offset mortgage/savings advice needed

redkev10

hi, not sure if this is the correct forum for this

newbie here after a bit of advice, i have inherited £30000 and realise savings rates are poor, i have £79000 and 16 yrs left on my mortgage which i'd like to pay off as soon as possible and was thinking of taking up an interest offset or "one account" type mortgage, i don't want to pay the money directly of my mortgage as i want the money available incase of emergency as i'm self employed, just wanted to know if this type of mortgage would be best for my circumstances or to just put the money in a savings account, thanks in advance for any help

Wh05apk

As you will be having a large proportion of the mortgage being offset, it will likely more than offset the higher rate normally charged on offsets.

As you are self employed, the flexibility of the offset will probably be beneficial as well, as I suspect your income can be erratic, and presumably you have money set aside for your tax, which could be used to offset the mortgage?

dimbo61

You have not given any info on your current mortgage ! Interest rate, fixed / tracker, ERC or LTV and you should sit down with an IFA / Whole of market mortgage broker to make best use of this money.

redkev10

cheers for the replies guys, i'm currently on a variable rate which is about 4.2% (monthly payment £556) and the offset deal offered by the brittania is 3.79 with no fees (monthly payment £537) and i'll finish my mortgage 2 1/2 yrs early , she said the fee was made up of 1% base rate with a 2.79 top up , i'm not in a position to swap lenders as my earnings have dropped since going self employed and i wouldn't qualify for the amount needed, thanks again

dimbo61

Let's see ! You can't move lender and you are paying 4.24% on the SVR and they are offering you a cheaper offset with £30K in savings and no fees as well.
I love offset mortgages so build up savings and keep your mortgage payment static at £556 to clear the debt ASAP

redkev10

cheers dimbo61