One account mortgage

Trimmer_2

For a few years I've been considering changing to a "one account" mortgage. Having entered the figures in the online calculater, the result shows that I could clear my mortgae 11 years early (have 22 years left) provided I maintian or increase the payments into the account. Whats the general feedback on this type of mortgage?
Are they realistic or is it best to stay with my existing repayment mortgage?

Heres a link to the calculater:

http://www.oneaccount.com/onev3/calculator/index.html

Thanks in advance

Peter

mrsm

I'm fairly new to offsetting (although our current mortgage is similar in that we can make overpayments and wothdraw again) but from what I can gather offset mortgages usually carry a higher percentage rate. However we're currently remortgaging with First Direct and have a low fixed rate for 10 years. We should be able to repay in that time using the current account and savings account offset plus making regualar overpayments saving 8 years off the actual term.

I'm sure plenty of others can give better advice (And I think there's a sticky on offsets either here or on the mortgage free wannabee board) but just wanted to say if you want to go down this type of route have a look at FD too

wymondham

Trimmer wrote: »

For a few years I've been considering changing to a "one account" mortgage. Having entered the figures in the online calculater, the result shows that I could clear my mortgae 11 years early (have 22 years left) provided I maintian or increase the payments into the account. Whats the general feedback on this type of mortgage?
Are they realistic or is it best to stay with my existing repayment mortgage?

Heres a link to the calculater:

http://www.oneaccount.com/onev3/calculator/index.html

Thanks in advance

Peter

Trimmer, don't read too much into the calculator as it assumes best case scenario's, although you can do it quicker than you think generally!

This has all been covered quite a bit elsewhere (see link below) - the One Account is a very good current account mortgage (good website/good UK based customer service etc..), but it is more expensive than others - it all hinges on your requirements, your financial behaviour, and commitment to changing the way you fundamentally view your finances. It's designed to be used to pay off your mortgage very quickly, so if you have savings or lump sums of money it could work very well. It worked very well for me, but there are lots of people who don't like it as they look at figures only (Martin included!) and not the lifestyle change - they will probably be along with the figures on comparisons etc shortly ... the decision as they say ... is yours!

http://forums.moneysavingexpert.com/showthread.html?t=587535

Read this link to ensure you have a good understanding of how it operates and who benefits from it. Post back if I can help at all. Good luck!

Trimmer_2

Thanks for the pointers - will have a read and think some more. Thanks again.

Pete

Gorgeous_George

Typical mortgage = £100K

Typical current account average balance< £1K: the current account sideof the deal has minimal effect on the term.

Typical savings = £10K (?): Has the same effect as having 10K in an offset saver. If the OneAccount rate is lower than an available offset, go for it. If not, take the offset.

The calculators may say that you can be mortgage free in 11 years. It doesn't make it clear that you will have NO savings at this point.

Interest rates are what you need to consider.

GG