The One Account - Yes or No?

MrPea

Hello!

We're currently looking to move our mortgage as we're moving house and have to pay it off in full, then take out another mortgage because of how the house sale is going - but that's not important.

My question is, would we be totally insane to go with the One Account? It seems like quite a good idea, and the calculators seem to suggest that I can pay off my mortgage in about a third of the time, which seems quite attractive seeing as how much money it would save us!

The interest rate has also just dropped to 4.2% which seems quite good too.

Has anyone got an opinion on this?
Is it sensible to move ISA money into the "One Account"? (only currently £3000 in the ISA).

Thanks! Would love to hear from everyone!!

P

musicegbdf

suggest you read some of the posts on this forum about the OA and how people are very angry at RBS and leaving them. I for one am about to go to the Financial Ombudsman about their behavour.
Try a search

Umski

Hi MrPea, my first post in this section - have been keeping a close eye on the OA thread as I am a customer too. I am with all the others in that RBS have publicly lied about the rate cuts etc so I'm not too impressed :mad:

However, I am pleased that the rate has fallen from 6.45% when I re-mortgaged a couple of years ago. At the time, I knew that the rate was higher as you pay for the flexibility, but I am offsetting so much now that the difference makes it worthwhile - put another way, I remortgaged for 23yrs and am currently set to pay off in the next 10 - that is a huge chunk in interest saved:j Plus now that rates are down, I am putting all the saved interest straight back into the capital payments in the virtual mortgage :T

Your answer depends on your circumstances - if you are saving more than you spend and want to pay off the balance as soon as possible, then go for it, provided you don't go crazy and buy a 50k car or something on your Switch card But do be aware as most of us are that the OA isn't a tracker and if RBS wants to screw you, it can sadly :mad:

With regards to your ISA, it's very simple - if the ISA rate is less than the mortgage rate then it's not doing as much work for you so it should go into the OA. As a similar example, I'm juggling some 0% credit cards - I came to the end of a deal so did a balance transfer to a new 0% card which cost me 3% on the card (e.g. £180 on 6k), however if I'd paid it off instead, the OA rate was at 6.7% at the time it would have cost me £402 over the same 12mth 0% period that I got on the card. I am in a similar position again but this time with a 16mth 0% deal with 2.98% interest. Like-for-like over 16mths, the real interest rate would be 2.24% which is almost half the OA rate so it makes sense to leave the cash in the OA :beer:

That's just my opinion though - I'm sure others might have different thoughts

MrPea

Thanks for that. I've been looking at it some more and I think I'm going to give it a go. As the man said on the phone, there are no arrangement fees, and no early repayment fees, so if it doesn't work out, or the interest rate gets massively increased, then I can just move it to somewhere else.

Where's the other thread? I didn't realise there was a problem with RBS.

spence

Mr Pea my friend,

STOP NOW!!

I am a one account customer and I would urge you to look up First Direct if you fancy an off-setter. In simple terms:-


Off-set = Good

One Account = Bad

I have no vested interest with anybody but I'm off, along with many others.

Good luck with whatever you go for friend.

The other thread is on the front page.

mstopham

I would be inclined to look at First Direct as well. The do have an arrangement fee and an exit fee but offer a lower % tracker and SVR. Also the feedback appears to be good on their practices and customer service.

But compare the 2 and do the sums see which would be better in your planned scenario.

Cat695

mstopham wrote: »

I would be inclined to look at First Direct as well. The do have an arrangement fee and an exit fee but offer a lower % tracker and SVR. Also the feedback appears to be good on their practices and customer service.

But compare the 2 and do the sums see which would be better in your planned scenario.

I can vouch for their customer services.....they have been excellent since I've been with FD