The One Account
- Thread starter amaru
- Start date
why do you need to put lump sums in?
i just done a checker where i would put no savings in and a single bonus each year. it halved my mortgage time to 10 years while not putting the payments up. now thats better than my current mortgage and other debt no?
i just done a checker where i would put no savings in and a single bonus each year. it halved my mortgage time to 10 years while not putting the payments up. now thats better than my current mortgage and other debt no?
amaru said:I was looking at their online calculator and they recon they can shrink my mortgage from 25 years to 14?? is this realistic?
only if you regularly keep a huge amount in a current account ( even then the gain is only as much as they say if you currently earn nothing on this money ) or overpay each year
Soldato
- Joined
- 31 May 2006
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The one account and IF (inteligent finance) are good - especially if you have savings or a reasonable / good salary as they combine all your accounts in one.
If you use a credit card and pay off total bill at end of every month works out even better.
Only word of warning is that it's actually a current accout with a morgage sized overdraft attached - if your spending habbits are 'boom and bust' do NOT get one of these.
Rate is currently 5.7, their are many other repayment morgages (fixed and variable) on the market that can beat this.
If the calculator on the web site can save you 10 years you really need to swap morgage company asap, and save yourself some serious money.
Good luck
If you use a credit card and pay off total bill at end of every month works out even better.
Only word of warning is that it's actually a current accout with a morgage sized overdraft attached - if your spending habbits are 'boom and bust' do NOT get one of these.
Rate is currently 5.7, their are many other repayment morgages (fixed and variable) on the market that can beat this.
If the calculator on the web site can save you 10 years you really need to swap morgage company asap, and save yourself some serious money.
Good luck
Had one for a number of years - worked very well....
You can look at it in a number of ways - if you get bonuses/commission payments from time to time, as soon as they hit your account they reduce your overall mortgage amount (and thus any interest payments due) and reduce your time to repay. Overpayment becomes the norm rather than something you make an effort to do - whatever is left in your current account just goes against your overall debt.
There is nothing to stop you paying lump sums in, benefitting from the reduction in interest payments and then drawing it out again when/if you need it.
I calculated that the interest I would earn in a (admittedly basic) savings account would not be more than the interest payments I would save by putting the savings I had against my mortgage.
There are better rates out there, but for me and my spending/earning profile it works out very well.
You can look at it in a number of ways - if you get bonuses/commission payments from time to time, as soon as they hit your account they reduce your overall mortgage amount (and thus any interest payments due) and reduce your time to repay. Overpayment becomes the norm rather than something you make an effort to do - whatever is left in your current account just goes against your overall debt.
There is nothing to stop you paying lump sums in, benefitting from the reduction in interest payments and then drawing it out again when/if you need it.
I calculated that the interest I would earn in a (admittedly basic) savings account would not be more than the interest payments I would save by putting the savings I had against my mortgage.
There are better rates out there, but for me and my spending/earning profile it works out very well.
You need to do the maths on how much it will save you personally - work it out on a spreadsheet with projected costs, salary and savings figures etc.
It varies for different people whether its worth it or not and does not necessarily work out cheaper - the mortgage company still like to make a decent profit on offset mortgages.
It varies for different people whether its worth it or not and does not necessarily work out cheaper - the mortgage company still like to make a decent profit on offset mortgages.