DISQUS

Graham White · 1 year ago

Nice idea! We do a similar thing, but manually offsetting our savings against our mortgage so effectively our savings ear the interest charged by our mortgage so we're able to concentrate on paying it off. It's much more manual doing it that way though, these properly off-set mortgages are a great idea if you can get one at a decent rate!

garethj · 1 year ago

If you compare the rate of the One Account to a standard mortgage it's gonna be a lot higher. However, if you have the ability to pay it off in 4 years as opposed to 20 then that higher interest rate is a lot less significant.

Graham White · 1 year ago

Correct. If you're prepared to do it manually, however, you benefit from a lower mortgage interest rate and a higher savings rate. Overpay on your mortgage each month, saving the remainder. Once the amount of savings you accrue is equal to the remaining balance pay the balance off in full. I'd be interested to do a Braines-style spreadsheet to work out which approach is more beneficial. I suspect it would depend on just how quickly you're capable of paying off the balance though, I would expect there to be a cross-over at some point as to which is most efficient.

Mortgage Site · 1 year ago

Once the amount of savings you accrue is equal to the remaining balance
pay the balance off in full. I'd be interested to do a Braines-style

spreadsheet to work out which approach is more beneficial

good one