# The one account



## Gruffs (Dec 10, 2007)

Has anyone got any experience with this type of arrangement?

It looks too good to be true and my personal circumstances may well prevent me from getting it anyway.

I'm after some confidence in it if you like.


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## Yowfailed (Mar 14, 2012)

My youngest lad has been involved in this type of account for some years now and swears by it.

This is the one where the bank pay you no interest on the 'savings' in the account but similarly, you pay no interest on that amount of your mortgage. I think thats how it goes?


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## Gruffs (Dec 10, 2007)

Better than that it seems.

I have an amount that is mortgaged, everything that comes in and sits in my account then is taken off the balance of that mortgage daily.

So, If i owe £175000 and we get paid £2500 between us. The day the money goes in, we pay interest on 'only' £172500. Every time we take some out, that amount goes back on the mortgage. Whatever you don't spend therefore is left not accruing interest on your mortgage. You can then transfer that to savings and your savings accrue as well as offsetting your mortgage. If you then leave all your bills until the last day of the month, you minimise the time that you have less money and maximise the time that that amount is not accruing interest. But, you can still access your money should you need to. 

You effectively make all your money earn interest at the same rate as the mortgage would make it accrue debt. 

If I could manage this it would be magic.

But, apparently. Your current account always shows your balance as the amount you are still in debt. Which is not a bad thing i suppose. 

According to the mortgage shrinker, I could pay off my mortgage in 9 years. :doublesho


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## Yowfailed (Mar 14, 2012)

You described it better than I ever could, you've obviously done your homework :thumb:

To listen to my lad talk about it sounds quite bizarre, he almost sounds like a financial advisor (which he's not )

I think if you can get your head around it and give some time over to it then it sounds like an excellent way of saving a lot of mortgage interest paid. Good luck with it :thumb:


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## Gruffs (Dec 10, 2007)

I'm trying to do my homework.

Our fixed rate is running out at the end of the year at which point i go on the SBR. Exactly the same as it is now.

But, We earn a lot more than the mortgage costs due to us being cautious and having to save for the 20% of our house that we do not own.

Which is where i think we will fall down on a current account mortgage. But, our LTV is 70% regardless of who actually owns the 20%. We would almost pay off our mortgage before we have to take on the 20% in 8 years time. Which would again be dispatched quickly. It seems too good to be true. Usually, they are.

The only problem i can see online is that the APR is higher but i don't really care that much as it is a higher APR over a much shorter term so is less money overall. Oh, and apparently, brokers don't like recommending Offset or current account mortgages as they don't get repeat commission. Sounds a bit cynical but hey, it is me.

Anyone else with any experience please?


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