Best Offset Mortgage Deals?

Morgage_Confused

Ive been wanting to re-mortgage to an offset mortgage(due to spare cash and crap isa rates) and was looking at the best rate 5 year fixes or the best rate trackers.
Can anyone beat coventry building society offsets?
5 year fix at 2.89%
Lifetime tracker at 1.99%

These seem extremely good rates, am I missing something? Does anyone know if these mortgage accounts are managed online as theres no branches near me?

Thanks
ltv 30%
mortgage 130k
house 390k
earnings 80k
no depts loans ccj

getmore4less

what fees and savings and regular surplus.

1.99% lifetime tracker is good what's the best non offset tracer deal.

Looked it up 1.89%(fee £300) nice low margin. Offset fees same £300

the calculation for savings needed to break even
(net savings more than the mortgage obviously you just save)

the equation starts with
M : mortgage debt
S : standard rate
O : offset rate

C : savings capital
N : net savings rate

(M*S) - (C*N) == (M-C)*O

which simplified is

C(O-N) == M(O-S)
which become a simple ratio check of the mortgage saving against the rate differential

C/M == (O-S)/(O-N)


http://www.coventrybuildingsociety.co.uk/online-services/features-and-benefits.aspx
might help the other part of the question

amnblog

The maths are not the prime factor for most offset borrowers.

It is the flexibility that drives most borrowers to use them and the extra cost is value for money for that flexibility.

Whether Coventry are offering the best product for you right now is a question a good broker can answer once they have all the facts.

Morgage_Confused

I like the idea of offset mortgages and have a decent amount to offset and save monthly. I already overpay my existing tracker, which isnt an offset at 2.68%. I like the idea of ofsetting everything in one place and having the cash working for me whilst still having access to it just in case.

Should I definately see a broker as affordability wont be an issue at 1.5 times salary. And Ive been scouring all the various comparison tables and cant find anything to better this product.
How will a broker benefit me. And if I get one on board should I just tell him this is the mortgage I want.

Thanks for any advice

getmore4less

You could look at the feature sets of each lender.

Eg Barclays you can offset ISA money and with a joint mortgage you can offset individuals accounts. Can also have 12 offset accounts.

YBS you can offset money in accounts in other peoples names.

Etc.

amnblog

Morgage_Confused wrote: »

How will a broker benefit me. And if I get one on board should I just tell him this is the mortgage I want.

A broker will stop you making a mistake.


It is better to tell your broker why you want it rather than what you want - your broker can then decide the best route based on your objectives rather than assumptions.

Spangled

Hi Morgage Confused

Is that Coventry offset tracker a base rate tracker? ie BR + 1.49% (so current rate of 1.99%)

Looking on their website:

http://www.coventrybuildingsociety.co.uk/mortgages/AccountSummary.aspx?socseqno=1&prodCode=OFL39&Company=1

it says the product is "Variable rate for term, currently 1.99%" - but doesn't explicitly say the rate tracks the BoE base rate.

If the rate was at the whim of the building society, I'd be less tempted.

Maybe it says it's a base rate tracker somewhere else on the site?

Cheers.

amnblog

It is a variable - not a tracker.


Just the kind of issue you can avoid by using a broker.

Morgage_Confused

So thats not a boe+ tracker. How is the rate set. I cant find any info on their website.

Variable rate for term, currently 1.99% ??

Very tricky so they can change it on a whim if even the base doesnt change. See I have a similar problem right now, my "tracker" with Barclays is also not stricktly a tracker either. They have their own Barclays base rate which isn guaranteed to follow boe.

Damn back to the drawing board.