Freehold Express

[Timo]

Does anyone know anything about, or have any experience with Freehold Express?
My daughter and husband have had an analysis done and have been told they could pay off their 30 year mortgage in 14 years and save as much as $137,000 in interest. It sounds too good to be true so my conservative nature tells me it must be.
I'd me keen to know if anyone has any experience with this organization and what, if any dangers or legal implications there could be.
Cheers

[flyernzl]

Don't know of them, but such concepts are reasonably frequently promoted.

They usually involve a combination (a) making your normal mortgage payents every four weeks rather than once a month so you make 13 payments a year rather than 12, and (b) having part of the mortgage as a variable overdraft, paying all wages and salary income directly into this account, paying all your bills by a credit card, and then paying fully off the credit card on the last possible day each month with cash from this account thus effectivly reducing the interest you pay be means of the 'free money' from the credit card.

Both do work, require discipline, and you do not need to pay some guru for setting up the systems imvolved.

[Neongreen]

Don't know of them, but such concepts are reasonably frequently promoted.

They usually involve a combination (a) making your normal mortgage payents every four weeks rather than once a month so you make 13 payments a year rather than 12, and (b) having part of the mortgage as a variable overdraft, paying all wages and salary income directly into this account, paying all your bills by a credit card, and then paying fully off the credit card on the last possible day each month with cash from this account thus effectivly reducing the interest you pay be means of the 'free money' from the credit card.

Both do work, require discipline, and you do not need to pay some guru for setting up the systems imvolved.

Their website states that they do not use credit cards, or revolving credit facilities, or additional payments, or changing lenders, or paying more on the mortgage. You just pay the same amount as you are paying normally, and your loan magically gets paid off in half the time.

Basically, fairy dust. There's a warning by the ComCom against them too.

I would be fascinated to see how they think they can achieve that though. If you can get something on paper or in writing without committing, please post it here. Inquiring minds want to know.

[Damap]

From Commerce Commission
Alleged misleading representations as to the
benefit of financial advice that will supposedly
reduce mortgage payments.

Also googling them they are into some serious SEO stuff far more than a normal kiwi company. Doesn't mean anything per se but I would run Forrest, run if it were me.
We operate the RC and use credit cards strategy ourselves, it works a treat and is something you can just do yourself.

[Damap]

NOTE: Both companies named freedom express have been struck off in New Zealand also. Definitely be wary!!!
freehold express is still active though.

[Maccachic]

Talk to your bank Im sure they can draw up a plan for you

[Rosco]

NZ Home Loans have a good system to help normal people pay of their mortgage quicker. As someone posted above by paying more frequently and using a revolving credit account.

Otherwise BNZ total money can work in a similar way.

Ross

[Wiz]

NZ Home Loans are good for this product using the revolving credit strategy. We used them for a couple of years and it worked well, however their risk profile for further lending didn't match our own and so we went to The Cooperative in the end, who provide a similar service but for a slightly lower interest rate + fewer bells and whistles. I'd recommend them both for sure.

[Maccachic]

Total money works well for us esp when OH was self employed and had tax and ACC $$ in his accounts.

[spaceman]

As others have alluded.....you can do it yourself....without having to pay their fees.

If you think they're not disciplined enough to do it themselves....they're probably not disciplined enough to do it Freehold Express and they'd be out their fee.

The idea isn't a scam, it certainly works.

Cheers
Spaceman

[brokerman]

As others have alluded.....you can do it yourself....without having to pay their fees.

If you think they're not disciplined enough to do it themselves....they're probably not disciplined enough to do it Freehold Express and they'd be out their fee.

The idea isn't a scam, it certainly works.

Cheers
Spaceman

Totally agree, any Bank offers this facility its up to you to take advantage of it.

There are also quite a few free downloadable budgeting aids

Good luck

[Neongreen]

As others have alluded.....you can do it yourself....without having to pay their fees.

If you think they're not disciplined enough to do it themselves....they're probably not disciplined enough to do it Freehold Express and they'd be out their fee.

The idea isn't a scam, it certainly works.

Cheers
Spaceman

The idea of a revolving credit account and/or a credit card isn't a scam, indeed. It's a classic, useful combination.

However the idea of not using any of the above, keeping your mortgage payments the same, and not changing your lender or your interest rates or your repayment frequency, yet paying your mortgage off in half the time is probably BS. This is what Freehold Express claims to do.

[BigDreamer]

The idea of a revolving credit account and/or a credit card isn't a scam, indeed. It's a classic, useful combination.

However the idea of not using any of the above, keeping your mortgage payments the same, and not changing your lender or your interest rates or your repayment frequency, yet paying your mortgage off in half the time is probably BS. This is what Freehold Express claims to do.

Agreed with the above. However, I would swap the word 'probably' to definitely BS.