offset mortgages - help

Ed_Zep

Nice_guy wrote: »

Hi 1eleonar,

I agree with what 'trying to be good' is saying. From the research I have done into offsets they are only worth it if you have a decent amount of savings. Don't forget offset mortgages are normally charged at a higher interest rate so if you have nothing/little to offset then it effectively works out as just having an expensive mortgage.

Here's a good link to fill you in a little more about offsets:
http://forums.moneysavingexpert.com/...ead.html?t=471

Hope that helps!
Nice_guy

Certainly it used to be the case that offsets were more expensive but I'm not sure if that's the case now. Before the credit crunch kicked in I got an offset mortgage at 0.5% + BOE.
Maybe they've gone back to how they were, though.

pokey128

I agree with Ed-Zep - I think offset mortgages are now almost as competitive as normal ones. We went with First Direct (who I cannot fault at all and would def recommend for their customer service alone) and although we don't have that much savings to offset - the deal we got was as good as any other product on the market.