Offset v Non, interest only, simple calculator and good deals

hungrybloke

Hi all.

I have used this site for a few years now and it has helped me with no end of things, from switching utilities to finding pet insurance. And all variants in between! So thanks.

I have had an IF offset mortgage for 6 years or so now. I remortgaged nearly 2 yrs ago to a discount deal (currently 5.89%), however this will rise to 1.2% above BoE in Oct and I'm not having that. And their customer service is markedly worsening.

23 yrs left on £140,000.

I constructed a basic excel file (which I thought I'd upload but I don't have permission) which seems to suggest that non-offset is a winner, unless I have lots of savings and a bad savings rate, which seems to agree with general sentiment in the offset v non offset sticky. Given the abundance of cash ISA's paying decent at present, interest rate is not a problem (can use my wife's ISA allowance here). So I think I am looking for non-offset. I am surprised it took me so long to actually do the numbers on this, as I am usually pedantic and as miserable as it gets when it comes to parting with cash unneccessarily (apart from essentials like fishing rods...).

I realise that you can save by changing discount deals every 2 yrs, but quite frankly with the arrangement fees (or whatever name is used), the time spent researching these deals outweighs the potential gains for me personally (3 kids, I'm doing well just to get this online time!). And who knows what will have happened to them in 2 yrs.

So considering this I reckon my best bet is a non-offset tracker, best of which I can see is the Woolwich at 5.6 APR currently (0.18% above BoE for term), with not too much in the way of app fees, all things considered.

The other thing is I am an interest only believer, I pay 200 quid a month into a FTSE tracker ISA, as I reckon over 20 odd yrs this will do better than my mortgage rate. But that's another debate which will probably generate most interest.

I am interested in all general comments, but particularly if anyone knows of any deals I am missing......?

Thanks in advance.

MarkyMarkD

The Woolwich mortgage you mention is daftly cheap and there isn't much better available other than short-term discounts or other non-guaranteed rates.

Paying 0.18% above BBR for the long term is extremely good value and for anyone who doesn't have the time to switch products all the time, it's hard to justify choosing anything else.

hungrybloke

Marky, thanks for the response. No more comments, don't know if that means I have a good plan or bad....!

Leon_W

As long as you keep an eye on the rate you are receiving on your savings then your plan is good by me.

I wouldn't recommend what you are doing to anyone that didn't have a degree of financial savvy about them but it seems you have that covered !

I agree with Marky above, the Woolwich deal is great, overpay, underpay, payment holidays, fees free, NO EARLY REPAYMENT CHARGES. All at BOE + 0.18%. So even if you found something better in the future you could just move mortgage again.

hungrybloke

Leon, much obliged for the response, I hope my plan is robust but getting feedback from an advisor is reassuring (providing as you say I don't take my eye off the ball....).

Appreciated.