Offset Mortgages -- the Numbers

getmore4less

Get the money inot savings for save options tacker savings would be a good idea.

Also look at cash ISAs you can offset those as well, so long term you can build up a tax free pot of money on offset or not depending on the rates avaialble.

even simple instant access accounts are paying 2.5% so you are up.

englisho

I always thought I was doing the right thing but this thread has made me have doubts..

I have a nominal amount of about 20k left on my mortgage. I put 20k into the offset account so in theory I'm not paying any interest but still have access to the 20k should I need it.

Is this the sensible option?

dave_wolves

PaulieC wrote: »

I'm about to remortgage and fancy moving to an off-setting account where I will pay in everything - salary, savings, etc. FD is obviously a better rate than the One Account. I know a lot of people are unhappy with OA rates. But are there any advantages to the OA over FD? Is it more flexible for example if you need to borrow? Anybody had both and can compare the two? Many thanks.

I wanted to resurrect this as it is a great a question, and one I'm pondering over myself at the moment, does anybody have an opinion on it? I personally favour the One Account features but am feeling the rpessure from FD fans.......appreciate your help......

jrs101

thepixies wrote: »

Hi all

I am confused as to whether i should keep offsetting my mortgage, pay it off early or move my money into savings and play off int/savings rates.
My details

mortgage left 100k; int rate is barclays base + 0.74 = 1.24% now
offset savings 70k
offset isa 30k

i reckon if my money into savings (and put in my wife's name who does not pay tax) i can earn approx 4k year interest (using some fixed rate bond accounts), compared to accruing 1.3k on my mortgage. If rates rise then I could always go back to offsetting.

Alternatively I could just try and pay off whole amount early.

Any suggestions/guidance ?

Hi

I need this clarifying I think

I have an offset with FD and have about 80k savings against debt of about 130k. I have isas elsewhere which you cannot offset with FD.

Is it worth putting cashing in the isa and putting that money in the offset or leaving it where it is. How does one work out which option is better?

Is there a calculation?

getmore4less

dave_wolves wrote: »

I wanted to resurrect this as it is a great a question, and one I'm pondering over myself at the moment, does anybody have an opinion on it? I personally favour the One Account features but am feeling the rpessure from FD fans.......appreciate your help......

What One Account features are not available with any other offset product?

getmore4less

jrs101 wrote: »

Hi

I need this clarifying I think

I have an offset with FD and have about 80k savings against debt of about 130k. I have isas elsewhere which you cannot offset with FD.

Is it worth putting cashing in the isa and putting that money in the offset or leaving it where it is. How does one work out which option is better?

Is there a calculation?

What rates are you getting/paying thats the key to this.

Remember ISAs tax free status last beyond the mortgage

Thrugelmir

getmore4less wrote: »

What One Account features are not available with any other offset product?

With my offset facility I can only withdraw the money by cheque on written request , minimum £250. A totally different product to the OA.

getmore4less

Thrugelmir wrote: »

With my offset facility I can only withdraw the money by cheque on written request , minimum £250. A totally different product to the OA.

Totaly different product to most offsets where you have a proper accounts you can access.

A very poor product, so one lender of the list (could have said which one)

Still leaves plenty of others that are just as good as OA or better.

pippicalzelunghe

I need your expert help.

Barclays are trying their best to allure me and my savings into an offset. Sometimes it seems a good idea, other not so much. They been so keen makes me worry there's a lot in it for them and little for me. Here are the numebers if anybody has a minute:

mortgage left £60000 Savings £50000 (normally in year fix at around 3.5 but in a no interest in the last year, taxed at normal rate). 16 years left. Barclays offers an offset at 2.88 for two years which then becomes 3.28. at the moment we are on a tracker following the end of a fixed at 3.5.

PROs in my view: all under one roof - do not have to faff about every year to change saving account. money available in emergencies.

CONs: lower gain on savings. remortgage fee of a £1000.

Over to you.

Thanks in advance.

Sarah

LoopyPrune

Current mortgage is a variable rate running at 3.24% (LIBOR+2.45%)

I will receive a payment of around £15k in Dec from my compulsary redundancy. I have built up 2k in a current account and have stopped all unnecessary spending so comes Dec I should have closer to 5k. Question is does an offset mortgage work for me from Barclays?

House is valued around £63,000 and I have £33,500 remaining at 20 years. My payments are £194 a month which I feel is too low.

I was going to take a fixed rate with Halifax for 2 years for 3.59% for 15 years and no fees. But Im wondering if its better to make this money work for me.