The one account, any good?

russjacks

My fixed rate morgage finishes in Aug and again i have been looking into the one account.
Problem is i dont know anyone who has it to ask if its ok or not. the more i read about it the better it all seems. i am quite good with my money don't spend a lot on crap i don't need and try to keep my outgoings to a min. i have credit cards but don't really use them so i know i can resist temtation.
Thing is, it seems like this is a oppertunity to leave a bit of money in my account each month that will come off my morgage, bringing down my years of repayments saving me money on the intrest and if i pay it off early no charges for early repayment. The intrest rate they are charging at the moment is 3.75% it also sounds quite good.
Am i missing something, it all sounds really good and gives you a good oppertunity to pay extra off your morgage.
What if any are the pitfalls with this account?
Has anyone got one and thinks its ok?

Many thanks.

luckyfool

Do a search for One Account on the forums. Their rates are variable and do not track base rate, and they are not flavour of the month. With a rate of 3.25% over base rate you can get much better elsewhere, even for a fully featured current account mortgage. e.g. 2.89% term tracker springs to mind with a big enough deposit.

Speak to a good broker.

Gorgeous_George

For me, the interest rate is king. Borrow as cheaply as possible and save at the highest available rates.

[/simples]

GG

getmore4less

russjacks wrote: »

My fixed rate morgage finishes in Aug and again i have been looking into the one account.
Problem is i dont know anyone who has it to ask if its ok or not. the more i read about it the better it all seems. i am quite good with my money don't spend a lot on crap i don't need and try to keep my outgoings to a min. i have credit cards but don't really use them so i know i can resist temtation.
Thing is, it seems like this is a oppertunity to leave a bit of money in my account each month that will come off my morgage, bringing down my years of repayments saving me money on the intrest and if i pay it off early no charges for early repayment. The intrest rate they are charging at the moment is 3.75% it also sounds quite good.
Am i missing something, it all sounds really good and gives you a good oppertunity to pay extra off your morgage.
What if any are the pitfalls with this account?
Has anyone got one and thinks its ok?

Many thanks.

Where are you reading this?

How big is a bit of money, most mortgages allow some overpayments.

What's your LTV and salary multiple

russjacks

getmore4less wrote: »

Where are you reading this?

How big is a bit of money, most mortgages allow some overpayments.

What's your LTV and salary multiple

I've read their web site and it all seems to make sence.

I think we could leave about £200.00 a month in there.
Sorry LTV ?

waveneygnome

Hi russjacks,

As others have stated. Do a search on this forum for 'one account interest rate'.

I have had an account with them for over 12 yrs...and for 10 of those yrs they were great, but for the last 2 yrs not so great.

The big issue is the interest rate policy...it is not a tracker.....it is a variable rate that they can (and do) change at their will (i.e independent of Bank of England base rate changes).

As also mentioned, most mortgages will allow overpayments (paying a bit extra in each month), and it is this that will really 'shrink' your mortgage over time.

As far as I am aware, the One Account will now only accpet LTV of 75% or less. If this is your case, then First Direct have a far better, open, honest interest rate policy and a cheaper rate than the One Account.

Hope this helps.
WG

getmore4less

russjacks wrote: »

I've read their web site and it all seems to make sence.

I think we could leave about £200.00 a month in there.
Sorry LTV ?

What aspect seems to make sence over any other mortgage with a £200pm overpayment?

( I ask to try and understand why you think this could be better than other options, they must be doing something to make you think this)


LTV is Loan To Value one of the terms when dealing with mortgages.

moonboy

The one account is good for people who have decent disposable income and will not be tempted to use this account to go bezerk! Many people abuse this account due lack of understanding. Ideal for the high earning spend thrift.

getmore4less

Moonboy wrote: »

The one account is good for people who have decent disposable income and will not be tempted to use this account to go bezerk! Many people abuse this account due lack of understanding. Ideal for the high earning spend thrift.

There are better products than the one account.

Wutang_2

Is it anything to do with The One Show?

Thrugelmir

Consider a mortgage product with an offset account facility.

This way the interest on your savings is maximised whilst allowing you the access to the money if the need arises.