One Acount Mortgages

jamesd

kalfy1, regarding the claim that "people who only want to pay their mortgage off in the quickest way possible, and have been able to do so with the One account and not been penalised for doing so. IF THIS IS WHAT YOU ARE AFTER, THEN IT IS ONE OF THE BEST."

Please calculate the One Account first year payments (not at the one year discounted rate) for an 87,000 repayment mortgage with 7000 in savings to go toward the mortgage and compare it to say the Woolwich 80% lifetime tracker. You can find the Woolwich calculations at Woolwich example: how to lose money by offsetting. Feel free to calculate the total mortgage cost and duration for both if you prefer.

Then please try to come up with ANY situation where the One Account is cheaper than the Woolwich offset product in that other post. The only requirement: any money that you use to offset the One Account also is used in the offset account of the Woolwich - no taking money off the One Account mortgage and not taking it off the competition as well. If your calculations go to the time when the offset amount exceeds the outstanding debt, place the Woolwich funds in the ICICI savings account at 5.15% gross for comparison purposes. This challenge is open to anyone at work who wants to try it.

Once you have done this, please let me know whether you still want to claim that the One Account is one of the best choices for someone with the primary objective of paying their mortgage off in the quickest way possible.

That is: I'm claiming that the One Account is one of the WORST prime rate ways to pay of your mortgage quickly and asking you to back your claim up with some numbers that support it.

That said, it's a nice product that I really like the look of. Just a shame about the very high price you pay for that in a longer mortgage and higher interest payments over the longer term, compared to competitive offset or flexible tracker products.