Scotsman

iTrader: (3)

It looks like our off-set mortgage (One Account) is going to hit zero in the next couple months. What a godsend it's been and delighted we changed over 6 years ago.

Does anyone know what then happens? Do we just get a set interest rate for the savings we then have in that account going forward? Will the account close?

I know that we'd get a better return by having the funds elsewhere. We're probably going to move house in the next 6 months and will need some more capital to go on top of what we'd get for selling the current place and I'd like to keep the off-set model as that's worked well for us - as we paid the house off well ahead of plan.

Are off-set mortgages easy to get these days? Can I keep my current one open and is it easy to get a facility against the next property?

Thanks
Richard.

corradoboy

Don't let it hit zero ! Keep it going by making sure there's always a few quid owed in there, then you can use it with any further arrangement fees and keep whatever good rate you may or may not have. Mine is fixed at 2.24% (so 2.74 at the mo) above base for life, and when I discussed borrowing more it would have jumped to 4.74%, nearly doubling my interest payments.

cster

I've had mine in the plus several times, I guess it just goes until the end of the planned time to which their projections (plan) are based.

john banks

The rules are a bit different for different offset mortgages. Ours wouldn't let us hit zero, and below a certain amount you couldn't then draw on your facility again. Some if you let it hit zero will charge you final fees and the lawyers will want a slice too in Scotland IIRC, I got stung unexpectedly. At the time we also had our "deeds" to be stored somewhere. Some people just keep them, depends what is there, some say with Land Registry there is very little now, depends how complex the house title is.

Scotsman

iTrader: (3)

Wow - glad I asked! Thanks for the comments guys - really appreciate them.

Will be on the phone tomorrow/Tuesday asking some questions of the bank plus my old IFA (who I've not talked to for years - given everything was just shoved into the offset).

Dunk

iTrader: (1)

You need to check with your lender and T&C's, I'd of thought that so long as your mortgage account had a balance owing you haven't paid it off, regardless of the net position showing no net debt. The whole purpose of the offset is for you to decide how much and when to pay off the capital, the fact that it's paid off now isn't reflective of what you may want to drawdown in the future, hence the facility could easily remain open.

D

Scotsman

iTrader: (3)

Thanks - I'll give them a phone this morning