Leaving the One Account - but to where?

System

A Base rate tracker offset mortgage with a rate of 3.49% !!

This is a great deal! I am currently a One Account customer, and have had enough of them. Furthermore, when I rang to find out about exit fees (there aren't any by the way , if you have been with them for more than five years), their customer retention guy was quite aggressive and almost rude, saying NO other company offered what One Account offer, but here it is:

First Direct (HSBC) Base rate Tracker offset. Borrow up to 80% LTV (on non new-build houses, 75 % if new-build).

You get three physical accounts, but the balance in the two credit accounts (current account plus saving account) always offsets the interest in the mortgage account. You can re-borrow from the mortgage facility at any time up to the agreed limit or 80% (75%). Same deal as Virign One, pay off by retirement etc.

RATES

Tracking at 1.5% above bank of England base rate

FEES

£599 arrangement fee, no booking fee. £99 drive-by valuation fee.

OFFERS

You get £100 cash back if you first open their online account (the mortgage sales advisor can tell you more) Also, if you take their premier account service which costs £7.50 per month for six months and then £9.50 for six months thereafter, you get another £100 cash back and it includes worldwide travel and mobile phone insurance which we want anyway. SO

Effective cost to switch: £399 PLUS £99 valuation!

I've already gone through the agreement over the phone, takes about 40 minutes. Paperwork following now.

I only found out about this by chance on Friday, and this morning it went on their website under new mortgage offers. I think this is a brilliant offer and clever of HSBC/First Direct to get in and pinch customers from us disgruntled One Account holders!

(By the way, I don't work for HSBC!)

:beer:

finster

Thanks for your post - looks like a good deal. However with my One Account rate now at 4.1% it's not looking like its worth the hassle. It would cost me £600 (I wouldn't take the premier account) to switch which would take me over 12 months to recoup the money (and of course, I'd have to pay interest on this £600 too).

Might be worth keeping an eye on though if OA start to go out of sync with the base rate again....

System

No problem, I was really keen to pass on the info. For me it's worth it, as I actually prefer the way the First Direct offset accounts work too, with the three physically seperate accounts working together.

Have One Account actually changed your rate already? Last time it took them a month and whenI looked earlier my rate was still at 5.1%.

:j

Browntoa

will be 4.1% on 31st Dec unless you are on a high LTV

System

Please see this thread for a continuation of the discussion on moving away from RBS One Account. Incidentally, RBS have now launched a new offset product, with £2500 fees to switch!!! MMm, bargain!!

Thread on switching:

http://forums.moneysavingexpert.com/showthread.html?t=1284533