First Direct Offset Mortgage

JayS_3

Does anyone have any experience of this mortgage, we are being offered one by L&C at preferential rates and it seems to suit us as we have a fair portion of savings to offset.

Just wondered if anyone had any thoughts/experiences - good or bad?

Joe_Bloggs

So much of it is down to personal circumstances. What interest rate? What fees? What personal taxation situation. How long does the deal last ? Have you maximised your existing oppertunities for tax free savings.

L&C are a mortgage broker. Your mortgage offer will be with a bank or building society.

With numbers/ circumstances/ options, someone can help you figure out if you are better taking one path or another. If you learn to figure out what is best for you then you can help yourself and advise others.

J_B

Darryl

I had a First Direct offset mortgage a few years ago (before I needed to use my savings... ). They are a good bank and the accounts work great via phone or internet.

As for is an offset mortgage good for you, if you have lots of savings then maybe yes. But best to check this first.

Try this thread on this site: http://forums.moneysavingexpert.com/showthread.html?t=471

Or download the Current Account Mortgage spreadsheetfrom the mortgagesexposed site and put in the numbers for your mortgage to see if it works for you:
http://www.mortgagesexposed.com/Book_Contents/spreadsheet_summary.htm

Hope this helps

Darryl.

StockportGerbil

Hi!
I've had one of these for three years and was very happy with it (but am about to close it - different subject - see seperate thread - don't let it put you off.) The internet banking side works well and when you've got a problem the phones get answered even at strange times in the early morning by people who are genuinely helpful. The nature of the thing means it's pretty flexible and there is the potential for paying off the mortgage somewhat earlier. I know there are probably 'better' products on the market but I do think the flexibility is wonderful.
Regards
Kev

JayS_3

Thanks guys,

I'm still looking into it, we liked the flexibility of the product and can't find any better rates (4.99% for 18 months,then 5.5% for 18 months - based on BOEBR + %) which allow unlimited overpayments without penality.

L&C's product is better than going direct to First Direct, and they collect fees from the Bank, not us. Set up is less than £300.

Am I not seeing the Elephant in the room, do you think?