Should/Can i remortgage + Are offsets as good as they say

Brighty

Hello all

Looking for advice on whether i should/can remortgage or not.

My fixed rate ended a year ago and i'm sat on the Natwest SVR of 4%, i've look a few times at new fixed rate deals etc, but with the product fees, valuation fees and so on, it's never seemed worth moving, even within natwest.

Due to a recent inheritance, i have a bit of a lump sum i was wanting to use to overpay my mortgage, plus i am also in a position to make regular monthly overpayments of £400-£500 now due to rental income from inherited property.Overpaying on natwest doesn't seem straight forward, so went in to talk to someone and they suggested i change to an offset mortgage so i get the benefit of overpaying, but can also get at the lump sum if i ever needed to.

Seems to make sense and i've done a bit of reading and can't see any down side,or is there?

My options seem to be to stay with natwest on their offset at 4%, the same as their SVR with a £500 product fee, or jump ship to someone else, most likely first direct whos rate is 3.7%, also with a £500 product fee, saving me £17 amonth but having to pay £150 valuation fee plus £70 land registry fee plus having the possibility of getting turned down, hassle of remortgaging,valuation etc.

Obviously i’d prefer to go with first direct, but the tricky bit is i started a new job after new year so am only just over a month into a 6 month probationary period. Is is worth me even trying to apply with first direct? Or should i go with the natwest offset? Or i could just stay as i am for 5 more months then try FD?

Looking to borrow 102k at 75% LTV
My salary32k
Wifes salary 10k

Any views peeps?

Wh05apk

Unless you feel the offset is worthwhile, there are fixed rates at 75% with free vals and legals at about 3%, which will still allow you to overpay, they may be of more benefit.

The new job should not pose a problem with most lenders, not sure about FD.

kidmugsy

Is taxed income from your property a better bet than selling it and using the capital to pay down your mortgage?

Brighty

Wh05apk wrote: »

Unless you feel the offset is worthwhile, there are fixed rates at 75% with free vals and legals at about 3%, which will still allow you to overpay, they may be of more benefit.

The new job should not pose a problem with most lenders, not sure about FD.

Hadn't realised you could get such good fixed rates now, couldn't see much without extortionate fees last year. I can now get a 4yr fix with nationwide at 3.29% with only a £99 fee and the ability to overpay by £500 a month and still get access to it. Yhink that may be the way forward for me.

Brighty

Brighty

kidmugsy wrote: »

Is taxed income from your property a better bet than selling it and using the capital to pay down your mortgage?

Have a half share in 3 rental properties now after my brother and i inherited 2 more. They are my long term investment and retirement fund. Could sell them all, be mortgage free and have 150k in the bank, but what would i do with it? I'm only in my 30's. Think i'd rather keep them paying for themselves and giving me a bit of income to use to overpay my mortgage, can be mortgage free by my mid 40's then.

Brighty