine know if this "cut off" applies to us? There is no terms & conditions thier website.

silvercar

You need to check the terms and conditions of your original mortgage offer. Look to see if there is a floor to the rate. Also worth looking to check whether you are linked to the Bank Of England base rate or to the lenders own standard variable rate.