off set mortages

bury_2

Hi,

I have been looking around for an off set mortage that would allow me to pay interest only some months and extra the next etc. The cheapest I have found is Coventry building society at .10% of the base rate.

Im basically looking for the most flexable mortage possible and the idea of ofsetting appeals to me as some months I have a thousands coming in and others hardly anything. By offsetting it would reduce the interest but give me access to it if the next month was tough money wise.

Thanks.

homer_j_3

Offset accounts are normally more beneficial to people who have a lumpsum of savings that can offset the interest.

If you are looking for a mortgage with flexible features then you could look to find a standard mortgage with flexible features like unlimited overpayments and underpayments

JoeK_3

Hi Bury, I'm extremely concerned about the concept of what you are trying to do.

From your post I can only deduce that you are either self employed or commission based.

This is a high risk strategy. By taking this concept on you are leaving yourself open to trouble in the future.

What happens if interest rates increase?
How will you pay your mortgage?

Although no one can predict this, interest rates are due to increase in the near future and everytime this happens, you will struggle even more.

You need to speak to a professional, who can maybe create a financial buffer for you to carry you through the bad times.

My advice to you is, to get some wool on your back as soon as possible.

JoeK

bury_2

I will explain:

When I say I have nothing coming in I meant that I only have around 2k a month coming in. I have investments of over a 100k in other projects that I could use if necessary.

I would be using my fathers business acount money ( around 40 - 80k) for the offsetting and giving it back to him as and when required. I would also be taking in lodgers so you see what I mean when I say some months would be better than others.

I only wanted to know if anybody had seen a better rate than that.

I have no kids or partner to worry about and the ltv of the mortgage would be under 75% of the mortage without my fathers buisness acount money, we just agreed that it would be useful to use it in the circumstances as he dosen't need it all the time.

JoeK_3

Phew!!! Thanks for the clarification.

I feel better now.

Good old Father.

The Coventry deal seems ok.

Check out http://www.moneysupermarket.com for a comparison.

JoeK

MAK

off set mortgages are usually good for people who earn £80000 plus a year and have savings of £40000 plus.