Am I mad to consider an offset tracket, +1.99%

Trying_to_be_good

I'm about to move house. I currently have a small (see my sig) Woolwich mortgage at +0.18%, which I hope to port to the new property. I will need to take out an additional £200,000 mortgage (give or take).

I was originally planning to take a fixed rate - I know it will need to be with Woolwich if I want to keep the cheap tracker. The longest they have is a five year at 4.79%, allowing 10% overpayments per year, arrangement fee £999.

I'm now looking at the >£200,000 offset tracker, as Barclays/Woolwich let you offset ISAs and it saves rate-chasing on them each year. The arrangement fee is some £1,499.

Madness?

happy1982

Yes a little:j

TEDDYRUKSPIN

LOL. Happy is soo happy.

Not being funny. That fixed rate is rather expensive. If I am correct if you look around you can get a fixed rate of the similar nature at around 3.79% with a lower arrangement fee.

If you love the tracker rates, have you decided to look at the first direct tracker?

PS. Just a major warning. Barclays / woolwich no longer refund the arrangement fee if you decide to back out at the last minute.

Since you are on a tracker rate with them, it means you are not tied in. Go out and shop around or use a financial advisor.

I can't advise you but I can tell you that you can definitely save money with another institute easily.....

dimbo61

5 year fix at 4.79% with £999 fee is not bad and you have security and could use the ISA,s to overpay by the 10% allowed each year.
10% overpayment is £20,000 in first year and you have just over £40k in savings
Barclays RS paying 6% before tax and HSBC RS 8% before tax £250 a month max as savings vehicles.

Trying_to_be_good

Thanks, all - I'm thinking now of jacking it in with Woolwich and their appalling customer service and taking a new fixed rate mortgage with another provider.

Coventry are looking good, and I already have a savings account with them so have been a member for years. 4.49% fix for five years and allows 5% overpayments. Must try and save loads until then!