Is it worth keep trying for offset mortgage or no chance?

shop-to-drop

Would really like an offset mortgage to move home. The flexibility would really suit us and be more tax efficient, help with budgeting and we are disciplined enough.

However, first direct have turned us down although they will loan us the amount we want on a repayment basis.

We have an appointment with HSBC our current provider next week but wondering if it worth looking at any further or giving up on?

Is it worth seeing an independent mortgage advisor or would they be unlikely to be able to help? I guess all the tightenings up have killed this for us.

amnblog

What you mean is you asked FD for an interest only offset mortgage and they said 'no'.

Now you are booked to go and ask HSBC the same question?

shop-to-drop

I have an appointment with HSBC to see what mortgages they will offer us to move home. Meanwhile I phoned FD asking about their offset, they said they would do a mortgage assessment to see if they could offer us a mortgage. They offered us one but it is a repayment mortgage so not our preferred type.

Was wondering if HSBC also only offer us a capital and repayment is it worth going elsewhere or is the criteria pretty much the same whoever you go to.

We would go the Capital and repayment route but as a significant amount of our income is through bonuses and we have other lump sums coming in the next couple of years through Share save scheme and an inheritance, we also want to keep a decent amount of savings for security we would prefer an offset. Is that any clearer?

getmore4less

Is a repayment based offset going to be a problem?

You set the term long enough to keep the contractual payment low and over borrow to create an offset buffer to start.

egoode

I doubt you will have much luck with HSBC if you have already asked First Direct as HSBC own First Direct so they will have the same criteria.

It's a bit unclear though are you looking for an interest only mortgage with an offset option or are you looking for a repayment mortgage with an offset? There's a lot of repayment mortgages with offsets but there are hardly any interest only mortgages these days so if that's what you are looking for you may struggle to find one.

Thrugelmir

Why is interest only more tax efficient than a repayment?

dimbo61

HSBC do interest only mortgages but you need 50% deposit
You will find a normal repayment offset mortgage would work for your needs.

Mokka

Shop-to-drop, I don't think HSBC offer offset mortgages. They do interest only but the criteria are extremely strict- basically if you want this mortgage because you can't afford a repayment one then forget about HSBC. They will only give it to people with guaranteed high income/btl property owners etc.
They will want to see evidence of your bonuses. THey will also insist that you keep substantial savings 'just in case' unless you take their (expensive) insurance with a REPAYMENT mortgage. Maybe you should consider a repayment with penalty-free overpayment option.

I am sure Santander does an offset (repayment).

Offset mortgages are tax efficient, interest only are not.

Not everyone thinks offset mortgages are such a great deal:

http://www.lovemoney.com/news/property-and-mortgages/mortgages/16767/offset-mortgages-wont-save-you-money

I have a feeling you need a broker to get your head round the best options for your circumstances.

getmore4less

Mokka wrote: »

Offset mortgages are tax efficient,

Just a side effect of the flexible borrowing arrangement meaning you don't have to keep asset elsewhere.

They offer no direct tax efficiencies

The real savings come from just borrowing less.