the one account

My experience with the OneAccount is very good, it suited my circumstances to the dot when I opened the account in 2000. My mortage (which was in excess of £60K) was to be paid back by 2014, but circumstances allowed me to pay it all back this year (including an huge 'remortgage', larger than the initial sum, I had taken out last year on my OneAccount).

When I took out the account, I didn't have any savings to offset but I was hugely attracted by the total flexibility, and no charges - other than interest, naturally - for over/underpayment. The other thing I wanted was a repayment mortgage because I'd had enough of the worries over whether my endowment mortgage would or would not pay enough to settle my mortgage in the end. Adding the 'remortgage' was a complete doddle - I just called them and asked for my credit line ('facility') to be increased, and next day it was all done. I could do this without a chargeable re-valuation because my property value covered 105% of the sum I wanted to borrow. If it had been less, I probably would have had to pay for a re-valuation and the whole process would have taken slightly longer.

The process of transferring my mortgage to the OneAccount was totally transparent to me - they did it all once I had signed their papers and had paid for the initial valuation (using their recommended surveyor). I can't remember the exact sum I paid for the transfer and valuation - something in the region of £200, I think but not sure. They also transferred all my Direct Debits and Standing Orders, and closed my old Current Account (with NatWest) for me. To me, this was brilliant because I just wouldn't have known where to start doing this, and also didn't have the time to do it.

Although my mortgage is now paid off, I am keeping my OneAccount as a 'safety-cushion' in case I unexpectedly need a larger sum of money. I can instantly draw on this whilst I have the account.

What I don't do is keep any money to speak of in the OneAccount because it pays a paltry .75% for positive balances. Anything coming in is immediately transferred into better paying accounts.

One thing to be clear about is how the OneAccount handles credit card payments (for the card that comes with the account) - your bills are settled once a week (Wednesdays, I think). So it might be a better idea to have a non-OneAccount credit card(s) and settle it by DD from the OneAccount once a month.
Also, there's a £3.5K limit on the card - this is in effect a weekly limit because of the weekly settlement so may be no problem but it's good to be aware.

I wouldn't consider the web facilities for the OneAccount leading edge, but they are ok, and you get meaningful monthly paper statements in the post. The customer service centre (0845 number) is first rate, I have only ever found the Egg customer service coming close to it.

BTW - you will also need a life insurance that covers your loan. I think they will try to sell you a Virgin life insurance but if you already got one, or find a better one elsewhere, they should accept this without problems (I just told them I had a company life insurance which covered the sum, they didn't even want to see proof for it).

If I had to make a decision again today, I'd compare the OneAccount with other offset mortgage accounts because there are a few more of them about now. However, I reckon it probably swings in roundabouts, they are likely to all offer the very similar terms and interest rates.

As Al Mac already mentioned, with the OneAccount you can get £125 if someone (Al or me or someone you know) refers you (the referrer also gets £125). Don't know whether you can get this with other offsets as well, worth checking.

EDITED: Forgot to mention, they are excellent on interest rate changes. You usually get any BOE reductions backdated to the day the rate was announced. Interest rate increases are also effective from the announcement date, though. Not sure there are many others who offer such a fair policy on rate changes.