One Account?

HappyMJ

Umski wrote: »

Agree with this - only reason I'm not changing is that the balance is close to zero so with fees etc, it isn't worth bothering to change at present. However, if I wanted to move house I would probably go First Direct as they offer much better rates and the account works in a similar way. Also bearing in mind the One Account/RBS rates debacle when the BoE rates were coming down a couple of years ago and the rate on the account wasn't. I can't see them holding back on increasing the rate when they start going up again :mad:

Neither can I. Also, can't see first direct approving me for a mortgage they won't let me have a current account so imagine a mortgage is unlikely to be approved. Anyway with a rate of 3.69% I'd hardly be saving anything.

Burridge60

One Account put their rate up when all the other Bank of England style tracker Offsets went down! but to be fair it is based on their own variable rate.
One Account is an RBS Group offering and might be of use to you if you are already their customer.

If you are with another Bank most now have this option. Search your Bank's website use the "search the website box" and enter "offset" that will tell you their terms for such an account and you can see whether you are likely to succeed.

Most Offset accounts need a decent sized equity or deposit ideally 20% in most cases and for the very best rates at least 40%. But watch the fees. I would view this more as a one off all my life mortgage than a series of ill advised two year fixed rates at £999 every two years in the 25 year term!

Some of the best are sadly gone from the new lending market and available only to their existing customers. Your friend has benefited from the drop in rates and this has meant they could overpay based on their previous payment without it pinching their budget. Might be different going forward as rates begin to rise and your payments have to go up.

There is an MSE thread somewhere about the optimum amount of cash you need to have offset for them to be valuable but your friends experience will be a better demonstration to you than any website (If they will show you).