The One Account?

SALTY69

Thanks Minimoocow, Did that £200 include legal fees as well as i have been quoted £400 but i suppose that all depends when you took out the Mortgage it may be about the same in real terms.
Saly69:beer:

minimoocow

Yep I think it did - I'm sure there was only the 1 fee. It may depend on how much you want to borrow. I think someone has already mentioned their referral scheme which pays £125 to both the referer and the referee so if you did want to go down that route PM any of us with the account (or get any family/friends with it to refer you) and it would bring your costs down to £275!!!

alfiesmum

Hi Salty,
I don't know anything about the One Acount, so can't give you my experience of it. We looked at it when remortgaging, but the monthly repayment amount due to the interest rate made it prohibitively expensive for us.

What I did want to say was this..You will get a disproportionatly (sp?) high number of people who have the mortgage telling you that it's great. Because only people who's circumstances it suits will have actually plumped for it in the first place. Therefore they like it, otherwise they wouldn't have it. So a lot of people saying it's a good thing, isn't a true picture of how many people it isn't suitable for. I hope that makes sense, I know what I mean, but explaining it to others is difficult!

I'm not saying people are wrong to be recommending it to you, but don't make more in the for camp than in the against camp part of your decision making process. Look at the numbers, and any convenience of the features of the account, and what they mean to you.

wymondham

alfiesmum wrote: »

Hi Salty,
I don't know anything about the One Acount, so can't give you my experience of it. We looked at it when remortgaging, but the monthly repayment amount due to the interest rate made it prohibitively expensive for us.

What I did want to say was this..You will get a disproportionatly (sp?) high number of people who have the mortgage telling you that it's great. Because only people who's circumstances it suits will have actually plumped for it in the first place. Therefore they like it, otherwise they wouldn't have it. So a lot of people saying it's a good thing, isn't a true picture of how many people it isn't suitable for. I hope that makes sense, I know what I mean, but explaining it to others is difficult!

I'm not saying people are wrong to be recommending it to you, but don't make more in the for camp than in the against camp part of your decision making process. Look at the numbers, and any convenience of the features of the account, and what they mean to you.

Excellent point, and one I made earlier - if it suits it's great, if not then it's expensive .... difficult to be impartial as I obviously have an account but it all ultimately depends on how you manage your finances....

One thing I would point out is that as all remaining money in your account at the end of the month automatically reduces your balance, your outstanding mortgage balance can reduce much quicker than you would have anticipated. As a lazy person this has been the one thing that has helped me more than anything!

SALTY69

alfiesmum wrote: »

Hi Salty,
I don't know anything about the One Acount, so can't give you my experience of it. We looked at it when remortgaging, but the monthly repayment amount due to the interest rate made it prohibitively expensive for us.

What I did want to say was this..You will get a disproportionatly (sp?) high number of people who have the mortgage telling you that it's great. Because only people who's circumstances it suits will have actually plumped for it in the first place. Therefore they like it, otherwise they wouldn't have it. So a lot of people saying it's a good thing, isn't a true picture of how many people it isn't suitable for. I hope that makes sense, I know what I mean, but explaining it to others is difficult!

I'm not saying people are wrong to be recommending it to you, but don't make more in the for camp than in the against camp part of your decision making process. Look at the numbers, and any convenience of the features of the account, and what they mean to you.

Hi Alfiesmum, Yea i do understand but where do we find out who it will suit and who it won,t without trying. I spoke to a FA today who said she thinks there ok for people who have a great salary i take it she means in the £30000 bracket? she said the more money you have in there the better it is. But i want to make overpayment's each month of £350 and i will be able to see it shrinking which i won,t be able to see or figure out how long left on my mortgage with the HSBC who i am with at the moment. I know it is a bit strange where it is like a pyramid but i can cope with that it is overpaying over the term and seeing the mortgage account shrinking which seems to be what is drawing me to it.

wymondham

In a nut shell, the account would suit someone who had as much as possible left over at the end of each month - this would in effect be the mortgage payment, so whatever you did'nt spend would go towards this - sometimes it could be £300, but sometimes if your wage allowed it, it could be say .. £1200 etc and this is where the large drops in outstanding mortgage come from. The great thing is that is has not 'gone' as such and is still available to you to draw out if you need it, but this should be discouraged unless really necessary (it's not for plasma TV's as I often see as an example!!)

