First Direct Offset Base-rate Tracker.

buglawton

getmore4less wrote: »

No compulsory life cover on our offset, Barclays

Don't think FD need it either

Virgin's ONE acct certainly did want it but it's terms are well hidden, only an insistent phone call got the truth revealed about the compulsory life cover.

getmore4less

buglawton wrote: »

Virgin's ONE acct certainly did want it but it's terms are well hidden, only an insistent phone call got the truth revealed about the compulsory life cover.

The one account, you shouldn't touch with a barge plole.

getmore4less

michaels wrote: »

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...

Who is doing a 1.99% tracker?

FD non offset tracker is Base+1.89 so a 20bp difference.

michaels

hsbc with 1k fee, 2 year discount so factor the fee over 2 years on to the rate - is discount not tracker but that may be a plus if rates rise.

getmore4less

michaels wrote: »

hsbc with 1k fee, 2 year discount so factor the fee over 2 years on to the rate - is discount not tracker but that may be a plus if rates rise.

Follow on rate? very important.

stoutgoose

diversification........

all eggs in one basket

compensation scheme........:)[/QUOTE]


Good point about the compensation scheme; is it correct that it applies to each account, thus if I open another account each time I reach £50k, this should cover me?

They haven't insisted on compulsory life cover or any form of insurance.

We already have ISA's with a fairly hefty sum in them, plus share portfolio, and my aim is to clear mortgage within 10 years without touching these, whilst having instant access to cash should anything unforseen happen.

The lifetime tracker at 1.89% plus base rate is good, but once capital has been paid in, it's gone and inaccessable, so I figured the slightly higher offset seemed the way to go (both higher rate tax payers, so struggling to find anything that would match the approx gross 6% growth required to match).

Is there any other offset product out there that can equal or beat the First Direct deal?

VIGILANT22

Have you considered taking advice or do you prefer DIY?

JimBoB_5

stoutgoose wrote: »

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?

Err, isn't the overpay and borrow back facility just like an offset mortgage (a little slower as they back you back with cheques, but hey still not bad)?

As long as you got the mortgage before they pulled the borrow back facility there should be no need to switch away, save your money and time on this one and stick with Nationwide.