The One Account – UK Mortgage Lender
The One Account was launched in 1997 as a joint venture between the Royal Bank of Scotland and the Virgin Direct financial services company. By the end of 2000, the One Account had acquired more than 50,000 customers and set up a full internet banking service. The popularity of the One Account has continued to grow.
The One Account is an innovative account that combines mortgage, current account, savings, loans and credit cards. A conceptually simple idea, it is a mortgage account into which income and savings are paid, thus reducing the outstanding balance and hence the amount of interest owed. It offers great flexibility for repaying a mortgage early and for making overpayments or underpayments as individual circumstances dictate. The variable mortgage rate charged depends upon the size of the mortgage when compared with the value of the property, i.e. the larger the LTV, the higher the interest rate.
With the increasing need to consolidate and have flexibility in finances, offset mortgages have become increasingly popular with many high street bank providers adding them to their available mortgage options. The One Account has gone one step further and is a provider dedicated to offset mortgages.
The One Account allows borrowers to combine current accounts with a mortgage account so that the borrower’s salary is paid into the mortgage account, thus having an immediate effect of reducing the interest payable. This facility also allows overpayments to be made or additional borrowing to be used in any given month if necessary.