the One account

worto03

Hi,

I'm just about to come to the end of my 2 years fixed rate mortgage & have started to look around for something much more flexible.

I'm currently with the A&L but can only overpay once a year, my GF has almost paid off her debts so will soon be joining me with morgage repayments.

Is there anything I should be aware of when considering the one account as it seems perfect for me. The only downside seems to be if you arn't very good with your money (a problem I grew out of luckily!)

My property is worth about £120000 & I owe about £96000 still over 28 more years. I'd like to see 28 years come down to below 10 once me & the GF are contributing.

I assume you pay a higher interest rate for all this lovely offsetting & flexibility - how much in savings & overpayments should I be making to make this type of mortgage worthwhile?

Any advice or things to look out for would be welcome,
Cheers,
worto.

Gorgeous_George

It's important top select the right mortgage and I doubt that the One Account is best for anybody. I have a tracker with Britannia at Base Rate +0.74%. It comes with a savings account attached and any interest 'earned' is paid off the mortgage. You may be better off choosing a mortgage with a 15 year term.



GG

Coupon-mad

Don't forget to compare the One Account with other lenders, AFAIK the One Account is just an Offset mortgage facility, something which is offered by many lenders.

We have an offset mortgage with a Bank and at the time, more than a year ago, we got a very competitive fixed rate for 5 years. So you don't have to pay more in interest, although there was an arrangement fee (can't recall how much but it wasn't peanuts) so to make an informed decision you would have to ask lenders about up front costs too.

I like the fact we could pay in a fair amount we inherited but which we had earmarked for work on the house....the flexibility of an Offset mortgage means we can get at the money straight away when we want to but in the meantime we pay less each month in mortgage payments.