The ONE account
Discussion
Anyone got one? (no pun intended!)
I'm looking to buy a flat very soon (maybe this week
) and am deep into mortgage research at the moment. To me it looks like a very good way to pay of a mortgage and according to their calculators I could end up paying it off nearly 10 years early on a 25 year loan 
I'm looking to buy a flat very soon (maybe this week
) and am deep into mortgage research at the moment. To me it looks like a very good way to pay of a mortgage and according to their calculators I could end up paying it off nearly 10 years early on a 25 year loan We've had one (no pun !) for the about the last 6 years or so.
It works very well as long as you are disciplined - makes checking your current balance on the cashpoint a bit scary though.
Customer service is brilliant - available 24 hours a day and nothing too much trouble. I know that's what we all expect, but it is true to Virgin - all UK based as well.
HTH
Simon.
It works very well as long as you are disciplined - makes checking your current balance on the cashpoint a bit scary though.
Customer service is brilliant - available 24 hours a day and nothing too much trouble. I know that's what we all expect, but it is true to Virgin - all UK based as well.
HTH
Simon.
puggit said:
Our independent mortgage advisor told us that in order to justify one on our not considerable mortgage that we'd need to have £20,000 savings minimum.
really? I can't see how paying off a set amount each month for 25 years on a regular mortgage can even compare to the total flexability you have with a One Account (or similar). The fact that you end up paying it off year early automatically saves you thousands in interest payments alone. Can't fault the One Account - we worked our arses off and had we stayed in the UK would now own the property after just five years.
Interest rate is not the lowest but the trade-off is customer service second to none, available 24 hours from anywhere on the planet - I still have an account that I service even though we're currently living in Oz. I even tried to get them to lend me money for a property in Oz rather than change banks. Mortgage is also completely portable (within UK) and there are no hidden charges.
Discipline is key, though.
Best of luck with your property.
Interest rate is not the lowest but the trade-off is customer service second to none, available 24 hours from anywhere on the planet - I still have an account that I service even though we're currently living in Oz. I even tried to get them to lend me money for a property in Oz rather than change banks. Mortgage is also completely portable (within UK) and there are no hidden charges.
Discipline is key, though.
Best of luck with your property.
I had a look at these recently as well and was told about £15k in savings is the break even mark. Less than that and the higher rate of interest you pay over a standard mortgage hits you.
To be fiar I didn't investigate too much further as the house I was going to buy fell through so probably best to do your own research.
Mark
To be fiar I didn't investigate too much further as the house I was going to buy fell through so probably best to do your own research.
Mark
MBradbury said:
I had a look at these recently as well and was told about £15k in savings is the break even mark. Less than that and the higher rate of interest you pay over a standard mortgage hits you.
Maybe, if you pay it off over 25 years, but the point of the One account is the flexibility to pay it off as you can.
Other point is the simplicity - no side-accounts or offset nonsense to arse around with.
Ive just bought my first house been there 3 weeks. I went through the whole mortgage research thing. I was very tempted by the one account as my income is very irregular. But right at the last hurdle we decided ona 3 year fixed rate with nationwide. The mrs didnt like th idea of our mortgage payment been subject to interest rate changes.
I think its a great concept and i may look at it again when our fixed rate finishes but been our first house we wanted the security of knowing what our monthly payment would be.
Good luck by the way, Its well worth the initial hassle. I got close to saying bollox to the whole thing at one stage but stuck though it and im happy as larry. Only down side is i had to sell my super 6 to cover the deposit.
I think its a great concept and i may look at it again when our fixed rate finishes but been our first house we wanted the security of knowing what our monthly payment would be.
Good luck by the way, Its well worth the initial hassle. I got close to saying bollox to the whole thing at one stage but stuck though it and im happy as larry. Only down side is i had to sell my super 6 to cover the deposit.
generally these kind of accounts charge a higher interest rate than traditional mortgages. That is why it depends on your level of savings.
With most normal mortgages you can make capital repayments each month and also get this money back if you so desire. Therefore you have pretty much the same facilities, it's just more hasle to use them. With the one account the overpayment is automatic, if by making the same overpayment yourself say you end up doing it 5 days later, does this extra interest charge really make a material difference ?.
If you don't have large savings or a huge amounts of cash sloshing around each month this may not be the best account for you. Also I don't beleive you can fix rates with the one account (could be wrong).
horses for courses really :-).
With most normal mortgages you can make capital repayments each month and also get this money back if you so desire. Therefore you have pretty much the same facilities, it's just more hasle to use them. With the one account the overpayment is automatic, if by making the same overpayment yourself say you end up doing it 5 days later, does this extra interest charge really make a material difference ?.
If you don't have large savings or a huge amounts of cash sloshing around each month this may not be the best account for you. Also I don't beleive you can fix rates with the one account (could be wrong).
horses for courses really :-).
We've had a one account for two or three years now and really like it. It takes a bit of getting used to in order to understand what is going on with your money. Discipline is definitely the key and i would not recommned it to someone who finds their month is longer than their money!
