Would offset work for me?

megisabel

I need to remortgage.

Mortgage needed 130,000

House worth 160,000

Would be able to pay 1,200 a month towards mortgage

Would a one account mortgage be of benefit or am I better just overpaying a standard mortgage?

Montly income is 2,500.

Thanks!

UK007BullDog

Offset works if you get paid lump sums or have other sources of money like savings to offset against your mortgage.

However they are more costly than regular mortgages.

If you do not get lump sums its not really worth it but if you are in the habit of saving larger sums it could work.

To find out if it will work for you, you need to speak to a broker who can show you examples according to your income/budget.

herbiesjp

Based on those raw figures, I would not think an offset to be the most cost effective mortgage for you - it really does depend on what rate you get on the offset but they are generally higher than other trackers/flexibles/fixed rates that allow for overpayments.

HTH