Offset Accounts - The One Account
The One Account was launched to Virgin Direct customers in 1997 as a joint venture between Virgin Direct and The Royal Bank of Scotland. The service was then made generally available in 1998. This was a whole new concept in financial services and subsequently, a number of other providers have followed the example and launched offset products of their own.
In 1999, research showed that 8 out of 10 people in the UK with borrowings of £50,000 or more would be better off with a One Account. By the end of 2000, they had more than 50,000 customers and were lending in excess of £2.5 billion. They are now simply known as The One Account.
The One Account is used to combine a mortgage, loans, current account and savings into one place. It is simple to operate and very flexible - ideal either for those wishing to clear their mortgage as soon as possible or for those who may prefer to have the option to take a break from mortgage repayments for a few months if necessary.
The way it works is that any credit balances in a current or savings account is offset against the amount owed on the mortgage, so interest is only paid on the balance. Over the term of the mortgage, this can equate to thousands of pounds. Any money left in the account is automatically used towards overpaying the mortgage. By paying an £100 a month extra on a £70,000 mortgage could reduce the term by 8 years.
To find out more and see if you would save money by using your savings to offset your mortgage, please complete a Mortgage Enquiry Form and we will arrange for one of our professional independent mortgage advisers to contact you. Alternatively, you could telephone us on 0845 108 0505.