Agree with the customer service side of things - usually use the website but whenever we phone they are always extremely helpful.
You can get a lower deal as far as interest rates are concerned so if you shop around and change morgages often then you can in the long run find it is cheaper but you also have to take into account that if you want a loan eg for a car then you can are only paying the morgage interest rate for it.
Not all of these accounts are the same - some have different rates of interest for loans/savings and some are not as flexible so it is best to shop around and understand what they can offer you.
Best of luck in whatever you decide to do.
Agree with the customer service side of things - usually use the website but whenever we phone they are always extremely helpful.
You can get a lower deal as far as interest rates are concerned so if you shop around and change morgages often then you can in the long run find it is cheaper but you also have to take into account that if you want a loan eg for a car then you can are only paying the morgage interest rate for it.
Not all of these accounts are the same - some have different rates of interest for loans/savings and some are not as flexible so it is best to shop around and understand what they can offer you.
Best of luck in whatever you decide to do.
First Direct do a very similar product to the ONE account.
I checked it out last year when I was looking to switch my mortgage. They have( had)a calculator on their website so you can input savings, debts, mortgage, income, etc and find out if it would benefit you. As previously said, I think you need to have a fair bit stashed in savings to make it really pay for you.
I decided against it after onsidering my options. It just didn't offer me what I wanted at the time. I would recommend First Direct though as they have been superb over the last 8 years for me.
I checked it out last year when I was looking to switch my mortgage. They have( had)a calculator on their website so you can input savings, debts, mortgage, income, etc and find out if it would benefit you. As previously said, I think you need to have a fair bit stashed in savings to make it really pay for you.
I decided against it after onsidering my options. It just didn't offer me what I wanted at the time. I would recommend First Direct though as they have been superb over the last 8 years for me.
Discipline is definitely the key...
For example, if you go out and buy a TVR with cash, you end up putting years on the mortgage. But it's a damn good feeling to be able to do it. (and at 5% it's a cheap car loan - with no approval hassles)
The website is good and I find the predictions and everything handy to see what's going on. The phone service is excellent too.
Above all, they don't mess around keeping the your bill payments for a week in clearing like some other banks I could mention...
For example, if you go out and buy a TVR with cash, you end up putting years on the mortgage. But it's a damn good feeling to be able to do it. (and at 5% it's a cheap car loan - with no approval hassles)
The website is good and I find the predictions and everything handy to see what's going on. The phone service is excellent too.
Above all, they don't mess around keeping the your bill payments for a week in clearing like some other banks I could mention...
mrs cone runs our house ( prob regret sayin that ) nd we have a one account , bloody great for us , but you do have to be carefull and not spend it. if ur a saver you ll be ok , it does get adictive watching your morgage come down. we paid ours off in 2 years - she worked her ass off nd stopped me spendin result - home owners!
Alternatively, get a more flexible mortgage that allows you to make overpayments from time to time.
We are looking at buying a house, and have savings. However, the One account type thing looks much more pricey on account of the high interest rate. You can do much better if you shop around for a good mortgage deal.
Oli.
We are looking at buying a house, and have savings. However, the One account type thing looks much more pricey on account of the high interest rate. You can do much better if you shop around for a good mortgage deal.
Oli.
As far as I know the interest rate charged is a fair bit higher than a good fixed rate.
I think the calculations have been done and you need to have something like 48% of the mortgage amount in savings to make the One account better vaule.
Have a look at www.fool.co.uk for further details
Ben
I think the calculations have been done and you need to have something like 48% of the mortgage amount in savings to make the One account better vaule.
Have a look at www.fool.co.uk for further details
Ben
Hmmm, so from what people are saying it's not such a good idea if you don't have any savings (I do at the moment but will all be spent on the deposit and furnishing my new pad). Even so, their calculators seem to suggest it'll still work very well for me simply putting £25 a month into savings along with my yearly bonus.
All I want is something that allows me to pay a set figure and be able to pay over that figure if I have extra money spare that month. I think I need to talk to some professionals to find out what my options are. This mortgage lark is bloody confusing I must say!
thanks all
All I want is something that allows me to pay a set figure and be able to pay over that figure if I have extra money spare that month. I think I need to talk to some professionals to find out what my options are. This mortgage lark is bloody confusing I must say!
thanks all
KITT said:
Even so, their calculators seem to suggest it'll still work very well for me simply putting £25 a month into savings along with my yearly bonus.
you can do this with most mortgages, even my Nationwide 3 year fixed mortgage, Though I can only over pay by £500 per month max for the first 3 years without incurring a penalty
KITT said:
All I want is something that allows me to pay a set figure and be able to pay over that figure if I have extra money spare that month.
most mortgages will let you do this
KITT said:
I think I need to talk to some professionals to find out what my options are. This mortgage lark is bloody confusing I must say!
very good idea, just bear in mind that they may be tied to one mortgage provider or thatthey may have one eye on their commission
thanks all
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