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  • FIRST POST
    • Hagar_uk
    • By Hagar_uk 4th Feb 18, 8:13 AM
    • 221Posts
    • 122Thanks
    Hagar_uk
    re mortgage - should I do offset?
    • #1
    • 4th Feb 18, 8:13 AM
    re mortgage - should I do offset? 4th Feb 18 at 8:13 AM
    Hi everyone.

    Looking for some advice. not sure what is the best thing to do to try and money save.

    In a nutshell I have about 8 years remaining on my mortgage. currently with high street bank in standard variable rate of 4 %.

    I owe about 36k on the mortgage

    I have no other debt except credit card which is only usually paid off each month.

    I have about 9k of savings in high interest current accounts. however I have reached the ceiling point of which the interest is paid.(Tesco and hbos)

    I currently like to overpay on very ad hoc basis and try to save each month.

    I am on the cautious side. hence why I have my savings easy to access. hence have not overpaid all my savings.

    I am wondering what is the best plan going forwards. offset mortgages were all the rage a while back but has gone very quiet of late. is it still worth it doing?
Page 1
    • Glover1862
    • By Glover1862 4th Feb 18, 9:32 AM
    • 254 Posts
    • 125 Thanks
    Glover1862
    • #2
    • 4th Feb 18, 9:32 AM
    • #2
    • 4th Feb 18, 9:32 AM
    I was thinking of doing something similar, however Ive got £110k and £50k Id want to offset.

    I was thinking about The Coventry BS flexx for the term product, its 1.85% for the full term but has £999.00 fee, that might make unviable for you. No early repayment charge, its variable but as you pay interest just on difference and rates rising won’t matter too much, they certainly take a while to get to what you are paying.

    I would add as much as possible to the saving account and leave overpaying the mortgage, Id hope that soon the saving would catch up with the mortgage balance, id be mortgage free if I pressed a button to transfer the funds, however at that point Id be paying no interest on the loan. If I carry on paying the mortgage as normal, I would eventually have the offset balance and the mortgage paid off. You would have access to the saving anytime which makes it attractive.
    Last edited by Glover1862; 04-02-2018 at 9:37 AM.
    • Thrugelmir
    • By Thrugelmir 4th Feb 18, 10:05 AM
    • 57,424 Posts
    • 50,712 Thanks
    Thrugelmir
    • #3
    • 4th Feb 18, 10:05 AM
    • #3
    • 4th Feb 18, 10:05 AM

    I owe about 36k on the mortgage
    Originally posted by Hagar_uk
    With a owing balance that small. A fee free option from your current lender is by far the best option.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • AnotherJoe
    • By AnotherJoe 4th Feb 18, 10:37 AM
    • 8,227 Posts
    • 8,955 Thanks
    AnotherJoe
    • #4
    • 4th Feb 18, 10:37 AM
    • #4
    • 4th Feb 18, 10:37 AM
    Start by switching to a mortgage with a more sensible interest rate. 4% is criminal.
    • dimbo61
    • By dimbo61 4th Feb 18, 5:56 PM
    • 9,750 Posts
    • 5,253 Thanks
    dimbo61
    • #5
    • 4th Feb 18, 5:56 PM
    • #5
    • 4th Feb 18, 5:56 PM
    Well I love Offset mortgages and have had 2 in the last 13 years.
    Have a look at a couple of lenders that offer offset mortgages
    IE YBS or Barclays and see if they have any Fee Free deals.
    However with only £36,000 left on your mortgage staying with your current lender BUT looking for a new deal for existing customers Could be the cheapest overall.
    So check out your current lender
    • dimbo61
    • By dimbo61 4th Feb 18, 6:01 PM
    • 9,750 Posts
    • 5,253 Thanks
    dimbo61
    • #6
    • 4th Feb 18, 6:01 PM
    • #6
    • 4th Feb 18, 6:01 PM
    only Halifax/Bank of scotland have an SVR of 3.99%

    Halifax
    https://www.halifax.co.uk/mortgages/existing-customers/switch-to-a-new-deal/?srnum=1


    BOS
    http://www.bosmortgages.co.uk/newdeals/
    • pennystretcher
    • By pennystretcher 5th Feb 18, 1:03 PM
    • 352 Posts
    • 1,385 Thanks
    pennystretcher
    • #7
    • 5th Feb 18, 1:03 PM
    • #7
    • 5th Feb 18, 1:03 PM
    Definitely look into remortgage with current lender, and after that if you still can't find better interest for your money elsewhere, overpay within the allowed limits and save rest..
    MFW Feb 2018 £90 - yes, £90!!!!! (almost there!!!)
    • MortgagesUnlimited
    • By MortgagesUnlimited 5th Feb 18, 3:19 PM
    • 1 Posts
    • 0 Thanks
    MortgagesUnlimited
    • #8
    • 5th Feb 18, 3:19 PM
    • #8
    • 5th Feb 18, 3:19 PM
    Hi,

    I would look to remortgage to a cheaper lender and reduce the term at the same time, any over payments that you make should come straight off the capital amount.

    You have such a small mortgage only the fee free options will make sense.

    Accord/ YBS charge a higher interest rate on their offset products if I remember correctly.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, 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.
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