virgin one account

bells123

hiya

does anyone know anything about the virgin one account , my fixed rate mortgage is comming to an end soon, i am thinking about changing it a virgin one account but it sounds too good to be true?

kells

dimbo61

Hi bells123/kells
The main thing to remember with the virgin account is what is the interest rate that you are being charged on the outstanding balance ?
There are lots of posts about the virgin account

wymondham

Lots of posts on this, have a read of the link all the way through to get a good overall view of the account and how it works. Don't read too much into the calculator they use on the site as it assumes best case scenarios for everything. It used to be an expensive account, but not too much different these days from others with lots of benefits to managing your finances a different way if you are the right sort of person...

http://forums.moneysavingexpert.com/showthread.html?t=587535

Mattfoo

Be careful they increase their interest rates no matter what the BOE does.

BOE decrease rates by 0.25% - One Account leaves rates and does not decrease !
BOE keeps rates the same - One Account increase their rates by 0.25% !

I am now paying 0.5% more with One Account than what the BOE rates suggest. They do what they want to interest rates.

That said they have served me well until this recent nightmare, but you really do need significant savings to make a real difference to mortgage payment term.

Gorgeous_George

The calculators are, IMHO, misleading.

If you have a 'normal' current account balance, its effect on your mortgage is minimal.

If you have savings to offset, you could use any offset style mortgage deal with similar results as the oneaccount offers. It may be better to reduce the mortgage instead to benefit from better rates (due to improved LTV ratios).

If the calcualtor says you can pay the mortgage off early, why not take a mortgage over a shorter term?

The calculator doesn't always make it clear that at the end of the mortgage you have no savings. Any leftover current account cash needs to be left over EVERY month.

For financially astute borrowers, the oneaccount offers nothing that couldn't be had elsewhere. For others, it offers additional risk.

I don't like the Oneaccount.

GG