In all my calculations/spreadhseets etc I remove any mortgage payment as this is considered to be the part that normally says 'left over', or 'spare cash' etc !!

It takes some getting used to and getting the way it works clear in your head - if you have any questions just ask and we'll all do our best!

Remember the golden rule : It's not what you earn that matters, it's what you spend!!

ps: my salary is nowhere near £30,000 .... i wish!

SALTY69

Hi LOL Neither is Mine, But it is £20000 and after all goes out there is about £560 left at at end so if i get my head around the account all should be fine?

PS The £560 is after the mortgage is accounted for!


salty69

alfiesmum

SALTY69 wrote: »

I know it is a bit strange where it is like a pyramid but i can cope with that it is overpaying over the term and seeing the mortgage account shrinking which seems to be what is drawing me to it.

I know EXACTLY what you mean! You sound just like me! This is the reason we liked the look of it so much, really got my mind focused on paying things off as soon as possible. But a tiny bit work at the beginning seting up a plan for yourself, will ultimately mean you're better off every month, and mortgage free sooner too. This is what I did.
1. Set a date that you wish to be mortgage free.
2. Fill in your mortgage figures here: http://www.loanbright.com/edirectlending/calc_amortization.html
This will tell you how much of your mortgage you will still owe on that date. Pick full amortization - 'yes' to see the whole results.
3. Work out how much you need to save every month to match that outstanding amount in x years time. I use this calculator for that: http://www.halifax.co.uk/savings/calculator/calculator2.asp?ver=bos
4. Set up a standing order to a high interest savings account for that amount, and forget that you ever had that money spare - it's not spare any more, it's in your 'mortgage savings'.
5. On that set date if you haven't dipped into the savings, and haven't upped your mortgage (it relies on the interest rate staying put too with a fixed rate like we have), then you have the money to pay it off.

In a sense it will give you the same great feeling seeing the savings growing, as it would seeing the mortgage shrinking, it's the same end goal.

Without this site I would not have known any of this. Ten months ago we had a 25 year mortgage, now it's due to finish in 13 years time, and I'm building up savings pot to hopefully match it in 10 years time, so ultimately knocking 15 years off our original term. Just hope I can stay focused for that long!

wymondham

SALTY69 wrote: »

Hi LOL Neither is Mine, But it is £20000 and after all goes out there is about £560 left at at end so if i get my head around the account all should be fine?

PS The £560 is after the mortgage is accounted for!


salty69

Hi Salty69

So your remaining funds at the end of each month will generally be £560 + whatever you reserved for your mortgage payment - getting on for £1,000 a month possibly?? On a good month then you could be looking to reduce your mortgage by this amount which could make a dent fairly quickly. It will always be variable but it's a good start!

SALTY69

alfiesmum wrote: »

I know EXACTLY what you mean! You sound just like me! This is the reason we liked the look of it so much, really got my mind focused on paying things off as soon as possible. But a tiny bit work at the beginning seting up a plan for yourself, will ultimately mean you're better off every month, and mortgage free sooner too. This is what I did.
1. Set a date that you wish to be mortgage free.
2. Fill in your mortgage figures here: http://www.loanbright.com/edirectlending/calc_amortization.html
This will tell you how much of your mortgage you will still owe on that date. Pick full amortization - 'yes' to see the whole results.
3. Work out how much you need to save every month to match that outstanding amount in x years time. I use this calculator for that: http://www.halifax.co.uk/savings/calculator/calculator2.asp?ver=bos
4. Set up a standing order to a high interest savings account for that amount, and forget that you ever had that money spare - it's not spare any more, it's in your 'mortgage savings'.
5. On that set date if you haven't dipped into the savings, and haven't upped your mortgage (it relies on the interest rate staying put too with a fixed rate like we have), then you have the money to pay it off.

In a sense it will give you the same great feeling seeing the savings growing, as it would seeing the mortgage shrinking, it's the same end goal.

Without this site I would not have known any of this. Ten months ago we had a 25 year mortgage, now it's due to finish in 13 years time, and I'm building up savings pot to hopefully match it in 10 years time, so ultimately knocking 15 years off our original term. Just hope I can stay focused for that long!

Thanks Alfiesmum, But did you do the One account, if so did you put money in a high interest savings account as well as paying overpayments, sounds great i was thinking of doing the same with spare cash after i have paid the overpayment. I have saved you reply to my desktop so i can keep it handy. Many Thanks.

Salty69