Can/Should I get an offset & 5x salary?

g33za

Hello all, I'd really like some help in deciding what to do as I'm very much double-minded as the the way I should turn...

• I have a £131k mortgage in just my name, with 19 years left with Halifax, am paying about £1060 per month.
• Our house is a 3 bed semi with an approx value of £250k
• My salary is £30k, but have recently started a new job and currently in my probationary period until August.
• My wife has begun part time / ad-hoc contract work (from january this year) and her estimated salary for the year will be about 12k. She has no loans or bad credit, but has not really built up much either. A couple of phone contracts last year and thats it.
• Between us we have approximately 20k in savings

Before I switched jobs about 8 months ago I went to a broker with the intention of switching my mortgage to a offset (with IF) at the time he managed to get an offer(?) which I took away and thought about.

When I returned to accept he was unable to retrieve the offer or something and eventually this led to me be refused. It turns out he tried 4 times and as a result they eventually declined me according to IF who wouldnt tell me anymore.

Now with this in mind I don't know how this affects my credit score but i'd really like to move to a better mortgage deal than I am on currently. I have no redemption penalties so am free to move, and although its not the standard variable I'm sure I can get a better deal.

I'd like to make best use of our savings and also do make over payments every year.

I'm a bit hesitant to go directly to IF again to see if they will be able to offer a mortgage in just my name due to me needing almost 5x salary.. I guess I could depost 10k and reduce my mortgage down to £120k then would only really need 4x salary.. But not sure. I checked woolwich and they seem to be able to offer £120k from their online (quick) calculator. But this all seems very borderline.

Just so you know, prior to all this I originally took out a self cert with bham midshires then transferred to halifax (self cert, i think) then to a halifax discounted. I don't really think the self cert is the way to go.

Should I look at offset or just ploughing all my money into the mortgage and looking for a better discounted deal? I did like the offset idea of having the money available.. maybe as a deposit for a second house purchase..?

Apologies for the long detail but I really want to have a clearer idea of the direction I should be taking my mortgage.. and thanks for reading.

plane_boy2000

Cant really answer your questions, but have you called your existing lender to see what they could offer you? You may be able to get a better deal without much effort at all?

apk1

Do you have any plans for your £20k savings ? if not you would almost certainly do better paying a chunk off the mortgage, you will then be under 4x salary which will open a lot of doors (however you will still be in probationary period which won't help) you could then get a "normal" mortgage with a better rate.

Offset's really only make sense with sizeable amounts of savings.

g33za

Thanks for the responses..

Cant really answer your questions, but have you called your existing lender to see what they could offer you? You may be able to get a better deal without much effort at all?

I'm currently on a tracker tracking at .79 above BoE (for the term) and their other deals they can offer me aren't reallty any better really. Is it wrong time or something?

Do you have any plans for your £20k savings ?

Possibly may use some of the money towards a house extension. Although since my wife has started working we are saving a bit.