re-mortgage for 110K - are "One" accounts good?

MrMrMr

My current fixed deal end next month, we're thinking of moving anyway, so our new mortgage will require 110K approx, we were going to take it over 25 years (current left is 13 years)

I've read a little about these "One accounts", but are they any good? or only good if you have savings in them, and are going to overpay?

If we move I won't have any savings left, and we maybe able to pay a little over (if my figures are correct approx £660/month for 110K/25 years), maybe overpay £100/month.

Are these fixed One accounts? rate wise?, I think fixed maybe best idea of future proofing?

cheers

waveneygnome

The One Account is run by RBS.

It used to be a good mid-priced product with excellent service.......but that was before the recession hit.

Try googling 'offset mortgages' - because that is what the One Account really is.

From memory, the interest rate is 3.75%, and you would need 25% equity in your property. I don't think they offer a fixed rate - it is effectively a variable rate - and they can change it at their will. i.e. it does not necessarily have to track the Bank of England Base Rate. Try googling 'Virgin One Account Interest rate complaints' for problems this has caused other borrowers!

I moved from The One Account to First Direct, and pay 2.49%.....thats a saving of over £1300 per year for you on your £110k mortgage. First Direct do have a reputation for only picking 'good' borrowers - i.e. with good track records and no credit impairments. Having said that, they let me in!

I think First Direct do offer fixed rate offsets, but I am on a tracker rate that does track the Bank of England Base Rate.

First Directs service is way better than the One Account, and I would recommend them to anyone.

madeupname1

waveneygnome wrote: »

I think First Direct do offer fixed rate offsets, but I am on a tracker rate that does track the Bank of England Base Rate.

First Directs service is way better than the One Account, and I would recommend them to anyone.

I am looking at First Direct fixed rate so good to hear that they have a good service. However, there is a huge arrangement fee for the product I am looking at. Basically £2000 and a £365 valuation fee, non refundable.:eek: