took a look at our finances and decided to move some savings around. We have a small lump sum offset against our mortgage with northern rock. Mrs gixer rang up to transfer the funds only to be told she couldn't!
We would have to under go a means test, or something like that, to prove we could afford to make the payments on the mortgage without the lump sum to offset it, and that the house was still the same value or better and that we still had an income similar to what we declared when the mortgage was agreed.
Fairly sure we will be fine if "tested" but thats not the point. We where not aware of this rule and some people in the financial industry where not aware either. So thought some of you may want to to check your situation if you have a similar "one" style account, esp in the current climate, as it seems its a little known fact, not to mention a bloody cheek esp when you consider we transfered the lump sum from another account some considerable time after the mortgage was completed. It was never part of the mortgage agreement at the outset.
It may be that this is all part of the govt. bail out and are protecting tax payers money. Or its becoming the norm as part of these newer style accounts, either way, thought some may want to know if you cant get your savings when you need to.
Or you all know all about it, in which case thats fine. :-)
Cheers
Chris
Author
Topic: northern rock/offsetable mortgages/beware (Read 407 times)