Virgin One Account- Any good?
Discussion
ss64ii said:
As the title says really, anyone got one, the one that's link to the mortgage and you pay interest on your outstanding balance after they take out the amount of savings you have?
Offset mortgages been discussed many times - generally a good idea IMO, especially when you can't get a decent rate of return on savings. First Direct do one where you have seperate accounts that link together. Its worked well for me for the last 4 or 5 years.Depends on circumstances really....for some people they work really well, for others they can work out more expensive over the long term. If you have significant savings you want to offset and have a bit left over at the end of each month, it can be good. If you're not disciplined with your financial management and/or dont have any savings or potential lump sums to offset, it can be a relatively expensive way to borrow.... Rates are generally higher on offset deals.
Oh, and it's not the "Virgin" One Account any more...it's just "The One Account"..a brand owned by RBS...
Oh, and it's not the "Virgin" One Account any more...it's just "The One Account"..a brand owned by RBS...
ss64ii said:
Thanks, just might be any easeir way to clear some credit card debt, the rate on the One Accout is 4.2% at the moment, credit cards are running at 25% plus.
Difficult to comment without knowing your circumstances, but why would you not just consolidate into a "normal" mortgage? esp. if you're not going to use the flexibility/features of the One account. Or is it the rate that attracted you?JMT1 said:
ss64ii said:
Thanks, just might be any easeir way to clear some credit card debt, the rate on the One Accout is 4.2% at the moment, credit cards are running at 25% plus.
Difficult to comment without knowing your circumstances, but why would you not just consolidate into a "normal" mortgage? esp. if you're not going to use the flexibility/features of the One account. Or is it the rate that attracted you?JMT1 said:
ss64ii said:
Thanks, just might be any easeir way to clear some credit card debt, the rate on the One Accout is 4.2% at the moment, credit cards are running at 25% plus.
Difficult to comment without knowing your circumstances, but why would you not just consolidate into a "normal" mortgage? esp. if you're not going to use the flexibility/features of the One account. Or is it the rate that attracted you?I would recommend it to anyone. The interest rate goes up and down with the base rate (although it's always more than the base rate of course). They always talk about the one account when rates go up - as in 'the one account is one of the only banks to have acted straightaway to increase their interest rate' but never mention that it is always one of the only ones to do the same downwards. I like knowing that all my left over money at the end of the month (yes, the hundreds and hundreds of pounds - er hum!) is going to reduce my mortgage. It's no-brainer saving. Plus the staff on the other end of the phone are always really nice and helpful.
However, I used to be able to do all my banking stuff in the middle of the night but now they're only open from 8 til 6pm (or 8pm, can't remember now). That's RBS taking them over for you. And that's the other downside at the moment (the RBS bit!).
However, I used to be able to do all my banking stuff in the middle of the night but now they're only open from 8 til 6pm (or 8pm, can't remember now). That's RBS taking them over for you. And that's the other downside at the moment (the RBS bit!).
I'm in the processing of applying for the FD one at the moment, with your savings effectively getting no return it's definately worth it. I think the rate for new customers is currently 2.89%. Bank Of England + 1.89% tracker. I'm currently fixed at 5.99% my own fault for actually believing the governments stated fiscal policy on inflation. Only going to cost me £4K to buy myself out of that deal...ooops!
Miss Fire-y said:
I would recommend it to anyone. The interest rate goes up and down with the base rate (although it's always more than the base rate of course). They always talk about the one account when rates go up - as in 'the one account is one of the only banks to have acted straightaway to increase their interest rate' but never mention that it is always one of the only ones to do the same downwards.
Is that a tracker product though? My mate has just moved away from the One Account (to First Direct) because whilst in the past they always had tracked the base rate, the most recent BoE cuts were not applied.In answer to the OP, I think Offset mortgages are generally good. If you're the type who is disciplined with money and usually good at saving then they are an excellent way of maximising the benefit of savings. I'm currently with Woolwich Openplan (Barclays) and it's helped me knock years from the projected end of the mortage (obviously the falling interest rate has helped enormously as well as offsetting the savings).
All I'm looking to do is transfer my mortgage and debt over, pay £5000 savings in, pay £200 a month over the top, and knock about 7 years and £25,000 off my total mortgage payment compared to what I'm doing now.
I would keep my First Direct account open to use on a daily basis.
Seems like the way to go.
I would keep my First Direct account open to use on a daily basis.
Seems like the way to go.
trackers only, but at 4.2% I thought it was a great way to reduce my outgoings.
As I said, clearing £25000 credit card debt, and clearing the mortgage early really appeals to me, if you have £50k hanging around, I'd look into it.
Just on the phone to FD at the mo,they're offering some good rates too.
As I said, clearing £25000 credit card debt, and clearing the mortgage early really appeals to me, if you have £50k hanging around, I'd look into it.
Just on the phone to FD at the mo,they're offering some good rates too.
Just had a quick look at one of them, online calculator reckons a monthly payment of £670!!(when i looked into fixed rate deals for the same amount came out at around £1100 a month!). We would then not touch that extra money so that would reduce payments further still?! Seems too good to be true.
I'm on an IF tracker offset mortgage (currently only paying 1.19%).
Offsets are fantastic for 'overpaying' your mortgage but without actually losing access to savings, which in the current job climate is excellent.
The savings are also tax free, which is an extra benefit if you're a 40% taxpayer.
And having an offset account generally opens your eyes to the benefits of cash-flow and the opportunity cost of things. Less relevant when interest rates are at 1% of course but when they were near 6% it made quite a difference. I remember paying a £6K bill by credit card instead of debit card and it saved me about £40 just by doing this.
Offsets are fantastic for 'overpaying' your mortgage but without actually losing access to savings, which in the current job climate is excellent.
The savings are also tax free, which is an extra benefit if you're a 40% taxpayer.
And having an offset account generally opens your eyes to the benefits of cash-flow and the opportunity cost of things. Less relevant when interest rates are at 1% of course but when they were near 6% it made quite a difference. I remember paying a £6K bill by credit card instead of debit card and it saved me about £40 just by doing this.
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