Fixed rate or offset with overpayments.

sebtomato

It's pointless to make overpayments with an offset mortgage, as you may as well keep the money in a linked account, meaning it's offsetting the interests but is still available.

Once thing you need to consider is how your cash is working with an offset mortgage compared to other investments.

For instance, some of your £40k in savings could probably earn more than the offset mortgage rate offered. If the mortgage rate is 3%, can you invest your money to earn more than 3% after tax (in which case the offset mortgage is becoming pointless).

I used to have a large amount of money in savings offsetting my mortgage (2.5%) rate, but I have now invested most of that money in various investments beating that rate by far. I am only keeping some minimum cash that would be required at very short notice