Offset Mortgage account or savings

annemariestreet

Hello

I have money in an offset mortgage account; so paying less interest on my mortgage based on this.
However LLoyds have low interest rates on mortgages, which is good unless you are a saver.
Would I be better to put money into savings account, ISA or other such savings.

Any help appreciated

kar999

Offset mortgage for me as a higher rate tax payer. You are "effectively" getting the mortgage interest rate on your savings tax-free and you still have instant access on your offset savings.

It depends what the mortgage rate is though. Mine is 5.29% which I'd be hard pushed to find anywhere else in a tax-free instant access saving rate account.

annemariestreet

Thank you - checked my rate and you are right; I can't match it in saving. Really appreciate it:beer:

kar999

There's a useful calculator here:

http://www.moneysavingexpert.com/mortgages/offset-mortgage-calculator

annemariestreet

That is wonderful - really helpful. Thanks you so much:T