Rejected for offset-how about this....?

essexsi_2

Hi all, first of all thanks for all the great advice on my other thread about FD offset.

I think the best option I have left is staying with Nationwide on their 3 or 5 yr fixes.

With NW I am able to overpay upto £500 pm without penalty. The overpay is kept in separately so that you can borrow it back at anytime.

Now as I wanted access to my savings but make them work harder for me does overpaying by £500 each month until all my savings are used up make any sense? Then I still have access to it if I need it, its knocking down my mortgage and I can then take it all back out before the fix rate come to an end. Apparently it takes a week to access this money so kind of instant access.

Does any of that make sense?!?

Thanks again for any advice Si

whu

Hi essexsi - what rate are they offering?could you make the £500pm work better by putting it into a savings account?I would imagine that the mortgage rate would be higher but thought I would mention it
PS also have a look at the article on the site headed should I pay off my mortgage - it might give you a few tips

lisyloo

I was going to say why don't you consider a cash ISA as that's tax free.
Rate could be higher but it depends on your mortgage rate.

essexsi_2

whu and lisyloo,

thanks for your advice again! The fixed rates on offer are 3yr @ 6.35% £599 fee or 5yr @ 6.45 no fee. Am leaning towards the 3 yr at the moment.

Open to options. So my above suggestion is a non-starter then? Thought it was a bit convoluted!!

Thanks again Si

tinkerbell84

I'd be going for the 5 yr myself.

essexsi_2

Tinkerbell,

Is that because you think the economy will take that long to recover from its current instability?
I had discounted a tracker as a bit too risky, but thought the 3 yr fix would just about see me through the worst, then maybe jump on a good tracker.

Ok so if I went for either fix, would the scenario in my original post be worth doing?

Thank you all for taking the time to help me out on this and other posts. Si

tinkerbell84

ish - i think it will be closer to 8 yrs, personally.

just signed up for a 10 yr fix

essexsi_2

Blimey 8 yrs! oh dear, better start stocking up on Spam !
yes I believe you got a FD fix you lucky thing!

They wouldn't touch me due to the 2nd charge of the Key worker loan. Neither will any of the other offsetters!!

Cheers tinkerbell, Si