What's the lowest you'd bother with an offset mortgage with?

Nine_Lives

Just doing some reading on my dinner break & if i understood properly, i just wondered, what's the lowest amount of savings you'd bother with an O.M. with?

To make the question personal to myself...

Our budget is 150k (we're considering increasing, but 150k for now).
We'll have 48k-50k to put down
We're looking at monthly repayments of no more than £500.
We're looking at fixing for as long as possible.

UsernameAlreadyExists

Initial Savings (deposit) is not where OM's come into play.
OMs work with overpaying and/or keeping your money in the account for as long as possible (max spend on CCs etc).
I've only ever used a tracker OM, and would swear by it.

So my answer would be £1 savings.

Thrugelmir

Do you require an offset account? Does your income fluctuate? Do you need a home to park VAT or Tax monies for a short while?

If your savings are small. Then a cheaper mortgage product with savings kept in an ISA might be a better option.

Wh05apk

Normally about 10-15% of the mortgage amount in savings, otherwise you will probably be better getting a lower rate.

Nine_Lives

Maybe i've misunderstood the idea behind it then.

However i have approx 40-50k that i could have access to which i could put into an account to use as part of this offset mortgage setup. I thought that was how it worked, but i guess i've misunderstood. Before it's mentioned, this 40-50k couldn't get put towards the deposit.

Do i require an offset account? Not sure. don't think so.
Does the income fluctuate? A little.
Do i need to park stuff? I've no idea how to answer that tbh. I'm not sure of the question if i'm honest.

hillcats

50K into an offset Mortgage of 100K is great and will mean you only pay interest on the "other" 50K you owe... (But cant match)

Nine_Lives

Aye that's what i thought, but posts #2 & especially #3 confused me.