Help! Offset mortgage to Standard-Good idea???

fabman

Help

Looking to reduce mortgage and term...
Presently have an offset mortgage at 5.7%
£56k balance
15 years 7 months to go
Plus overpay by £105 per month.

Presently, only salary is going into the account which
dwindles by the end of each month.

As of next year will have £3k overpayment available for the
balance of the mortgage term.

Have read several threads about offsets and it seems that they work
best if you have a large ammount of savings to offset, which I clearly do not
have.
Any advice on the best route to go, without incurring large fees to change over to a different lender.
Have even looked at 10 year fixes, however you are locked in with charges.
Any help appreciated
Thanks

Joe_Bloggs

Perhaps you should consider the costs of not changing and balance these costs against the costs of changing. I'm sure you will benefit from the excercise and may be able to help others with their calculations.
J_B.

MarkyMarkD

If you are only overpaying and have a relatively small amount of salary in the account for a small part of the month, offset is probably not worthwhile.

Offset is only worthwhile for a very small proportion of borrowers, who have lots of spare cash (but don't want to permanently offset it, by borrowing less money in the first place), who probably pay higher rate tax and who don't want to keep moving mortgages.

As Joe says, it would be good for you to set out the costs and benefits of changing away from offset for the benefit of others, but I suspect that you may indeed find that offset isn't worthwhile.