one account

pappag

Is the one account any good, tells me I could pay off my mortgage 16 years early. Sounds all too good to be true, whats the down side?

rinkydinkpanther

The interest rate is not very competitive, and you do need to be a financially disciplined type of person. I love mine though, and am on track to be mortgage free in the next couple of years. The way your balance shows as overdrawn by your complete liability has totally changed our outlook on our mortgage - it's very easy to pretend that a mortgage isn't debt, but it is. Every penny I spend I now think about whether I want what I'm buying more than I want to be mortgage free...usually I don't and that money stays put.

koexelek

Good if you are going to use it's flexibility and benefits.
If you aren't, better to go for something with a lower interest rate

Cat695

koexelek wrote: »

Good if you are going to use it's flexibility and benefits.
If you aren't, better to go for something with a lower interest rate

So if i know i'm coming into a large amount of cash in a few years the one account would be better??

herbiesjp

Depends what you want to do with that money.

If you want to clear/reduce the mortgage the mortgage - you can have any mortgage (and either make overpayments or wait until the penalties expire)

If you want to pay the money in, in order to reduce the monthly mortgage cost or reduce the term of the mortgage then you could look at other offset or flexible deals

Cat695

herbiesjp wrote: »

Depends what you want to do with that money.

If you want to clear/reduce the mortgage the mortgage - you can have any mortgage (and either make overpayments or wait until the penalties expire)

If you want to pay the money in, in order to reduce the monthly mortgage cost or reduce the term of the mortgage then you could look at other offset or flexible deals

I guess i'm a big believer in paying your mortgage off asap.....I just like the sound of actually owning my house rather than paying money every month

I just like the idea of being mortgage FREE:D

herbiesjp

Well if you would clear the mortgage - then any mortgage will do.

Take a low rate now as opposed to one account, and when the deal expires, and if the money has come in, clear the mortgage off and be debt free!

Locoblade

The One Account isn't anything magical, its just another offset mortgage product so don't be drawn in by the figures generated by the calculator etc.

Unless you particularly like the way the One Account works with a single current account showing a huge overdraft (your mortgage), you may as well pick an offset that offers the same flexibility at the lowest rate. For example the First Direct offsets are nearly 1% lower rate than the One Account, but you can overpay in just the same way and pay in lump sums etc without penalty, plus you'll be saving significantly more in interest payments because of the lower interest rate.

sujman

Locoblade wrote: »

The One Account isn't anything magical, its just another offset mortgage product so don't be drawn in by the figures generated by the calculator etc.

Unless you particularly like the way the One Account works with a single current account showing a huge overdraft (your mortgage), you may as well pick an offset that offers the same flexibility at the lowest rate. For example the First Direct offsets are nearly 1% lower rate than the One Account, but you can overpay in just the same way and pay in lump sums etc without penalty, plus you'll be saving significantly more in interest payments because of the lower interest rate.

Does the lower interest rate counter-act the fact that FD charge £1499 arrangement fee where as One Account charge in the region of £250?

Locoblade

FD charge NO arrangement (or any other) fee on their lifetime tracker at +0.79% which is the one that seems most comparable to the One Account. One Account is currently 6.7% variable, the FD product is 5.79%, hence my comment about it being nearly 1% lower.

The £1499 arrangement fee is on the 2 year fix at 5.19% (previously 4.99%), you'd need a fairly big mortgage to make that fee worthwhile though Id think when comparing against FDs other products, but Im sure it would still be cheaper than the One Account in a lot of cases.

albionrovers

Talking of One Accounts, I am now only paying interest on 10K of my original 90K facility.
The account is a joint one, my wife and I.

Are we only secure for the 1st 70K of the 80K difference?

If so, should I move any amount > 70K elsewhere?

Help appreciated.