Virgin The One Account linked to mortgage - any good ?

Bob_Bridges

Title says it all.
GF has flat valued at 150k and mortgage of 100k - currently on 3.59% via this bank account.
I think she can do better ( the mortgage - not me! ).
Please back me up on this...

Thanks, Bob

hillcats

Bob_Bridges wrote: »

I think she can do better ( the mortgage - not me! ).Thanks, Bob

PMSL....

Seriously, it depends on what rate the GF is currently on, and what rate will the mortgage revert to at the end of any special rate.

I guess it is an offset account (Similar to ours, with if.com) but with what type of mortgage attached, what is your LTV etc...

Thrugelmir

Depends on how the account is used. As to whether its beneficial or not.

Bob_Bridges

Thanks you two.

Looks like I'll have to do some research on the GF's bank account - could be a good test of the relationship !

Wish me luck,

Bob

waveneygnome

Bob,

The Virgin One account (now called One Account) is operated by Royal Bank of Scotland.

They have not been very transparent in setting interest rates in the past - if you search on this site you will find many complaints about them.

Essentially the One Account is a current account mortgage, and the current interest rates are between 3.65% and 3.75%.

There are far cheaper interest rates about from other providers, like First Direct 2.59%. Their products are called 'offset' mortgages - which act in a similar way (although not exactly) to the One Account.

(I have just moved from the One Account to First Direct because of the formers bad practice on interest rates, and saved myself 30% off my monthly mortgage bill)

The key question to ask your gf though I think is, does she need the flexibility of an offest/current account mortgage - if not, then there are even cheaper interest rate deals around for a 'normal repayment mortgages'.

Good luck with your decisions.