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    • dysucker
    • By dysucker 18th Oct 16, 10:07 AM
    • 18Posts
    • 2Thanks
    Offset mortgage - what happens next?
    • #1
    • 18th Oct 16, 10:07 AM
    Offset mortgage - what happens next? 18th Oct 16 at 10:07 AM
    Hi all,

    So, I have an old RBS OneAccount offset mortgage, and it is now pretty much repaid.

    I am aiming to keep it open a little longer for the benefit of having the facility until I've accrued a decent chest of funds to feel happy to close it down - but what happens next?

    When I bought my house many years ago, I originally had about 5 bank accounts which I used to manage my money; once I opened the offset mortgage account, it no longer made financial sense to have money in separate accounts.

    So, now I have an offset mortgage which I use as a bank account, I have all of my direct debits, standing orders, etc all flowing out of this account - but once I close it down, what happens?

    Does RBS automatically switch it into a standard current account? Can I make use of the bank switching service straight from an offset mortgage account?

    In an ideal world, I'd rather be as far away from RBS and all associated RBS brands, I don't trust them; as as much as bank switching sounds easy, I can't seem to find anything about what happens with all the regular account stuff when an offset mortgage like this is closed down.

Page 1
    • MallyGirl
    • By MallyGirl 18th Oct 16, 12:26 PM
    • 2,611 Posts
    • 7,606 Thanks
    • #2
    • 18th Oct 16, 12:26 PM
    • #2
    • 18th Oct 16, 12:26 PM
    Sorry I can't help with anything useful but I will be watching with interest as we aren't far behind you. Although the interest rate isn't great on the account I have most of our remaining balance stoozed at 0% elsewhere so we pay very little in interest and the flexibility has been hugely valuable in the last few years.
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    • AnotherJoe
    • By AnotherJoe 18th Oct 16, 1:10 PM
    • 9,032 Posts
    • 9,924 Thanks
    • #3
    • 18th Oct 16, 1:10 PM
    • #3
    • 18th Oct 16, 1:10 PM
    Not sure if RBS/One is the same as Barclays but when i closed my Barclays /Woolwich offset the mortgage was finalised/closed out and everything else continued as normal.

    You owe an amount that changes every month on your mortgage, is there any difference when it drops from 10000 to 1000 to eventually zero? There's just noting to offset against but that could happen when it was a small amount anyway.
    • MallyGirl
    • By MallyGirl 18th Oct 16, 3:19 PM
    • 2,611 Posts
    • 7,606 Thanks
    • #4
    • 18th Oct 16, 3:19 PM
    • #4
    • 18th Oct 16, 3:19 PM
    One account is a bit different as it is basically a current account with a massive overdraft. When it first started you could kill cashpoints by asking for an account balance because they weren't designed for such a big negative number!

    I guess it can carry on as a regular bank account but I don't know whether the switch functionality would work or not. Then at the agreed end date they would withdraw the facility I presume.
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