I am trying to work out something and would appreciate opinion, advice and information.
Offset mortgage with Virgin One current rate is 4%.
Bills are currently on direct debit (water, electric, etc). Some offer discount for paying this way others don't. Looking at these account, most if not all are in credit, some by hundreds. This is mainly as we are in the last week or so before the quarerly 'bill' is due, so once this period has passed the amount in credit will have dropped accordingly.
Now if I took a fictional example and started in January with a £20 direct debit, by April I would have paid out £60. If my bill was due only £55, this would leave a £5 credit to be carried over. The next month another £20 goes out and so on.
My question is would it be better to have not had direct debit and left this amount in the account so that my One account balance would have been reduced by £20 for 3 months, another £20 for 2 months and a final £20 for 1 month (if I explained that right!) assuming I had left the 'payments' in the account. When my bill came in I would have merely paid exactly what was owed before starting over, leaving £5 in my One account reducing my overall balance.
In other words are direct debits without any payments discount not the wisest thing for One Account / Off-set account owners?
Offset mortgage with Virgin One current rate is 4%.
Bills are currently on direct debit (water, electric, etc). Some offer discount for paying this way others don't. Looking at these account, most if not all are in credit, some by hundreds. This is mainly as we are in the last week or so before the quarerly 'bill' is due, so once this period has passed the amount in credit will have dropped accordingly.
Now if I took a fictional example and started in January with a £20 direct debit, by April I would have paid out £60. If my bill was due only £55, this would leave a £5 credit to be carried over. The next month another £20 goes out and so on.
My question is would it be better to have not had direct debit and left this amount in the account so that my One account balance would have been reduced by £20 for 3 months, another £20 for 2 months and a final £20 for 1 month (if I explained that right!) assuming I had left the 'payments' in the account. When my bill came in I would have merely paid exactly what was owed before starting over, leaving £5 in my One account reducing my overall balance.
In other words are direct debits without any payments discount not the wisest thing for One Account / Off-set account owners?