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The "One Account".....any good???
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George&Ade
Posts: 45 Forumite
Hi.We currently owe Halifax building society £20,000 on our mortgage.
We are thinking of moving and would require an extra £105,000.
Would the "One Account" be a good option for us and does anyone have any previous experience with them please?
We are thinking of moving and would require an extra £105,000.
Would the "One Account" be a good option for us and does anyone have any previous experience with them please?
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Hi, I am currently remorgaging to leave my oneaccount. Whilst I'm sure it can work for lots of people you have to be disciplined. I had the account 5 years and my mortgage is the same has not gone down as you can get away with only paying interest and with three teenagers two at uni the monies always got diverted. I wish I had found this site before as I have wasted a fortune! The one account did not work for me but if you are disciplined and do not live hand to mouth I'm sure it can work!!0
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George & Ade,
If you want a flexible mortgage, think you will be able to build up savings or get irregular bonuses to pay off your mortgage then an offset mortgage is possibly a good thing for you.
However, the one account is one of the least competitive!
Suggest you have a look at First Directs offset or Openplan from Woolwich or Barclays.
Several of the building societies have offsets too.
You can often still have a fixed mortgage deal too if you are worried about interest rates rising further.
Other advantages.... you won't pay tax on savings. Any money in your current account is keeping the interest on your mortgage down etc etc.
As Sam says though, because you are not being forced to repay your mortgage each month, for some it can discourage saving.
If you are fairly disciplined with money though, it can work really well.
Good luck.
R.Smile
, it makes people wonder what you have been up to.0 -
Been on the One Account just over 2 months now & it's working very well for us.
You need to have lots of savings or have a lot of money travelling through your account each month to make it work.
I've had other people say to me that they had an offset mortgage & it was rubbish. I asked if they had any savings - "no" was the answer!!!
It works particulary well if you are in the 40% tax band because you don't pay tax on your savings.0 -
IF have a similar account...........depends on if you will have a lot in savings or not I think. Sometimes a flexible mortgage can work just as well - we have a fully flexible mortgage and simply make overpayments as and when we can - it's nice to see the mortgage actually coming down - they also keep the overpayments in a separate account so we can get the money back if we needed to.0
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With the oneaccount we have reduced our payments by over £100 within the first 2 months - ok we've put quite a lot a cash into the account but a lot of mortgages restrict you putting in cash.0
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Hey....thanks for all of the advice...:T0
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