Offset Mortgage - advice

lanclass_2

I've had an offset mortgage with First Direct since 2005. You can potentially offset 100% and I would definitely recommend them for service. I''ve always got through whenever I wanted to and you can always use HSBC for manual transactions.

LE3

Thanks for the feedback lanclass - I think First Direct is the way to go ... I phoned them earlier & got the lowdown on fees/charges etc and I think I've made my decision to go with them ...
The only thing that's bothering me now is whether they will be able to do it in the timescales I want or whether it will take weeks & weeks & weeks to get everything set up & funds released!

LE3

getmore4less wrote: »

You said in the OP that you are on target for 9 years so you might be able to take some risk if this is based on good overpayments rather than getting old:).

correct I'm in the fortunate position at present where I am intending to put basically the same amount again as the mortgage payment into the offset account each month. I am wary of overpaying the mortgage as such, esp in the first few months, just in case I need to get my hands on funds in an emergency, but I see this as an excellent compromise. I am hoping to be paid off in ~9 yrs, maybe less if I can keep saving at the rate I currently am, but with the knowledge that I have that money available if I ever need it - it's a really scary thought that in a few weeks I'll go from having £££ in the bank to having almost nothing :eek: but on a positive note, I'll know that the bricks & mortar are MINE and not the landlords & if it all goes through & I do move, I'll be able to feel properly settled for the first time in 10yrs

iamana1ias

LE3 wrote: »

Thanks for the feedback lanclass - I think First Direct is the way to go ... I phoned them earlier & got the lowdown on fees/charges etc and I think I've made my decision to go with them ...
The only thing that's bothering me now is whether they will be able to do it in the timescales I want or whether it will take weeks & weeks & weeks to get everything set up & funds released!

It took them about 12 weeks to sort mine (remortgage). It does usually take quite a while I think as they are soooooooo popular. :A

Worth it though. After just 2 years I'm now offsetting 100%.

iamana1ias

LE3 wrote: »

correct I'm in the fortunate position at present where I am intending to put basically the same amount again as the mortgage payment into the offset account each month. I am wary of overpaying the mortgage as such, esp in the first few months, just in case I need to get my hands on funds in an emergency, but I see this as an excellent compromise. I am hoping to be paid off in ~9 yrs, maybe less if I can keep saving at the rate I currently am, but with the knowledge that I have that money available if I ever need it - it's a really scary thought that in a few weeks I'll go from having £££ in the bank to having almost nothing :eek: but on a positive note, I'll know that the bricks & mortar are MINE and not the landlords & if it all goes through & I do move, I'll be able to feel properly settled for the first time in 10yrs

You can take it straight back out again even if you've paid it off the mortgage. It's fully flexible.

no1catman

No one yet has mentioned the Leeds Bldg Soc.,
I have a off-set mortgage with them. I did consider First Direct but they wouldn't take anyone where to length of the mortgage was past 65. Abbey was also an option, but the office didn't seem so efficient, and there seemed more ifs & buts with them.
With Leeds, my 12 year in theory runs a few years after that, but I'm already down to a third of the amount after three years.
My off-set savings, is roughly equal to the mortgage, so every mortgage payment apart from a very very small amount reduces the mortgage, so every few months I reduce the off-set account into a 2% account.
And sometimes, pay off an extra amount to reduce the outstanding balance, yet still keep the same standing order.

MoneyMac

Hi

Ours took just 4 weeks (remortgage). Initial phone call 26th Feb this year and all complete by 26th Mar, that included the setting up of the 1st current account and all savings accounts, we had 32% LTV and we were very prompt in sending back all required signed paperwork, they were very efficient and we kept communication with them throughout and they were very good at keeping us informed of the progress, ABSOLUTELY BRILLIANT!!

getmore4less

LE3 wrote: »

correct I'm in the fortunate position at present where I am intending to put basically the same amount again as the mortgage payment into the offset account each month. I am wary of overpaying the mortgage as such, esp in the first few months, just in case I need to get my hands on funds in an emergency, but I see this as an excellent compromise. I am hoping to be paid off in ~9 yrs, maybe less if I can keep saving at the rate I currently am, but with the knowledge that I have that money available if I ever need it - it's a really scary thought that in a few weeks I'll go from having £££ in the bank to having almost nothing :eek: but on a positive note, I'll know that the bricks & mortar are MINE and not the landlords & if it all goes through & I do move, I'll be able to feel properly settled for the first time in 10yrs

If it was me I would go for a low rate tracker, fee or fee free will depend on loan size.

hermanmunster_3

I've had RBS and Woolwich/Barclays Offsets. Think they are great. the current RBS keeps the savings / current account and mortgage account all seperate.
Suits me as some of my work is self employed and the money earnt from that sits in the offset saving me interest until the tax man has been paid

LE3

getmore4less wrote: »

If it was me I would go for a low rate tracker, fee or fee free will depend on loan size.

Thanks for your response - I do intend to go for a low rate tracker with an offset ability too