The One Account

Denzel09uk

Hi peeps

What are your opinions on "the one account" where they offset any interest against your mortgage.

Has anybody got one and is it good to use.

Denzel09uk

LilacPixie

IMO there are better offset products on the market.. First direct being the first lender that springs to mind

dimbo61

I have an offset mortgage with YBS and have been very happy with the mortgage and the offset accounts! they offer.
YBS have a facility called "family and friends" whcih is very useful and building up your emergency savings in the offset account while also "saving interest" on your mortgage debt.
Not sure about the one account it all depends on the interest rate you pay.
Very good mortgage for self employed people

tuneless_nightingale

Hi. I have a One Account and the whole offset business really takes some getting your head around. I absolutely cannot help with questions about whether it's the best offset product on the market, or anything vaguely technical, but I can tell you how I find it to use:
They were very keen to offer me more than I needed. I think it was 5K that I could have sitting there available for 'emergencies', home improvements, that sort of thing. I took it but didn't spend it. If you give in to temptation easily, I would recommend not accepting that extra if it's offered. It's just too tempting and before you know it, you've added a whole load of cash to your mortgage and you don't really know what you've spent it on...
At the start, the idea of seeing your 'current account' balance in such a massive minus figure is awful. The temptation is to think, well I owe so much already, what difference is it going to make if I withdraw another couple of hundred quid? You have to get over this fast! Soon the satisfaction of seeing your debt reduce will kick in, but it was a strange concept for me in the beginning.
Read your statement every month! It's really easy to lose track of where you are on your payment plan if you don't check regularly. It's so different from having a current account and taking money out for your mortgage - if your balance doesn't dip below zero at the end of the month you've done well! The aim here is to leave cash in your account, which is difficult to fathom when your balance is shown in such a large negative figure. The statements are actually really informative and your aim is to increase how far you are 'ahead of your guide'. The further you are ahead, the quicker your mortgage will be paid off.
Keep your monthly wages in the account for as long as you can. I put everything on my credit card during the month and always pay it off in full at the end of each month. I am convinced it makes a difference. But always pay it off. The interest on the one account is less than 4%, it's probably around 20% on your card...
As your balance falls through the year, your 'facility' (the total amount you can borrow with no questions) stays the same. You can reduce this at the end of the year, but for 12 months it remains constant. In reality this means that at the end of the year, if you are not careful, you can end up owing exactly the same as you did at the start and you've paid off nothing. If you're the sort of person who thinks 'well, the cash is available, why not spend it?' then this is not the account for you. You have to be really ruthless with your spending.
If you can stick to your plan and even make 'overpayments' by spending less, then you really can get rid of your mortgage quicker. But if you're a 'I've-got-it-so-I'll-spend-it' type, then stay well away! If you are disciplined and can stay in control of your spending, it's a great way to reduce your mortgage fast. And if you do have a genuine emergency, you can borrow money cheaply, without having to re-apply to the bank or take out a loan.
That probably doesn't help, but good luck anyway!
Good luck with whatever you decide.

RosieTiger

It does take a specific mindset to get your head around seeing everything in one lump, but I'm sure you can alter the view. I never did when I had one.
What i would say though, is that for customer service they were excellent.

fillyfop

Hi,

I have a One Account mortgage and love it (well, as far as you can "love" a mortgage-ha ha)

If you can afford to overpay, it's an excellent product and the rates are pretty good.

I find the statements are really useful and break everything down for you. I also use the online banking site which is fantastic and really simple to use.

It is scary looking at a massive negative balance in your account, but they make it really easy for you to track.

In terms of comparisons though, I honestly don't know.

Good luck with your decision!

dimbo61

Look at the interest rate and compare to FD and YBS also consider a fixed rate deal as 5 year fixes are still very cheap