The one account

gaetss

I'm about to remortgage, and I am considering the one account. The interest rate is quite high (6.45%). I still want to keep my current credit card to have the 60 days free purchase, and also still want to put money in my ISA. How can I do to know if this mortgage is worthwile?

PBA

The one account is only worthwhite if you habitually keep very large amounts of cash in your current account. You can get an ordinary offset mortgage (ie mortgage offset against savings) at .49% above base, ie 5.74% right now, which would likely be a better deal.

Mr_helpful

As above the one acount works better with savings but why not go for the flexible mortgage option ( you get free legals and valuation on remortgage) and use the free upgrade to the full one account at a later date.

Rick62

OneAccount is expensive. Why not look at a good Offset, such as Intelligent Finance, better rates and, in my view, a better account structure.

gaetss

For the offset mortgage, do we need to have the money in the same bank?

Mr_helpful

yes you do basicaly offsetting works by the lenders computer scanning over all you have with them and charging interest on the true balance ie if you have 100K mortgage but 10K in savings on a particular day the bank charges interest on 90K for that day. The one account works slightly differently in as much as its all in the same account so your savings / salary etc reduces the balance of mortgage loans and credit cards.
Hope this helps

gaetss

Thank you for the advices, we looked much more carefully the offset account, and it looks safer ans nearly as quick to repay the mortgage.

yus786

The one Account works for some maybe not for others. I have a one account as i have a substantial amount of money to offset - so it works great for me.

I did think about moving a few months ago and finally sat down with a broker who advised me to stay. (That's a first eh - a broker that actually recommended the One Account !!!)

All the best.

wymondham

we are about to start with the One Account, I know it's rate are higher than others but we have a small mortgage - I love the flexibility it offers - could'nt find anything else around like it.....

madhouseof4

We have had a One Account for 4 years now and it has been invaluable to us. My husband's job has quite variable pay due to being on commission so with a normal current account / overdraft / mortgage combination we could easily have incurred lots of charges and gotten into difficulty.

We find it helps smooth everything out - so when we had a really bad year financially due to unforseen circumstances ( husbands job went downhill and I had to quit work - hence joining the site ) last year we had the equity to fall back on. Now my Husband has a decent job again we are back on track but he's still paid on commission so pay can vary by up to £600 a month.

I agree it's not for everyone but in our circumstances it suits us really well. We have super-balanced-transferred 8k onto interest free cards to save some interest and that amount is gradually going down - now 5.5k shrinking. You need to be disciplined as it's easy to fritter away your equity if you are that type so I wouldn't recommend it to everyone, but we never pay any bank charges and have alot of flexibility.

Mr_helpful

one thing that hasnt been mentioned is the really good customer service from the one account