advice pls - offset mtge, Leek United BS

frugaldugalme

Hi everyone

First post, plse forgive any errors. I'm looking to switch to an offset mortgage and have done a fair amount of digging around to find the best deals. One esp looks good - 4.99% for term with Leek United BS. Various fees etc but don't look unreasonable.
Does anyone have any experience with this particular lender and/or mortgage?

jamesd

No comment on the lender but their flexible mortgage is available at 4.79% and allows overpayment and withdrawing of overpayments, so if you're not expecting to be making many transactions with the offset account that might be a better deal. Limited to a minimum amount withdrawn of 1,000 and no more than twice a year.

frugaldugalme

Thanks jamesd, I take your point, the discount against SVR is 1.7% on the flexible mortgage vs 1.5% for the offset. But as my circumstances are not altogether predictable for the next year or so I'm not sure I could live with the restrictions on withdrawal of overpayments. And looks like Leek have raised their SVR to 6.74% so the discounted rates are now 5.24% offset and 5.04% flex. Ho hum, I'll keep looking around! Still interested to hear from anyone who has used this BSoc. Thanks

Dave
(frugaldugalme)

Yakkob

Hello,

I have a mortgage with Leek United, and I also work there.
If you would like someone to give you a call and discuss options I will happily arrange it for you.
My knowledge of mortgages sadly wouldn't help you, as I work on the technical side (I.T.)

edit:

I have just called down to reception and requested the freephone number for you to call the mortgage-applications department.

0800 930 004

Cheers

Nick

humfer

I have always avoided offset mortgages as the interest rate tends to be around 1% more than a competitive tracker/fixed deal, but that package you mention looks quite good.

The thing with offset is how much savings to have to offset. Its a nice idea in theory but often doesn't work. Does the mortgage company have a calculator on their website to do a calculation to see how much you would save?

humfer

humfer wrote:

I have always avoided offset mortgages as the interest rate tends to be around 1% more than a competitive tracker/fixed deal, but that package you mention looks quite good.

The thing with offset is how much savings to have to offset. Its a nice idea in theory but often doesn't work. Does the mortgage company have a calculator on their website to do a calculation to see how much you would save?

You may also find yourself better doing a normal mortgage but overpaying. Have a look at the website below where you can play around with figures. Then maybe compare these findings to your offset calculations

http://www.loanbright.com/edirectlending/calc_amortization.html

frugaldugalme

Thanks everyone, for your thoughts & advice. I'm still prevaricating but I'll let you know the outcome - eventually!

dave

Yakkob

frugaldugalme wrote:

Thanks everyone, for your thoughts & advice. I'm still prevaricating but I'll let you know the outcome - eventually!

dave

I had to look that word up.

pre·var·i·cate (pr-vr-kt) Pronunciation Key Audio pronunciation of "prevaricating" [P]
intr.v. pre·var·i·cat·ed, pre·var·i·cat·ing, pre·var·i·cates

To stray from or evade the truth; equivocate.

????

frugaldugalme

Oops, well spotted Yakkob, guess prevaricate wasn't quite what I meant. Perhaps 'oscillate' would have been better? Def: to waver between extremes of opinion or emotion. Or, in plain english, just plain dithering!

Fruitcake

Is the Leek Offset deal combined with a current account? I have one of these with the Woolwich and it comes with what is effectively a huge pre-approved overdraft, in my case about 17 grand. This is something to watch out for if you are not srict with borrowing. Offsets are not for everyone but they can be made to work if you are careful.

The way to make a combined Offset/Current work is to use your credit card for every possible payment that you make. This means that your money stays in the account offsetting the interest for longer, and you stooze your credit cards to maximum advantage. The critical thing is that you must pay off the cc card in full every time, or it won't work.

Fruitcake

You Only Listen To Me When I'm Wrong