falkster

Has anyone got an idea of if this is real??

Ive filled in all the info and the calculator has said I can reduce my mortgage by nearly 17 years (got 23 years left).

I know I will be having mine and the wifes salary paid into that account and the savings we have but I still dont see how this can reduce my mortgage by about 80k interest!!

Ideas/views please

FlightMan

I believe an overspend of £50 a month knocks approx 5 years off an 80k, 25 year mortgage.

Looking at your figures, I's say its not unrealistic.

ricardo

Changed to that one in 2000. Cleared the whole mortgage in 4 years because of two salaries going in to the account.

It really is a no-brainer if the total income is relatively high compared to total expenditure. The savings compound rapidly as the capital decreases and the interest decreases, making the amount to pay interest on decrease...

SirFozzalot

Had a look at this myself.

Can reduce my mortgage from 17.5 years to 4 years!!!!!

Time to speak to a mortgage advisor me thinks.

SWRTWannabe

Yup, we have one too. Was looking really healthy, but then we went and had a baby and moved to a bigger house. So, slightly less healthy now, but I think we are still in a lot better position than we would have been with a standard mortgage.

ricardo

I asked a mortgage advisor about it once. He said that the Oneaccount people didn't take the mortgage advisors on cruises or trips to expensive locations for briefings, so he didn't know anything about it.

I asked a Oneaccount person about why mortgage advisors didn't know anything about it and they said more or less the same thing - they didn't expect the advisors to promote it because they didn't get anything out of it.

Worked for me. YMMV, OITMMBCTTA etc etc.

briforbes

Yes, because we're all cretins who would never actually offer someone good advice unless it was worth a few quid.

Also, lenders don't take us on cruises( ), more like the odd game of golf or trip to the races at best. Cheers for making us all out to be c***s though.

FlightMan

Fair enough.

So can you explain the Oneaccount then? According to my rough figures, my 16 year mortgage is reduced by 10 years, juts for bunging £200 a month into the account, and leaving it there.

falkster

Just spoken to my mortgage provider and due to me having another 2 years tie-in I have opted to pay another £300 per month into my mortgage account and they said that would reduce my term from 22 years to 13 years.

I will review it again in 2 years time to see if the one account is still the best option for us.

fast bloke

feking dozy scoobynet - just typed in a half page explanation and got logged out...... TWICE

to keep it short, - yes it does work, but not as well as the One Account Calculator makes it look

ricardo

Just repeating what the IFA told me. He was just back from the launch of some new financial offering in Cannes, apparently. If that's not how it works with you then sorry, but that's how it worked with him.

stilover

With One Account I could have mine paid off in 5 years 6 months.


I think I might have to look into this a bit more

boxst

Hello

Yes it does work, but you have to do your math correctly. The amount that you have 'left' at the end of the month goes towards the capital repayment and is gone, so what about Christmas, Birthdays, roadtax, holidays etc.. all of which are (for most people) extra and not regular per month.

So if the money you have left is REALLY left then yes it works.

Steve

Monkeybone

Exactly

imlach

Remember folks, this is just simple maths.

There is nothing to stop you putting any extra money into MOST mortgages and reducing the capital - most mortgages only allow 10-20% of the equity remaining to be paid off PER YEAR though....

So, if you're prepared to do the work yourself in making lump sum payments, there is no reason why you HAVE to switch to this "oneaccount".

Works on most mortgages.

Monkeybone

Aye overpayments are the way forward

fast bloke

The other drawback is that most offset mortgages offer higher interest rates than the cheapest discounted rates, so opting for a fully flexible traditional mortgage with overpayment and borrow back facility would probably save you even more

ricardo

The thing that made the oneaccount work for me is that the money that you haven't spent yet has reduced the mortgage. If you spend it then it is back in the mortgage again. In the meantime the mortgage is smaller, so the interest is less, so more money stays in there.

You don't have to actually DO anything to make it work, assuming that the grand total of money going in is greater than the grand total of money eventually spent. Any money that comes in that is extra helps a lot even if you spend it later. If you don't spend much for a while that money is reducing the mortgage more rapidly.

It is also possible to buy large items (like cars) using this account - the interest rate is the mortgage rate, not a personal loan rate or a car loan rate. Only recommended if you know you can afford it of course.

At a cash machine if you press the button to 'Show balance' it shows the account balance. Like -£90,000. Overdrawn again...

Bakerman

Steady on boys the 'quotes' you are getting is based on a list of assumptions. There are pros and cons DEPENDING on your individual circumstances e.g. the base rate is higher than you can fix on the high street so what happens if interest rates rise ?? Most mortgage lenders allow some overpayment anyway so what is the fuss all about (Nationwide for example allow £500 a month so clearly if you did that you would also dramatically bring the period down and reduce interest you pay).

If you get paid on the last day of the month and most of it leaves your account on the 1st then clearly it aint going to have that big effect. I am not saying it is bad, just be aware of both sides and dont be blinded by advertising lights .............

For some clearly it works but not for all. We have a cheaper fixed deal with the Nationwide and overpay it which works out for us (and note the word 'us) cheaper than the oneaccount.

Look at something like this

uk mortgage payment calculator,mortgage calculator uk, uk mortgage loan rate calculators, online mortgage payment calculators