Which fixed rate/offset mortage to go for?

Rautavaara

Any suggestions on a good fixed rate offset mortgage out there?

I plan on saving between £400 - £700pm which on a mortgage between £100 - £125k could potentially start to make a big difference on monthly payments.

I've seen some much better deals out there from other banks compared to what my current has offered me.

However, all the best deals seem to be for 2 years only.

First direct have an offer at 3.19% although I don't currently have any accounts with them. I gues this would mean I'd have to have a current and savings account with them for this to work?

HSBC have a non-tracker option at 2.99% but only allow up to 20% early repayment on monthly payments. Now, my projected savings far exceed this, so I'm guessing it's not such a good deal in terms of me saving on overall long-term interest payments.

Any ideas or suggestions? Obviously I want to make the most of what income I have left after expenses, and putting it towards mortgage payments seems like the best use for it.

Thanks

dimbo61

look I will say right now I am a big fan of Yorkshire Building Society and have had a fixed rate offset mortgage with them for the last 5 years.
The current 5 year offset fix is 4.79% fee £995 plus all the other costs but you can overpay or offset as much as you like !!!!
There are cheaper tracker deals but as most mortgage are 25 years this gives you some long term security while you build up savings in the offset and save interest on your mortgage
I had a look at FD 2 year fix at 3.19% £1499 arrangment fee !!! and YBS charge 3.69% for the same deal plus fee of £995
You are right that you can only overpay 20% ( of the monthly payments)on the HSBC mortgage deals
YBS also have " Family and friends " facility

dimbo61

The HSBC deal is 4.39% fee £999 but if you have spare money every month you could always reduce the term ( if allowed) or ask for a shorter term in the first place.
Me I like to have a good emergency fund which is there when we needed it but offsetting the mortgage the rest of the time so we chose the offset option

Rautavaara

Allo

Thanks for the suggestions!

With regards to this particular mortgage, is there a maxium mortgage period? I have seem some offset trackers that do not extend beyond 25 years. Realistically, I will be looking at 30 years in order to give me a bit more breathing space.

The only problem I see with Yorkshire is that I would also have to hold an easy access savings account with them, but I don't know of any branches near me. Are there any in London? Not that it makes a huge difference in this day and age and most of what I'd need could be done electronically anyhow.

Another option I was considering is one of the 5 year First Direct Fixed Mortgages at 4.59%. It only has a £99 fee and allows for unrestricted overpayments. Seems like a decent deal. The YBS equivalent also appears to be quite good.

I think, initially, the repayments at 25 would stretch me a little thin, although it wouldn't be impossible.

I will have a look at all of the above closer and do the calculations. Thanks for the suggestions. I'm sure I'll be back with more questions!

Gorgeous_George

I'm confused.

You worry that they only allow 20% overpayments but want a 30 year mortgage to keep it affordable. That doesn't make a lot of sense at this time of morning.

GG

getmore4less

I am not clear why the fixed is your prefered option.

Most of these come with highish follow on rates.

Lowest cost tracker would be my call for an offset