Oneaccount

rjstorr

I currently have a fixed rate mortgage with halifax of 4.19% with a 2% penalty if I was to cancel it now. The amount would be approx £2,000. I am looking at transferring to a oneaccount which has stated my mortgage would be paid of within 16 years instead of the 24 year term with halifax. how good is the one account and is it worth moving my mortgage now or waiting until sept 07?

Rick62

OneAccount is generally not very good value, their rates are between about 6.1% and 6.9%, well above your 4.19% (and variable rather than fixed).

Your current mortgage is a great rate, stay with it, make limited overpayments if you can and make sure any savings are getting a good rate of interest.

OneAccount uses very misleading assumptions and are not comparing like with like. On any mortgage you will reduce the tyerm if you make overpayments and if you increase those overpayments each year.

MarkyMarkD

As Rick62 states, offset accounts use completely unfair assumptions in comparing their benefits with standard discounted or fixed rate mortgages. You need to compare an offset mortgage (like the One account) with the equivalent discounted/fixed mortgage if you made the same level of overpayments. And then the alternative will normally be better value.

The only exception is where you have huge amounts in savings compared to the size of your mortgage. There is a calculator on this site (in the sticky posts) which you can use to calculate whether offset works for you.

giger

ditto what has been said. I got very sucked in by the one account and was very tempted until i saw the error of my ways!

For instance, when you add your savings to the account and it gives you the illustration off how your term could be reduced, that illustration assumes that savings will pay of part of your mortgage, not just save you interest on that amount (i.e you never get the money back). They do not make this very clear and I think it is very misleading.

wymondham

giger wrote:

ditto what has been said. I got very sucked in by the one account and was very tempted until i saw the error of my ways!

For instance, when you add your savings to the account and it gives you the illustration off how your term could be reduced, that illustration assumes that savings will pay of part of your mortgage, not just save you interest on that amount (i.e you never get the money back). They do not make this very clear and I think it is very misleading.

it does go to pay off the mortgage... and does'nt! ... you can always have access up to your set limit (usually what you borrowed).. you don't ever lose access to the money. I've been toying with this account for ages and it has good and bad points, but if you have a high savings to mortgage ratio it does work..

Michael_Nottingham

I've got a One Account, they are definately not the cheapest, though they do often offer introductory discounts.

Also if you are on their SVR and have been for a while phone up telling them you are thinking of moving and see what they offer - I just got 0.50% off with no fees or tie ins.

Their Customer Service is superb (generally straight through - on and off very quick and UK staff) I also find their flexibility is very useful.

Depends what you are looking for - given the extra cost, you have to use the flexibility (I've been using the offset with my 0% credit cards to save £4k pa)

steviebilbo

I just called the One Account having read your comments and I told them I was thinking of switching and they were not prepared to offer me any discount but did say I could save 0.5% by switching to their flexible mortgage but this in turn would involve moving my banking elsewhere... so much for brilliant customer service (on this occasion at least)