Offset Mortgauges setup fees

heathpw

I currently have a repayment morgauge with the halifax and have heard that offset mortgauges can drastically reduce the interest payments if you have substanital savings. There are a few banks that offer offset mortgauges ie RBS, Halifax, but they have high setup fees from £400-£1000. Will this apply to first times buyers setting up there first mortgauge or does it apply to everyone whether they have an exisiting mortgauge or not.

Cheers
Heath

Thrugelmir

The majority of mortgage products also have product fees attached. Irrespective of whether they are fixed, tracker or offset.

Offset mortgages are bested suited to people with fluctuating incomes or actually want to maintain an accessible high cash balance.

Offsetting gives you a better return on your savings than many other deposit accounts.

However a better LTV can offer a better mortgage interest rate altogether so it does come to personal circumstances.