Mortage -Advice required please

olaf_007

I have £20,000 in savings under the current climate would this be better in an account earning interest or in an offset account offsetting my mortgage.

Cannon_Fodder

depends on whether your mortgage is already a offset product...if not;

- what fees would you incur for leaving the current mortgage araangement.
- what fees does an offset mortgage require
- what rate does the offset mortgage charge
- does the £20K being offset, counter-act the rest of your mortgage being charged at a high % rate.

Conrad

As a general priciple one is more liekly to benefit from offsetting if the rate is similar to or higher than that on any savings account. If you are liable for Tax on savings then it should be noted there is no Tax on offset accounts.

koexelek

Conrad wrote: »

As a general priciple one is more liekly to benefit from offsetting if the rate is similar to or higher than that on any savings account. If you are liable for Tax on savings then it should be noted there is no Tax on offset accounts.

for anyone who is a higher rate taxpayer, offestting gets even better