Advice required on offset mortgage

devildog

I for one, am with the One Account (been with them for about 5 years now) and I can honestly say I haven't had any problems with them and would def recommend. I am not aware of what problems others have had with them as I haven't needed to look(you tend to look when you have problems)

anskills

getmore4less wrote: »

You don't seem to understand mortgage basics with coments like "can i overpay the interest"

£110k over 10 years is £917pm at 0% so £600pm won't be enough to pay off the debt in 10y

On a repayment over 10 years at 2.45% it is £1035pm you need at lest that amount each month free after expences.


I hope you are not another victim of the one account calculator.

Edit : reread first post, you think you can do this in 8 years thats £1263pm @2.45%

i'm not claiming to be entirely proficient in the workings of mortgages, that's why i'm on here trying to learn. traditionally i've just taken the best rate i can get and paid it off, so this entirely new product and concept will understandably take me a while to get my head around. either way i don't think i can do this in 8 years, i have just used various calculators such as the one account one, which indicate this can be done, so yes perhaps i am a victim. ultimately though, i'm sceptical it can be done, hence reason again that i'm on here asking the questions and trying to do research.

thanks for the advice though, and i appreciate folk continuing to contribute to the thread so i can make an informed decision.

getmore4less

devildog wrote: »

I for one, am with the One Account (been with them for about 5 years now) and I can honestly say I haven't had any problems with them and would def recommend. I am not aware of what problems others have had with them as I haven't needed to look(you tend to look when you have problems)

Did you not notice they were failing to follow rate drops so ripping you off.

getmore4less

anskills wrote: »

i'm not claiming to be entirely proficient in the workings of mortgages, that's why i'm on here trying to learn. traditionally i've just taken the best rate i can get and paid it off, so this entirely new product and concept will understandably take me a while to get my head around. either way i don't think i can do this in 8 years, i have just used various calculators such as the one account one, which indicate this can be done, so yes perhaps i am a victim. ultimately though, i'm sceptical it can be done, hence reason again that i'm on here asking the questions and trying to do research.

thanks for the advice though, and i appreciate folk continuing to contribute to the thread so i can make an informed decision.

The one acount calculator will come out with the same numbers as the others if you fill in the details correctly, it is easy to get it wrong and then the one account looks like it can do something no other mortgage can.

If you do the numbers like for like of any offset against a regular mortgage the savngs are tiny/non existant/negative.

The main benifits are a line of credit, cash flow and flexability.

devildog

getmorefor less-since being with them hadn't really looked at mortgage rates tbh as perfectly happy with what we had and paying a hell of a lot less than we had been on our 'standard' mortgage. Have just taken a brief look at current rates and we are approx paying 1 % more (than the current deals) and tbh what we are paying monthly for mortgage is less than many would pay in a week for coffee!
Switching to One Account was best thing we had ever done and have no regrets

hillcats

We have had offset mortgages for years now - they are great if you have careful control over your money.
We had an offset mortgage initially with The Woolwich, but since 2007 we have moved it over to https://www.if.com
which is the best thing we done as I can say apart from one tiny dispute with IF they have been no problem at
all and I would certainly recommend them - sadly they don't offer current accounts or mortgages any longer.....

Desperate_Housewife_2-2

we paid our mortgage off using this account (see sig).

the key is to be organised with your money and manage it well. The way it fails for people is that they view the facility as cash to spend whereas the best way to view it is as a massive debt as it comes up on your balance as a huge overdraft, also you knowevery month how much your interest payment is.

It motivated us to pay off our mortgage but it was a long haul and we prioritised paying it off over everything else.

You may want to join one of the challeneges (pay off your mortgage in x years' which was great for us as it kept us focussed.

Some people 'poopoo' paying off the mortgage which is ok by me. I am so glad to be living rent free and me and OH work part time so we can spend more time with the kids.

Good luck

edit: just read some negative posts about the one account, we have this and have had no probs with it, they have always been good when you ring up. Also have kept the account as we have access to a huge amount of money at a very low rate if we need it in an emergency.

getmore4less

devildog wrote: »

getmorefor less-since being with them hadn't really looked at mortgage rates tbh as perfectly happy with what we had and paying a hell of a lot less than we had been on our 'standard' mortgage. Have just taken a brief look at current rates and we are approx paying 1 % more (than the current deals) and tbh what we are paying monthly for mortgage is less than many would pay in a week for coffee!
Switching to One Account was best thing we had ever done and have no regrets

Current rates are in the 2%-2.5% so you are paying 40%-50% premium for your loyalty to the one account.

The rates on deals that were around at the same time are likely now in the 1.5-2% range(mine is 1.45%) so your premium is probably 50%-100%.

There was a long thread starting back in 2008
https://forums.moneysavingexpert.com/discussion/859611

devildog

Totally appreciate what you are saying but as we were paying interest on a 'full' mortgage the repayments were obviously considerably higher and an endowment mortgage at that (don't need to say anymore ) Looked at various options and went with off set.

Not saying One Account(or offset acct) is right for everyone but for us it allowed us to repay the mortgage with flexibility and borrow against it as/when we needed to. I know you can overpay on some mortgages up to a certain percentage etc but for the ease of use/no hassle that extra 1 % or so really isn't an issue on the minmal amount now outstanding. Granted if you have a large(er) mortgage then every penny does count re interest rates.
As Desperate Housewife says-no problems with them,access to money at low rate as/when need and I have always found their customer service to be first class!

WestonDave

To answer a question on the FD accounts - although they are set up as interest only, FD are happy to calculate repayment equivalent figures for you. So if they tell you that its going to be £700 per month to repay in 20 years, you just set that as your standing order to the mortgage account. You can always set it higher, or lower (provided you cover the interest charged each month).