Coventry Offset Mortgage

Argyll_2

Hi There

I need some advice please.

I currently have a £100,000 offset mortgage with the Coventry building society which I can move from in two weeks. The reason I took out this mortgage was because I have a second home which is a small flat that I was planning to sell last year and use the equity (£60,000) to immediately pay towards my current home and reduce the mortgage to about £40,000. Unfortunately things did not go to plan and the sale of my flat fell through due to time wasters. So I currently rent out my flat on a short term lease.

I want to remortgage my main home as I am paying about £650pm to the Coventry BS and I'm sure I could better that. However my main concern is selling my flat and using the equity towards my main home. Is an offset mortgage the only mortgage I can pay large sums of money in to, to reduce payments or is there another way. I'm worried in case I cannot sell my flat again and I'm left with large payments on my main home.

I hope this makes sense? Feel free to ask questions.

silvercar

I've got a coventry offset mortgage and my rate is 4.99% fixed until january 2008. Why not ring the coventry and ask them what better deal they can offer you. They generally allow you to move to any deal available to new customers. I have found them very knowledgable and helpful on the phone.

Is your mortgage interest only or repayment? If its repayment you could consider moving it to IO until you sell the flat.

mab

Have you thought about a Flexx capped mortgage? I have just set this up with the Coventry. Daily interest rate and no early surrender payment. Check all the details carefully though as terms change and good luck.

herbiesjp

In effect you are looking for a scheme that will allow overpayments - so therefore the answer to your question is offsets are not the only products that allow this option.

WHat you need to decide, is to you want to be able to put the whole anmount of money into your mortgage all in one go or are you happy to limited to certian amounts per year i.e. 10% capital overpayments.

Another consideration, is whether or not you want the facility to be able to draw the ovepaid funds back again.

Ask Coventry what they can offer you bearing in mond you answers to these questions, but then also look around at what else in on the market.


HTH