Any Offsets out there?

little_miss_messiah

Hi, haven't posted here in AAAGGGGES
Due to marriage breakdown will shortly be putting house on the market - am a First Direct customer of some 20+ years standing and have been hammering away at the offset mortgage and got the debt down to £60k
I'd love another offset - with interest rates low I currently have £40k of my father's money offset against my mortgage and pay him a monthly interest equivalent to the value of the offset. First Direct minimum income requirement is £50k for their offset product, regardless of the income multiple/LTV unfortunately
Mortgage advisor (Police Mortgages - not whole of market) say I can borrow up to £110k on my sole salary and I should clear £50k from the house sale, so the savings I currently have offset would mean a big reduction in payments - are there any providers offering offsets these days or have they died a death?

Thanks for any help on this

Glover1862

Coventry building society, some execelent rates and good company to deal with. You can apply direct if a relatively simple case. I've looked at. 1.75. % variable for all term with £999 fee 65% ltv. The offset is only 0.1 % more than the standard product.

SavingSteve

Barclays and the whole Yorkshire Building Societies group also do offsets.

Plug your requirements into Moneysupermarkets mortgage comparison and one of the options is to selection an offset.

One thing to consider is, with rate so low would you be better off with maxing out higher interest current accounts and regular savers before hitting the offset.

Sus59

Have you spoken to First Direct? If you have been a good customer for over 20 years they will likely bend their rules for you and would probably also let you port your existing mortgage to your new property. The benefit of an offset mortgage is that you can borrow back to the limit of the original loan even if you have paid some or even most of it off. My income is less than 50K and they agreed to port my offset mortgage nevertheless. I would give them a ring and talk to them. Good luck.

getmore4less

I currently have £40k of my father's money offset against my mortgage and pay him a monthly interest equivalent to the value of the offset.

I do hope your father is declaring the income.

little_miss_messiah

Thankyou all - I'll make enquiries with FD first, but I'm only on £26k so way short of the mark and try the others mentioned.


Dad doesn't need access to his money and wants to help so it suits both of us, the 'interest' I would be paying him goes in monthly to the savings account where the £40k is sat and is also offset, he isn't receiving an income from it, and its 10 years worth of savings for him, He is extremely risk averse and 84 years so an investment product wouldn't be suitable but its sat there in cash in case of emergencies.

dimbo61

YBS offer "friends and family " so Dad can have he own account offsetting your mortgage.