Lee Reynolds

As per title. Have you got one and are you finding it works..shrinking your mortgage?

Westy

iTrader: (1)

I looked into this... done the calculator etc and it magically reduces years off of your morgage lol.. must be too good to be true.

this is the one where you pay your earnings/savings etc into, therefore they use the interest off of that I think..

Would be interested in peoples experiences/thoughts too..

ps, you northern muppet

Lee Reynolds

Westy

cunt chops, i can see how it works. Certainley aint a gimmick ive done the math, just wondering how people are managing theres. If you spend ALL your monthly wage then it aint gonna work for you is it

Westy

iTrader: (1)

thats me out then

I dont actually know anyone who has the One Account.. spoke to a few people at work who suggested its a load of bollocks but that was it..

I still have a year left on my current deal.. but they have a calculator on there site, which reckons Id reduce it by 10 years.. currently 20 years left

Lee Reynolds

Youll only reduce it if you save every month! You use your savings to overpay your mortgage every month. But that doesnt mean you have no money then to buy things, as its like a massive overdraft! If you dip in then it wont get payed off as quick...but even if you end up overpaying 3k over a year, its still gonna reduce it!

Lee Reynolds

btw ive got 23 years left on mine, says with our input we could reduce it to 4 years Would not have to spend fook all though

St3V3_C

I called them a while ago after doing some sums and couldn't explain to myself where the savings came from.



The bird on the phone couldn't either



Needless to say I didn't bother

Westy

iTrader: (1)

23 years to 4 years..

and you honestly think that there's no catch It HAS to be bollocks, surely. Maybe Im just being negative, but if this was the case, why doesnt no fooker have a morgage with them

scoooby slayer

iTrader: (4)

its all bolloxs. simple put down every penny when you buy your house, smallest mortgate possible and have your pick of mortgages. and invest your spare money wisely and pay of mortgage when enough in saving to pay it. well thats what im doing anyway

Lee Reynolds

Westy

thats like i say an extreme example they give you to phone them. You would not have to touch the money you save every month to do that...which is almost immpossible. Me and lindsay did the calculator and put in a realistic figure what we think we could save for sure every month and it still brings it down to 9 years.

Its got to work....do the maths and youll see. It WONT EVER work if you cant save........

Lee Reynolds

invest in what? Other than other property?
One account seems a better way for people like me who have quite a bit of spare cash at end of each month, but doesnt want to invest....

Westy

iTrader: (1)

Hi Lee

I am from Nigeria and would like to buy your car... I will send monies in the post for Ł50,000.................


Deal

scoooby slayer

iTrader: (4)

i max out my isa each year then if works slack i buy and sell things. the wonders of ebay

CosKev3

My m8 had it when it was called the Virgin One Account,was scary when he went to cash machine,showed up -Ł80,000

He had it for 6 months,but as you say above,he kept dipping into the money he was supposed to leave in so after 6 months his mortgage was exactly the same

If you earn alot that goes threw your bank account it will save you money on your mortgage for every day that your wages/money stay in there,cause you are paying less interest

Lee Reynolds

Yeah if you dip you lose, i can see some people ending up paying more

CosKev3

I have done the calculations on line too,looks good.

The one thing I wondered is if they tell you the min amount you need to leave in at the end of the month to keep paying your mortgage,or is just left to you to work it out

dojj

iTrader: (3)

i was considering it, but i would have had to "save" Ł600 a month to reduce it down to just under 10 years with a deposit of Ł5k every year
at the moment i can put down Ł5k a year on the mortgage i've got and knock off a year a time

AND i can pay off 10% every year on the total amount AND it's fixed for 2 years

so i could pay off Ł17 grand in the first year and Ł17 grand in the second and reduce the mortgage by 6 years PLUS have smaller repayments to make

which is the better way to go about things, save like buggery for 2 years then pay off a big cunk on the mortage, at least you've still got some money left over if you decide to dip in

if i was earning about Ł10k more per year i'd go for the one account, bu at the moment it's too much to ask

XRdodgybird

I think if you have healthy finances and have loads of money left at the end of each month its probably a good idea... if you live to your overdraft, don't bother, you'll probably end up lengthening the time on your mortgage...

Dirty Harry

iTrader: (12)

I have the account and it does work

dojj

iTrader: (3)

but that's probably because you're loaded

Lee Reynolds

RS Specialists


thought you would be mortgage free by now Pete

Daviet

worked well for my sister and husband but not really working for me
but the figures on the site are true you just have to be good with your savings.but if your facilty was 100k for example when you opened and after a year you got it down to 90k you can then reduce the facilty so you cant then just dip back in to it
i did plan to use my 2 bonuses a year to help reduce mine but they usually end up smoked aswell

Dirty Harry

iTrader: (12)

depends on how many properties one owns

dojj

iTrader: (3)

talking all posh like that makes you sound like you need a butler

Iain Mac

I have an offset mortgage with First Direct where my accounts are all kept separate but the interest is calculated daily on the combined totals, and it is the best thing I've ever done with a mortgage.

Previously, I got only a little interest on my savings and the taxman took 40% of it from me.

Now I don't get any interest, but I don't pay interest on the amount of my mortgage equivalent to the value of my savings, and that is worth more than the GROSS savings interest would have been.

Also, the spare money in my current account is counted towards the mortgage interest on a daily basis, and even having a few days between payday and the Direct Debits going out adds up to a small advantage.

As said though, it's only worthwhile if you have savings or money coming in and not going out for a while (like VAT or self-employed tax!)

focusv8

I've just had a quarterly statement for my Offset Mortgage (not One account but similar), and it tells me I have paid just under Ł300 less interest on my mortgage for the last 3 months than I would have done without an offset.

This is the second quarter I've had one, the first saving was similar and covered the re-mortgage fees, so already I've made Ł300 for doing nothing.

Pity I didn't do this a few years ago as i only have 8 years left on the mortgage.

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Lee Reynolds

focusv8


300 pound a quarter is good for doing nothing mate. This is what im saying, a lot of people saying its a gimmick Nothings a gimmick if it saves you money

focusv8

If you are brilliant at shifting money around between high interest accounts, OR are absolutely crap with money and just keep spending it, this is not for you.

If however you are just the normal type of person who gets salaries or lumps of cash paid in from jobs and leave some of if it in to pay bills and move some of it to interest paying accounts eventually then this is for you.

One of the main advantages, already mentioned, is you don't EARN interest on your savings so you don't pay tax on anything.
What you do though is AVOID paying extra interest on your mortgage.

Anyone interested really needs to get an individual presentation done for their circumstances.

My mortgage is an endowment type, which was going to be 30% short at final term, doing this offset has avoided me having to pay extra to make up the difference as it will now just cover what's owed.

And I don't work for any financial body or have reason to gain from promoting this idea

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