Offset Mortgate (fee free or not)

spider31

Hello,

I know a sticky thread exists for offset mortgage but I thought I would post a new message (maybe an offset sub-group should be created

My current Mortgage is around 80,000 house is worth 250,000 (maybe 300,000 when we have finished the renovations)
I pay around 400PM
I have debts of around 27,000 (This was a home improvement loan)
I save around 1000PM
At present I have around £3000 Saved and £1600 in an ISA (spent most of it at XMAS:) )

I use my savings to top up my current account if needed.

At present the mortgage is in my partners name and we want to get it in our names.

The time has come to move mortgage and put it in joint names.

I have been looking at First Directs offset; it has an APR of 2.5 or 2.9.

To get the 2.5 APR I would need to pay the fees (£999) if I go fee free its 2.9APR. My gut says pay the £999. But this would in directly just be added to the mortgage as my savings would go down by £999. We also need to raise around 15k to complete our house renovations.

I would put the 27k loan onto the Mortgage.

PS

Has anyone done a good offset calculator, I use one on the web and it said I would pay my mortgage of in 3 year another one said 10.

dimbo61

Try the YBS calculator for the offset
But to clear £80,000 in 3 years means paying over £2000 a month !
Use " whatsthecost" to work out if its better to have the lower 2.5% deal and pay the fee or the higher 2.9% deal with no fees
With a £107,000 mortgage I would go for there 3 Year fix but that me
GOOD LUCK

getmore4less

Very rough calc.

80+27+15= £122k * (2.9%-2.5%) 0.004 = £488

Fees recovered in just over a couple of years.

offset calculators

Again you can do a rough calc £122k @ £1400pm 87month(7y 3m) minimum before interest so any calc that says less is double counting somewhere.

Simple mortgage calculator with overpayments will get close.
http://www.whatsthecost.com/mortgage.aspx

97 months so around 8 years £122k @2.5%

edit: the oneaccount calculator it was very easy to double count payments if not carefull, was that the one that said 3years?