Offset mortgage advise

schander

Hi all,

Our current mortgage deal is coming to an end on teh 31st July and I need some advise on new mortgage. The current mortgage is at 5.14% it was base rate tracker interest only with Kent and Reliance. The outstanding balance is 175K on house worth 250K. We have money in a buy to let. Generally we have about 2K spare at end of each month.

I would really like to get a flexible/offset mortgage. I have been offered a flexible one with the A+L at Base -0.02% for 2 years and then only 0.99% above for the term. This is good but I don't really want to re-mortgage in 2 years time.

The other one is the Hinckley & Rugby, which is Base+0.15% for life and thats an offset however they don't have internet banking, so everything would be done by phone.

The question i have would i better just getting a good discounted for 2-5year and then remortgaging or try and find a offset, with a reasonable rate?

Thanks
Satpal

Rick62

For Offset Intelligent Finance are very good. Not necessarily the best rate, but excellent features, allowing as many savings/current accounts as you like (max 20), savings as reduced payments or reduced capital, internet banking etc. I think they have a lifetime Offset Tracker at 0.34% over base.

*EssEncE*

I would also enquire with the One Account.

Rick62

OneAccount tends to be expensive and rather than Offset is just one account (like a massive overdraft) which personally I would find a difficult discipline.

toonfish

Rick62 wrote: »

OneAccount tends to be expensive and rather than Offset is just one account (like a massive overdraft) which personally I would find a difficult discipline.

I agree with this - clever marketing campaigns have let folk think they are getting a good deal.

schander

Thanks for your replies. I think that I'm going to go for the IF Base + 0.35% for life.

Thanks
satpal

schander

Oops,
I forgot to read the fine print. I just realized after reading the documentation that came through that i'm tied in until 01 Sep 2009.
I was wondering if this mortgage was still good?
What do you think chances of the interest rates going up 2-3% in that time frame?? I know it's a bit of a crystal ball question but people here seem more clued up than me

Thanks
satpal

CopperPlate_2

Have you tried first direct. They often have offers on their Offset deals. The deals at the moment are reasonable - 5.89% for 2, 3, 7 or 10 years (think the 10 yr is different though). Offset fee of £299 and Fixed Rate fee of £495 so not particularly cheap in that regard, but you can have as many accounts linked to the mortgage as you like.

homer_j_3

you say you have money in a buy to let and a about 2k spare at the end of the month. How much are you looking to offset?