The One Account?

rassman

hi,

i am interested in getting tis account, i called up but i dont know if i understood correctly.

I have a mortgage of £175k, i think in the good times my house would be valued at 190k or slightly more.

I want to consolidate my credit cards and loans into this account and so i am borrowing about £42k(includes this cumpolsary 30k from them).

Now at the end of it all the rep i spoke to says all i have to leave in the account for them at end of month is about £253 and that pays the interest.

I understand that my credit cards/loan will be paid off, but what about my mortgage, do i still have to make a seperate mortgage payment, currently paying £1000 pm. is all of this included in the £253 that I was quoted?

The old saying if its to good to be true it is. Current rate is 4.1% going down to 3.9% at end of Feb,

thanks

Cleaver

rassman wrote: »

hi,

i am interested in getting tis account, i called up but i dont know if i understood correctly.

I have a mortgage of £175k, i think in the good times my house would be valued at 190k or slightly more.

I want to consolidate my credit cards and loans into this account and so i am borrowing about £42k(includes this cumpolsary 30k from them).

Now at the end of it all the rep i spoke to says all i have to leave in the account for them at end of month is about £253 and that pays the interest.

I understand that my credit cards/loan will be paid off, but what about my mortgage, do i still have to make a seperate mortgage payment, currently paying £1000 pm. is all of this included in the £253 that I was quoted?

The old saying if its to good to be true it is. Current rate is 4.1% going down to 3.9% at end of Feb,

thanks

Each month they take just one payment from you and it is just the interest. So if took your net income in to the account each month and spent it all apart from £253 each month you would never pay anything off your mortgage. Anything you don't spend over that £253 would theoretically be paying off your mortgage (unless you spent it the next month of course).

So in a nutshell, they just take the interest from you each month. You then 'decide' what to pay off the capital.

hillcats

Another alternative is Intelligent Finance https://www.if.com

rassman

Cleaver wrote: »

Each month they take just one payment from you and it is just the interest. So if took your net income in to the account each month and spent it all apart from £253 each month you would never pay anything off your mortgage. Anything you don't spend over that £253 would theoretically be paying off your mortgage (unless you spent it the next month of course).

So in a nutshell, they just take the interest from you each month. You then 'decide' what to pay off the capital.

thanks for the reply, so to try and clarify further. Joint income is about £2500 pm, if we spent £2000 on other bills/lifestyle and left the £500 in there at end of month, one account would take there payment of £253, the leftovers would go to reducing my outstanding balance, in this instance it would be £147.

Do i have to have all my DD coming out of this account( car insurance, tv licence, council tax, blah).

wymondham

rassman wrote: »

thanks for the reply, so to try and clarify further. Joint income is about £2500 pm, if we spent £2000 on other bills/lifestyle and left the £500 in there at end of month, one account would take there payment of £253, the leftovers would go to reducing my outstanding balance, in this instance it would be £147.

Do i have to have all my DD coming out of this account( car insurance, tv licence, council tax, blah).

that's correct. Anything you don't spend in a month goes to reducing your mortgage - the account gives a good incentive to reduce the mortgage as quick as you can, and you should only consider it if you do indeed plan to pay it off as quickly as possible (that's the point of it)..

rassman

wymondham wrote: »

that's correct. Anything you don't spend in a month goes to reducing your mortgage - the account gives a good incentive to reduce the mortgage as quick as you can, and you should only consider it if you do indeed plan to pay it off as quickly as possible (that's the point of it)..

thanks, i notice from this thread that you have paid yours off already, i also notice that people are saying if used wrong, i.e buying a plasma tv it can seriously restrict you, how is that? Why would making a lrge purchase set you back?

I usually pay £1000 on my mortgage, if i stuck to this for 2-3 months and then decided i needed to pay for a holiday one month can i just take this 1000 out of my overdraft facility or is this one of those large purchases that people are referring to.

bunking_off

I think it was me who referred to plasmas, so I'll elaborate.

The account operates like a huge overdraft. There's no "Mortgage" Direct Debit going out of your account every month other than the interest charge, so it's a simple case that if

(salary) minus (sum of outgoings) minus (interest) > 0

...then you gradually pay off your mortgage. If however

(salary) minus (sum of outgoings) minus (interest) < 0

...then your mortgage will increase.

No-one is acting as nanny on your spending hence how quickly you're paying off - it's not like a conventional mortgage where there's a set payment every month - so if the [sum of outgoings] is inflated by you buying flatscreen TVs, laptops, cars etc then your mortgage will drift up in size...hence you're in trouble.

Your £1000 holiday is just another big expenditure...so on that month your mortgage will blip upwards (more negative) for that month.

rassman

next question concerning the 1 account. I currently pay about £1000 on a sub prime mortgage, this is due to change at end of Feb this year.

However i will be moving my mortgage to the 1 account, will i still hav eto pay £1000 out on my mortgage each month even though i will be with the 1 account or will my mortgage payment be included in the amount of monthly payment that they quoted me?

I will have an overdraft facility of £42,000 as this will hav epaid off my personal loan and credit cards loan.

The total monthly payment i was told to leave in was £236, i said I could pay an extra £200 per month on top of this.

Desperate_Housewife_2-2

Just been watching channel 4 news and John Prescot has started a petition for the public to sign regarding bankers' bonuses
'This campaign is apolitical but has been organised by Go Fourth - the Campaign for a Labour Fourth Term.

However, we encourage everyone, regardless of political views, to join us in signing this petition so we can keep the pressure on RBS.
It's reported that the Royal Bank of Scotland (RBS), which received £20 billion of taxpayers' money, plans to pay out £1 billion of it in bonuses to bankers and traders.

This from a bank that last year posted losses of £28 billion.

We believe this is morally and economically outrageous and the bonuses should be stopped.

The taxpayer owns 68% of RBS so we are now ALL shareholders.

So as shareholders, we therefore call on the board of RBS to announce that their bankers and traders will receive NO bonus this year.

N.B. Once you sign the petition your name will appear on the petition. You do not need to make a donation to iPetitions.'



http://www.ipetitions.com/petition/giveupthebonus/

wymondham

Desperate_Housewife wrote: »

Just been watching channel 4 news and John Prescot has started a petition for the public to sign regarding bankers' bonuses
'This campaign is apolitical but has been organised by Go Fourth - the Campaign for a Labour Fourth Term.

However, we encourage everyone, regardless of political views, to join us in signing this petition so we can keep the pressure on RBS.
It's reported that the Royal Bank of Scotland (RBS), which received £20 billion of taxpayers' money, plans to pay out £1 billion of it in bonuses to bankers and traders.

This from a bank that last year posted losses of £28 billion.

We believe this is morally and economically outrageous and the bonuses should be stopped.

The taxpayer owns 68% of RBS so we are now ALL shareholders.

So as shareholders, we therefore call on the board of RBS to announce that their bankers and traders will receive NO bonus this year.

N.B. Once you sign the petition your name will appear on the petition. You do not need to make a donation to iPetitions.'



http://www.ipetitions.com/petition/giveupthebonus/

I'm not convinced you'll get far as the Government protects banks!