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

essexsi_2

Hi all,

I got some great help on the mortgages forum about offsetting. As the key worker loan I have has to be the 2nd charge after the mortgage I was rejected by FD who don't allow this.

I thought I'd try this forum for advice on my options. None of the other offset lenders seem to want me either!!

I think the best option I have is staying with Nationwide on their [EMAIL="3yr@6.35%"]3yr@6.35%[/EMAIL] or 5[EMAIL="yr@6.45%"]yr@6.45%[/EMAIL] 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 for any advice.Si

angelavdavis

Hi,

As far as offsets are concerned - have you tried Britannia BS?

The answer to your question is - it depends on the interest rates you are able to achieve on your savings elsewhere.

Remember, you can save with Halifax for a year and get 10% of interest - more than you are paying on your mortgage, although liable for tax.

essexsi_2

Hi, thanks for taking the time to reply.

I will look at Britannia BS, I did not know they did offsetting, but I do know they take the key worker scheme as they were an option for me last time. Anyone any experience with their offset. I realise FD are probably the best, how do Brittania compare?
Otherwise, its a good idea to look into longer term good rate savings plans.

Thanks, all the best Si

angelavdavis

I have an offset with Britannia.

They pay a bonus of up to £275 per year as they are a mutual society (no shareholders). They also tend to have fairly low fees and provide fee discounts to members of certain unions (such as Unison).

essexsi_2

Thanks angelavdavis.

Looked into Britannia and pretty much all the others today, none of them take the key worker equity loan. Even though some of them take it for their other mortage products.This surprises me as they would have even more of my money with them in the offset!!

Think I am left with overpaying on my NW mortgage. This is such a shame as I would have saved £££££'s offsetting.

Anyone any other ideas???

All the best Si

essexsi_2

Hi all,

Thanks for the help. Just called Brittania to confirm they don't take equity loans. So no option of an offset!

Now I am swaying towards HSBC's life time tracker. No remortaging every few years, low entry fee, unlimited overpayments, no erc's. Problem is its a variable rate and ofcourse anything could happen!

Am I correct that BOE+ 0.79% is quite a good rate. I know it depends on what the BOE is, but just generally speaking?

Cheers Si