Should I ditch my fix for Offset?

khowe

I have a fix rate of 3.69% until Jan 2015, currently have £147,544 left on mortgage over 23yrs 6mths. I have come into a large sum of money (80k) and I am wondering whether to ditch my fix and go onto a offset as savings interest rates at the moment are not very good. I will have to pay a £4300 ERC if I ditch my fix but Yorkshire BS are doing a good 2yr fixed offset rate at the moment of 2.49%

I've tried doing the maths and I think after 2 years I will be in credit by more than I would have earnt on interest?

Opinions would be grately appreciated as very confusing!!:huh:

amnblog

18 months at 1.2% saving = £2,655

offset at 18 months of 80K savings = £2,988

Saves £5,643 v £4300 plus any redemptions fees, plus product fees,

Plus you need to factor in the loss of the interest on the £80K

All sounds a bit marginal to me.

Keep what you have, max your premium bonds, pay off what you can on your current mortgage within any allowance available, and put the rest on deposit.

You might get lucky.