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    • houmie
    • By houmie 11th Oct 17, 5:19 PM
    • 211Posts
    • 12Thanks
    houmie
    Is Scottish Widows a good lender?
    • #1
    • 11th Oct 17, 5:19 PM
    Is Scottish Widows a good lender? 11th Oct 17 at 5:19 PM
    Hello,

    I'm in the process of remortgaging for the first time.

    My broker has found be a deal for 1.19% 2-years fixed with Scottish Widows (£749 fees).

    I have found that Yorkshire Building Society is offering 0.99% 2-years fixed (£1,495), which can only be applied for directly.

    I would borrow around 400K, so the rate makes a difference over two years.

    Now I'm torn between which one to pick. The broker claims Scottish Widow is quite a special lender for remortgaging as ...

    1) Next time when I need to remortgage again, they always offer great products, which eliminates the need for switching the mortgage to a different lender altogether.

    2) They offer an Offset-fixed-Mortgage account, where I could hold my emergency fund in there instead to offset the mortgage interest. I'm paying 45% income tax, so earning interest is almost pointless outside the offset account.

    What do you think?

    Many Thanks,
Page 1
    • amnblog
    • By amnblog 11th Oct 17, 7:10 PM
    • 9,843 Posts
    • 3,812 Thanks
    amnblog
    • #2
    • 11th Oct 17, 7:10 PM
    • #2
    • 11th Oct 17, 7:10 PM
    Dont lose sight of the benefits of the offset feature. Have your Broker give you a copy of the offset guide booklet.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • AnotherJoe
    • By AnotherJoe 11th Oct 17, 8:14 PM
    • 7,375 Posts
    • 7,903 Thanks
    AnotherJoe
    • #3
    • 11th Oct 17, 8:14 PM
    • #3
    • 11th Oct 17, 8:14 PM
    I had an offset mortgage for probably near on 20 years and it was great, as i was earning five plus % tax free, however in today’s (and the foreseeable future) environment those benefits are gone, and your emergency expenses at one or two percent will be pretty small beer. Or they should be, if they are so large that the interest is a large amount then you have too much cash.

    On the mortgages, the lower rate YBS will save you about £1100 over two years if my back of a fag packet calculations are right id be inclined to take that now whilst it’s going. You can always take out the SW mortgage in 2 years if it’s so great at that point.
    • dunstonh
    • By dunstonh 11th Oct 17, 10:21 PM
    • 89,849 Posts
    • 55,438 Thanks
    dunstonh
    • #4
    • 11th Oct 17, 10:21 PM
    • #4
    • 11th Oct 17, 10:21 PM
    Its about the only thing that Scottish Widows are good for nowadays. Lloyds have nearly killed them as a viable insurance company.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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