Originally conceived in the UK by Virgin Direct and the Royal Bank of Scotland in 1997, The One Account Ltd. pioneered a novel money-saving mortgage product. Known as an offfset mortgage or CAM (Current Account Mortgage), it allowed borrowers to consolidate savings and mortgages in one account, with the net balance (mortgage amount less the savings amount) charged the mortgage interest. The effect was a lower average daily mortgage balance, thereby reducing the amount of interest paid. Over time the savings could be substantial. The borrower was free to withdraw or add to the savings at any time. Virgin Money link here.
The mortgage product has won many awards including most recently ‘Best Current Account Mortgage’ from Mortgage Magazine in 2005 and 2006, ‘Best Current Account Mortgage’ from Your Mortgage Magazine in 2005, and in 2006 The One account was voted the ‘Best Current Account and Offset Mortgage Provider’ by Moneyfacts. (source: Wikipedia)
The One Account Mortgage Shrinker calculates the interest savings and years cut from your mortgage using the offset mortgage One Account. Has anyone used a One Account in the US?
For the other 99 money saving ideas, click here. Some are obvious, some are disputable. What money saving tips do you have to pass on?
