Advice required on offset mortgage

getmore4less

devildog wrote: »

Totally appreciate what you are saying but as we were paying interest on a 'full' mortgage the repayments were obviously considerably higher and an endowment mortgage at that (don't need to say anymore ) Looked at various options and went with off set.

Not saying One Account(or offset acct) is right for everyone but for us it allowed us to repay the mortgage with flexibility and borrow against it as/when we needed to. I know you can overpay on some mortgages up to a certain percentage etc but for the ease of use/no hassle that extra 1 % or so really isn't an issue on the minmal amount now outstanding. Granted if you have a large(er) mortgage then every penny does count re interest rates.
As Desperate Housewife says-no problems with them,access to money at low rate as/when need and I have always found their customer service to be first class!

You are still comparig against "other" mortgages

There were offset lender that provided the same or better flexable offset/CAM products that did not rip people off.

Those lenders still offer better/products rates than OA and don't have a history of ripping customers off

devildog

LOL I'm not diasagreeing with you but op asked if anyone had had any experience with an offset mortgage which I have and it worked for me
Admittedly he mentions a 'one account' mortgage but I know many people who have an offset mortgage(not with the One Account) who still refer to their product as a 'one account' mortgage.

anskills

WestonDave wrote: »

To answer a question on the FD accounts - although they are set up as interest only, FD are happy to calculate repayment equivalent figures for you. So if they tell you that its going to be £700 per month to repay in 20 years, you just set that as your standing order to the mortgage account. You can always set it higher, or lower (provided you cover the interest charged each month).

that's interesting to note, i think i will give FD a call and discuss options with them. it appears i can get a standard base tracker or an offset base tracker for the same rate, so i will most likely go for the offset to give more flexibility. if i can then operate the offset system to pay off my mortgage quicker than all the better for it! the only thing i'm not keen on is the sizeable fees that are currently being charged for arrangement etc, will keep an eye out for a better deal over next few months as i'm in no hurry to buy a new house!