Best Offset Mortgage

joepubli

Hi

I have about 75% 0f my purchase price in cash but I'd like to borrow about 75-80% and keep the cash in an offset account so that I can use it for other purposes if needed. Also after a year I will let the property so a high mortgage will be better as it can be offset against rent for tax.

Question is - which is the best mortgage for a combination of high LTV and low fees - ideally no fee and free legals and valuation etc.

Joe

MortgageMamma

How much do you want to borrow?
how much do you earn?
what the property price?
How old are you?
What are you annualised credit commitments?
What type of property is it?

MortgageMamma

Is this a purchase> a remortgage?

joepubli

MortgageMamma wrote:

How much do you want to borrow?
how much do you earn?
what the property price?
How old are you?
What are you annualised credit commitments?
What type of property is it?

Thanks.
Purchase Price - £220k.
Borrow - whatever I can without paying a premium(use my £150k cash as offset)
Earnings - £90k
No commitment
Purpose built flat - 3 yrs old.
Joe

MortgageMamma

I think the one account is probably best but I will check on monday morning for you, i dont have my sourcing system here and I've not done many ofsets recently. Can you wait that long?

herbiesjp

A fully flexible mortgage may also be an idea for you. i.e. one that lets you make overpayments and then draw back down any over paid funds whenever you want.

Based on your details above I think you would pretty much have the pick of the market. You would also need to consider which lenders will give consent to let easily to you once you decide to let the property out

joepubli

MortgageMama - Monday is fine tahnks.
Re permission to let - I can't imagine its really going to be a problem if the payments are upto date. Re flexibkle loan - I wanted a situation where most of the cash I have is mine to do as I please without engaging with the lender. As I understand it, in an offset the amount is separte and I can take it out anytime.

I read Newcastle were doing one wirth no fees.

MortgageMamma

Whether it is fee's or no fee's is part of the equation, A no fee's could be higher interest rate than a fee's and dependent upon the size of loan either could be more suitable. Other things need to be considered also. I will look at this in more detail for you on monday....

herbiesjp

joepubli wrote:

Re flexibkle loan - I wanted a situation where most of the cash I have is mine to do as I please without engaging with the lender. As I understand it, in an offset the amount is separte and I can take it out anytime.

However, you can normally get far better rates on a flexible mortgage as opposed to an offset - Am i right in assuming then by what you have written, that you only what to offset your savings as opposed to having a full offset where you transfer your whole banking across?

joepubli

Hi Herbiejsp
I don't mind having a banking arrangement provided I can also keep my existing account. What I meant was that I didn't want to be in a situation where I have "overpaid" my mortgage and then the lender says that I cant have the overpayment back because the value of the property has dropped etc. I want to be free nd clear to move my savings - in to the stockmarket for example.

herbiesjp

joepubli wrote:

Hi Herbiejsp
I don't mind having a banking arrangement provided I can also keep my existing account. What I meant was that I didn't want to be in a situation where I have "overpaid" my mortgage and then the lender says that I cant have the overpayment back because the value of the property has dropped etc. I want to be free nd clear to move my savings - in to the stockmarket for example.

In that case you should be able to find several flexible type mortgages that may offer the flexibility that you are looking for, as well as offset that will allow you to keep your current banking arrangements.