Surprise Surprise!

maf20

Surprise, surprise, I want to save some money!

We have an 82k mortgage, take home just over 3k a month, have high outgoings due to private nursery fees, have 2k saved and regularly save 100 a month.

Our mortgage is around 550 a month with HSBC on their variable tracker.

Is the one account the way forward or something else?

Can anyone advise?

Joe_Bloggs

@maf20
You do not say:
The interest rate you are paying.
The remaining period of any discount and what the rate will change to.
The remaining term and would you wish to change the term.

I don't think you have enough savings to benefit from The One Account. What is more disturbing is why so many people in similar situations think they can. I suspect it is the promise of financial freedom. There is a price to pay when your savings level is far below what you owe on the mortgage. Perhaps £700 per year on £82K. The less the capital owed and the more your savings then offset products become more competetive.
J_B.

MortgageMamma

You might be better with a flexible mortgage, where you can overpay and borrow back the money at a later date if yuo need to. Your savings are not enough to offset your mortgage sucessfully. before you move you need to consider if you are still tied into your existing mortgage deal, and if not, what your existing lender will offer you, then instruct a whole of market broker to see if they can beat that, taking into account any posisble switching fee's.

maf20

Many thanks for the assistance guys.

Currently paying 5.5% no tie ins, around 21 years to go! I thought that by paying 3k minimum in per month would help with the one account and also by paying 100 pound per month into savings. Is that really not enough to go with? We have high outgoings for the next 1-2 years due to private nursery fees. But for now, what would you advise? We just want to be a little smarter and save a few quid rather than swell the fat cats pocket!

Joe_Bloggs

How much equity do you have in the property ? A lower loan to value percentage could get you the best rates from any lender. If your credit rating is good then you have the pick of the field.
If you are still keen on offset then how about this.
J_B

maf20

Hi Joe

Thanks again for the advice. House value is around 120 000. I guess the deall we're looking for is short-medium term. Would rather lower monthly outgoings now (and always obviously!), but if it meant increasing them slightly to put us in a better position in 5years+ then we'd consider.

Credit rating is tip top by the way