One Account Advice

pollyanna24

What is the best way to figure out if this would be the best way forward to go? I just had a look at the interest rates and 6.95% is more than what I would pay on a fixed rate at the moment, however I know the idea is about off-setting (is that right)?

I am quite strict with money, not that I know an awful lot about the different products out there, but that we stick to our means and do try and save money each month (at the moment we have about £5K in savings). This is likely to change when I have kids, maybe in a year or so.

wymondham

AndyWallace wrote: »

A common misconception is that people are led to believe they retain their savings, which of course isn't true.

Your savings are available until you close your account - as long as your one account is running you still have access - think of your savings as just a big overpayment - just to clear things up a bit...

AndyWallace

wymondham wrote: »

Your savings are available until you close your account - as long as your one account is running you still have access - think of your savings as just a big overpayment - just to clear things up a bit...

Yes, clarification needed and much appreciated. The savings are available at all times but the online calculators that state you can pay your mortgage off 4 years and 6 months early don't actually state that to do this requires you to forfeit the amount you've built up.

Ta.

Gorgeous_George

If the OneAccount calculator says you could pay your mortgage off within 15 years, then look for a 15 year mortgage with the lowest IR/costs. It doesn't need to be a OneAccount although you may wish to consider an off-set mortgage so that your savings can 'earn' interest at your mortgage rate (and effectively tax free).



GG

wymondham

AndyWallace wrote: »

Yes, clarification needed and much appreciated. The savings are available at all times but the online calculators that state you can pay your mortgage off 4 years and 6 months early don't actually state that to do this requires you to forfeit the amount you've built up.

Ta.

True, I would like to think that people would see how they are paying it off early and not think they have their cake and eat it. It's not a bad idea to keep the one account running if you pay it off early (ie go into credit) - the interest is still better than most high street banks plus you can get at it if you need it (might not be a great idea for some i can see though!!)

kenshaz