Offset Tracker or 5yr fix?

potts8

Looking for some opinions on current mortgage offers I am looking at.
I am currently deciding whether to go on FD's offset tracker at boe +3.04 or Leed BS 4.75 5 year fix.

I will be offsetting by 15k and then saving around 1k a month on a 121k mortgage.
obviously rates will rise within those 5 years but its diffacult to weigh up how my savings will counteract any loss on the interest rates compared to the 4.75 on the fix?

Peelerfart

If it was me, and I'm not a fan of fixed rates at the moment, I would keep £5K emergency and use the £10K as additional deposit to reduce the mortgage,then go for the fix.
My understanding of an offset is that you would need roughly 20% of the mortgage amount to offset as savings for the sums to add up.
If you are also saving an extra £1,000 then in ten months you would have your 15K back and your paying less on the mortgage amount,cos you're borrowing less plus you'd still have four years of stability left.
What the interest rate does in those four years is anyone's guess - but you won't care.

For my guess I'll say it's going to be higher,or the same as it is now.

good Luck

PF

dimbo61

5 year fix at 4.75% is a good deal and if you do have £1000 a month spare I would overpay and build up an emergency fund like peelerfart recommends.
Once you have 6 months of income I would overpay as much as allowed and also save into regular savers and ISA,s
Good luck