OneAccount

jack*tigger · 25 April 2006 at 10:19AM

So ... I've seen the adverts and thought I know I'll pop our numbers in their lovely web page and see what comes out.

Now I'm very good at heeding the advice "If it looks too good to be true it probably is" So...

The OneAccount page says that we can repay a £52k mortgage on a £180k house in 4.5 years rather than the 17 years that the C&G have us for !!!

So whats the catch ??? Do I have any savings left after the 4.5 years or are they swallowed up by the mortgage ???

The web page doesn't go into any of the nasty details so I was wondering if anyone out there could open the cupboard door and let the skeletons out ??

Thanks for any advice and help you can give.

Regards,
Sandie.

Joe_Bloggs · 25 April 2006 at 12:41PM

The one account shrinker demo seems to assume that any money left over in the current account is saved on top of an initial savings amount. Their term of the mortgage in the shrinker demo is when offset savings equal the amount owed on the mortgage. From this point on you pay no interest on the mortgage and have the capability to pay it off, using all of the offset savings . As savings approach the mortgage balance the actual interest rate is less and less important.
The comparison is a bit suspect as they compare a repayment mortgage at their own rubbish rate of 5.6% with their offset product. There is no comparison with the best available mortgage product and utilising tax free savings options. There are cheaper offset products from YBS (4.95%).

These are fantastic products if you can use you existing taxed savings and build upon them whilst making the mortgage repayments. We all aspire to be rich but often we don't end up being able to utilise the flexibility of these products. This means you pay more in interest and will struggle to save money that reduces the interest.

By turning the regular savings into overpayments on a conventional repayment mortgage (where allowed) you can also significantly shorten the mortgage term. Some cash ISAs pay more than competetive mortgage rates.
J_B.

beefster · 24 May 2006 at 9:35PM

I have literally just closed the door on a mortgage adviser recommended by more than one friend. Whole of the market and no fee's as recommended by Martin.

He took one look at our situation and our willingness to move to a flexible account style mortgage and recommended the one account and there would be no start up fee's at all?!.
I had done my own digging around and can see there are accounts with lower interest rates etc but these have starter fee's etc and "he says" that the oneaccount staff and administration is second to none.....?

We have a outstanding amount of £79000 and an ability to put £30000 (poss £40000 if i cash in my poorly performing ISA) into the pot and a further ability to over pay in the region of £150 pcm.

He is popping back to see us on Friday as I wanted time to think on the options. I currently ISA's that are at the max so think this is a good deal but what other options are there?? I would welcome opinions from similar account users and advisors please.
Ta for looking.
Me

MortgageMamma · 24 May 2006 at 10:02PM

Your advisor is correct the service from this lender is excellent ad I think its an excellent all round product. I probably would have recommended the same thing to you, they also have great customer retention deals. they give their existing customers the same deals as new ones so they could well be a long term lender for you, saving you even more money, as you only have a small mortgage and an application fee of say £699 every two years would have a big impact

Pinkyboy9029 · 26 May 2006 at 10:44PM

Just to say I've had a one account for about 3 years and I have found it to be excellent . It's really worked well for us. When you ever need to phone up for anything I've always found the advisors really helpful, and it all seems really straight forward. It might not suit everyone, but if you've got some savings , pay your wages in, and have some cash left at the end of the month it will work for you. You are also better to pay everything by credit card, then pay it off in full at the end of the month before your wages go in. That way your cash stays in the account for longer, therefore keeping your balance down. Good luck

beefster · 27 May 2006 at 10:24AM

Thanks people........ time to sign on the dotted line then.

OneAccount

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