Just get an offset-mortgage it's a total no brainer

HappyMJ

JethroUK wrote: »

Then why not borrow £100K @ 2.39% and stick it in your 'crappy' savings account @ 3% (tax free) (borrow from one bank and lend it to another) and retire on the proceeds

Dont quite work does it?

If you truly think you can borrow cheaper than you can lend then you should set up a bank

Can you retire on £610 per year? The profit from that transaction is £610. I wish I could....

Mrs_Z

JethroUK wrote: »

Then why not borrow £100K @ 2.39% and stick it in your 'crappy' savings account @ 3% (tax free) (borrow from one bank and lend it to another) and retire on the proceeds

Dont quite work does it?

No it doesn't, as HappyMJ above has said, it's not enough to retire, I wish!

So in the meantime, i shall carry on saving the cash in the savings account (instead of making overpayments) where it is also readily available should it be unexpectedly needed.

opinions4u

The total no brainer for me is to make sure I don't have a mortgage at 6%. Offset or otherwise.

That just seems silly.

getmore4less

Lavendyr wrote: »

To give a direct comparison - First Direct's lifetime tracker repayment mortgage is 0.1% cheaper than the equivalent offset.

You need to do the maths, simply put. By putting your savings against the offset, can you save more than you would by having more capital to repay at any given time yet paying 0.1% less for it?

Totally depends on the situation. Many people won't have sufficient additional savings to make it pay.

FD like for like were 0.3% last time I looked,

today they are still 0.3% or 0.1% for an extra £500 fee (65%LTV, 2.69% £499/2.79% £999)

Wutang_2

There's only one no-brainer here.....the bloke paying 6%.

Lavendyr

getmore4less wrote: »

FD like for like were 0.3% last time I looked,

today they are still 0.3% or 0.1% for an extra £500 fee (65%LTV, 2.69% £499/2.79% £999)

Ah whoops, may have looked at fee-free vs with-fee. My bad