The One Account?

wymondham

"We are 1st time buyers with a deposit of £100,000 (equity from parent's 2nd property), husband is self employed, last years profit £26,000, I am on £27,770 gross, my income goes up the scale every Sept gaining £1,500 usually. Found a house on for £199,999 which is beautiful so would be looking at mortgage of £95,000 (hoping to have an offer accepted). Britannia have a fixed rate at 6.34% for 5 or 10 years. Thanks"

nice position to be in!
if you're in the 0-50% LTV then the One Account rate is 6.35%, so not much in it - although it is variable.... This account is not as expensive as it used to be as everything has got more expensive and caught up!

wymondham

smokey77 wrote: »

From the other thread, I am wondering if it is too risky as my husbands income is variable, sometimes he may not have work for a month, then if he does work he may not be paid for 4-6 weeks after the invoices are put in.

The One Account works well in these circumstances as you don't have a regular mortgage payment as such - it's whatever you don't spend each month, so it lends itself to variable payment cycles..

Hopefully having read through this thread you'll get an idea as to how this account works..

smokey77

I know, we are v v fortunate to be able to hae such a huge deposit. Do you think the account is suitable for someone who is self employed because when he's working it's great but when he's not it can be a bit hairy!?

Our outgoings are roughly £2,100 after all bills, loan, cards, shopping, petrol (basically all outgoings, have been keeping a spending diary for the last 6 months) which leaves us around £1,000 on a combined income for mortgage payment and insurances

smokey77

Thanks, you've been very helpful. I think I'll call them tomorrow to have a chat. Do they stipulate that you have to pay a minimum to the mortgage?

Do you have a one account? If so does it work well for you?

wymondham

smokey77 wrote: »

I know, we are v v fortunate to be able to hae such a huge deposit. Do you think the account is suitable for someone who is self employed because when he's working it's great but when he's not it can be a bit hairy!?

Our outgoings are roughly £2,100 after all bills, loan, cards, shopping, petrol (basically all outgoings, have been keeping a spending diary for the last 6 months) which leaves us around £1,000 on a combined income for mortgage payment and insurances

whatever is left over at the end of the month becomes your mortgage payment, so if you have £1,000 left at the end of one month, this is what will come off the balance, if it's £50 on another this is the payment then - just as long as you get to zero balance after your agreed term then it's up to you how you do it.

wymondham

smokey77 wrote: »

Thanks, you've been very helpful. I think I'll call them tomorrow to have a chat. Do they stipulate that you have to pay a minimum to the mortgage?

Do you have a one account? If so does it work well for you?

I do have a One Account and it worked well for me - mortgage now cleared. There is no minimum monthly payment just as stated in last post..

It is important that you are disciplined and handle your finances well to use an account like this...

smokey77

Great, thank you very much. Will have a good read and give them a ring tomorrow. Have an appointment with Britannia on Weds aswell so will see what they have to offer aswell, I know we can overpay by £499 a month with them but the monthly payment will be a fixed one of around £600.

wymondham

smokey77 wrote: »

Great, thank you very much. Will have a good read and give them a ring tomorrow. Have an appointment with Britannia on Weds aswell so will see what they have to offer aswell, I know we can overpay by £499 a month with them but the monthly payment will be a fixed one of around £600.

excellent, good luck with your decision!

teabelly

If you have a 100k deposit on a 200k house then I don't think the one account will give a monkey's chuff about whether your husband has variable income Do set your facility slightly higher than the loan amount (eg +10k) to allow room for late payments from customers or unexpected bills. You will be charged a slightly higher rate but as you pay down the mortgage you can move the facility down. You can also get a reducing or fixed facility so it can be set to automatically move down. The oneaccount is supposed to track the BOE but they haven't moved it down this time.

Britannia used to do a flexible mortgage where you could over pay as much as you wanted and do drawdowns. Interest was charged daily. I think they probably still do it. It was set to track the BOE so it might be a lower rate as it used to be something like BOE + 0.5% when I had one.

JoeShmoe_2

wymondham wrote: »

whatever is left over at the end of the month becomes your mortgage payment, so if you have £1,000 left at the end of one month, this is what will come off the balance, if it's £50 on another this is the payment then - just as long as you get to zero balance after your agreed term then it's up to you how you do it.

Can you alter this - so as to set a regular payment on say the 1st of the month? Or is that not possible?

Im seriously considering this so appreciate some advice. Our HBOS mortgage fixed term runs out in Aug and it looks like the best fixed rate we could get is about 6% - and that has overpayment penalties and some hefty fees

My salary is about 3.5k a month which would go down to about 2k if I hadnt payed the mortgage. We owe 250k on a house worth 400k. I end up with anywhere between 200-500 quid left a month which I put in our savigs account which always hovers around 3k. We also have several ISA and lots of shares that we may use to make overpayments in time

Given One is 6.5% this doesnt seem too much of a hike in rate given what I might offset against my savings each month? I assume if I moved a set amount of money into my savings each month (so I cant touch it!) then that counts in credit too?

Wer'e disciplined with our cash and know where everything is going so does this make sense for us over a longer period of time (20-25 years?) given we will always have some money left over each month to offset against? Id like to know I can make a set payment though as id be happier with it going out on the 1st rather than the 31st