bonerp

Hi folks,
I am thinking about changing mortgage and the One Account looks a great way to reduce to prolonged pain of a mortgage - however not sure whether they change the rates in line with bank of england changes like last weeks 1.5% cut. They dont appear to have done yet.

Whats the general view on these? Is it a good way to reduce debt quickly?

I can add a reasonable wedge of savings and as I'm a contractor can use a good monthly income to reduce it quickly.

Thanks
Paul

SteveScooby

iTrader: (2)

They are fantastic and can potentially save you £,000s, if you've got the self control to use them properly

al4x1

last time I looked the interest rate wasn't exactly great, You can shop round and what you're looking at is offset mortgages, I've an offset tracker at .24% above base a rate you'd be very lucky to get now but last time i looked the one account was sitting at about 6.7% so not great at all.
They work well if you have savings that you want to be able to get your hands on and similarly even your current account reduces the amount of mortgage outstanding. It also means you don't pay tax on interest on your savings.

NotoriousREV

First Direct are doing these types of account at very good rates, much better than the One account.

fivetide

iTrader: (1)

You do have to ignore the APR with these, because of the way they are set up it always looks bad in comparison.

Seriously looked at one when we were wanting to move but the mrs wasn't keen although i know others that have them and been able to do quite well from it.

5t.

stilover

I had a Woolich Offset Mortgage. Was around .5% above base rate.

Saved a canny bit of money. You have a choice of either reducing mortgage term, or reduce monthly payments. Not worth doing unless you have a decent percentage of the Mortgage amount in cash to invest. You can add and withdraw cash at will (though will adjust monthly payments).

Beware though.
Certain Offset Mortages want you to be paying your wage into there bank. (although you will have to open an account with them)
Certain Ofset Mortgages have quite big setup fee's.
Certain Offset Mortgages have high redeption fee's.

I looked at the "One Account" and deemed it not for me.

Best advise. Get a Financial adviser, as they will know the best deals.