First time buyer - any advice on mortgage type suitable for me?

dimbo61

25% deposit normally gets the best deals but some deals need 40% deposit

funkey_monkey

I've spoken to my IFA and she thinks that I might be best opting for a fixed or 2/3yr tracker deal as she thinks my money can work better elsewhere.

My opinion based on online checks was as following:

For simplicity of example - I have £160k in cash or near cash and purchase at £160k.
Pay deposit of £60k meaning a mortgage of £100,000.

Now I put my remaining £100,000 into an offset savings account. This means I pay no interest on the mortgage and my repayments vary solely on the number of years I pay over.

100,000 / (12 months * 12 yrs) = £462.96 will be my monthly repayments.
Every month I'll take this amount from the offset savings account and tx it into an ISA. This will be just under the ISA limit of £5,640:

462.96 * 12 = £5,552.62

This means that the amount in my offset savings account will always equal the amount due on my mortgage.
So, basically, I'll not care what the base rate is doing.

However, I'll need to figure out if my savings can work better elsewhere than being used completely to reduce my mortgage payments.

(Although, is £462.62 per month not still a substancial amount to pay out every month given my amount of savings?).