First Direct Offset Base-rate Tracker.

stoutgoose

Doing my 'due diligence' as my wife puts it!

I'm currently with Nationwide and paying 2.5% SVR on my mortgage.

I've found the First Direct Offset Base-rate Tracker which guarantees 2.09% above the B of E base rate, so currently 2.59%.

This is obviously a small amount above what I am paying at the moment, however I feel it is worth it for the flexibility offered by the offset facility.

Does anyone know of a better deal than this, or of any pitfalls associated with this mortgage?

michaels

£500 fee plus valuation fee and 65% ltv restrictions?

Every now and again they reduce tracker rate to bbr+1.89% and increase fee to 1000

Does offsetting make sense as you can do better in a cash isa or in an ordinary savings account if you (or your partner) are a non-tax payer?

Thrugelmir

Do you need or would use an offset facility? Thats the question I would ask.

Used correctly they are a good way of saving money with minimal effort.

VIGILANT22

Did you carry out "due diligence" on yr current deal of 2.5% with Nationwide ?!

buglawton

Don't forget the compulsory life assurance - thru an approved partner of the Offset acct provider - this can be £50 p.m. and they don't accept company schemes you may already have. I think these offset schemes are for the big hitters only.

getmore4less

buglawton wrote: »

Don't forget the compulsory life assurance - thru an approved partner of the Offset acct provider - this can be £50 p.m. and they don't accept company schemes you may already have. I think these offset schemes are for the big hitters only.

No compulsory life cover on our offset, Barclays

Don't think FD need it either

WillyBeamish

I've been accepted for this First Direct offset mortage. The only condition is that you use their current account, which is very good anyway.

Offsetting seemed like a no-brainer to me. Save extra whenever you want, but still have access to the savings at any time.

VIGILANT22

WillyBeamish wrote: »

I've been accepted for this First Direct offset mortage. The only condition is that you use their current account, which is very good anyway.

Offsetting seemed like a no-brainer to me. Save extra whenever you want, but still have access to the savings at any time.

No brainer........

diversification........

all eggs in one basket

compensation scheme........:)

getmore4less

WillyBeamish wrote: »

I've been accepted for this First Direct offset mortage. The only condition is that you use their current account, which is very good anyway.

Offsetting seemed like a no-brainer to me. Save extra whenever you want, but still have access to the savings at any time.

Do you mean use it or just have them?

Barclays you just have them(actualy 2 current and a savings more if joint) no requirement to use them

getmore4less

VIGILANT22 wrote: »

No brainer........

diversification........

all eggs in one basket

compensation scheme........:)

Loss of access to saving is the issue on lender failure.
You also lose the equivilent debt so not so bad or any worse than overpaying

agree you need backup emergency savings

michaels

Paying 60 basis points extra on 200k of mortgage in order to receive an effective 2.59% net on savings needs a pretty big savings pot to make it worthwhile even for a higher rate tax payer - imho...

WillyBeamish wrote: »

Offsetting seemed like a no-brainer to me. Save extra whenever you want, but still have access to the savings at any time.