25 year, fixed rate, offset mortgage

quack

Hi,

I was just wondering if it is possible to get a 25 year fixed rate offset mortgage.

It will be a re-mortgage, house value 145,000, 115,000 left on mortgage

combined earnings of 25600 gross - 19200 net per anum (wifes earnings (Teacher), i am house husband = no earnings)

Many thanks for any help you can provide
and kudos to martin lewis saved £500 on car insurance...

Mortgageman

25 year fixed rate mortgage - yes
fixed rate offset mortgage - yes
25 year fixed rate offset mortgage - not seen one,

are you sure that:

a) You want to fix for so long
b) You would fully utilise an offset

What prompted you to want this particular type of product?

quack

thanx for such a swift reply

We were hoping to get a garunteed payment amount per month avoiding an economic intrest rate roller coaster for the term of the mortgage which seems to be the most likely whilst utilising the ofset to knock off some of the interest payable over the term

ta

DiggingOut

How much savings do you have, and what is your approximate monthly average current account balance? Unless one or both of these is a pretty significant amount, an offset doesn't pay.

Mortgageman

The problem with 25 year fixed rates (well the main one) is that they almost invariably have penalties for redeeming the mortgage.

They are also relatively expensive.

D/O makes good points about offset - are you really sure they are best for you (you'll find plenty of discussion here about offset / lowest discount)

Best thing to do is to talk to an expert, and look at costings for a variety of scenarios (25 year fixed / 10 year fixed / 5 year fixed / some offset / some not ), as it is the costings which I think will drive your decision.