offset vs fixed mortgage - help pls!

Stressfree_WB

Hi everyone,

Id really appreciate if someone could give me some guidance on two mortgages im trying to decide on as i am due to remortgage with a goal of paying off the mortgage asap:

80k balance. Offset 3.49%, 5 years fixed on a 7 year term.
12k savings, and i plan to top it up with £500 each month and pay the balance off at the end off 5 year deal.

Or

80k balance. 5 years Fixed rate at 2.79. 7 year term. My plan would be to save the 12k i have built up and make monthly mortgage over payments of £500 a month

Which one sounds the best if i want to pay my mortgage of asap and save on interest?

somethingcorporate

Try Martin's ultimate mortgage calculator here: http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator

It should help with your decision. Personally, I'd go for the lowest rate and overpay the max.

What is your LTV? shop around, you may be able to beat those rates.

Stressfree_WB

Thanks. My lvt is 60% . The mortgage im looking at is only £300 fees for the fixed and offset.

Possibly the lowest rate could win overall. The mortgage calculator is good but could be better if you could compare offset and fixed!

Stressfree_WB

somethingcorporate wrote: »

Try Martin's ultimate mortgage calculator here: http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator

Personally, I'd go for the lowest rate and overpay the max.

Hi ,

Just in case anyone reads this, I decided to go with the offset mortgage. I used to comparison calculators and on paper the offset mortgage reduced my term but what worked for me is that rather than paying money off my mortgage I'm now saving that money and making it work for me.

So essentially when my mortgage is paid off, I should have a lump sum off savings. I now have 16k in my offset , so I'm currently only paying interest on 62k. My term is ten years but I plan to have it paid in 2.5 years ( see my other post!)