Offset mortgage - worried man

zagubov

getmore4less wrote: »

When the op took out his offset I recall FD offsets being base rate life time trackers not the current trend of short term deals.

In that case s/he'd better stick with it. Unless the base rates rise, in which case a fix might be the better option.

shawie60

Hi Guys i appreciate all the responces I got and the advice. I finaly got hold of a guy who was really helpful on saturday and he explained that even tho we have an offset morgage we're paying both the interest (currently about £35 approx) a month and part of the capital as well. (were currently paying £720 in total per month.) the horror stories in the news are with people who have only been paying the interest (which for the life of me I cant understand) and thast why thyre in trouble. our curent interest rate is 1.25% and we have a offset loan of £5380. and a morgage of £23,400. We took the morgage out in Aug 2004 over a 15 year period. so according to him were well on track to be cleared in a few years.
Once again many thanks to all that responded, I really appreciate it.
glenn

ViolaLass

I'm bemused. Didn't the statements show that the amount you owe was decreasing each year?

zagubov

shawie60 wrote: »

Hi Guys i appreciate all the responces I got and the advice. I finaly got hold of a guy who was really helpful on saturday and he explained that even tho we have an offset morgage we're paying both the interest (currently about £35 approx) a month and part of the capital as well. (were currently paying £720 in total per month.) the horror stories in the news are with people who have only been paying the interest (which for the life of me I cant understand) and thast why thyre in trouble. our curent interest rate is 1.25% and we have a offset loan of £5380. and a morgage of £23,400. We took the morgage out in Aug 2004 over a 15 year period. so according to him were well on track to be cleared in a few years.
Once again many thanks to all that responded, I really appreciate it.
glenn

That's an exceptionally low rate of interest. Is it a lifetime rate or a fix?

AnotherJoe

I had the same rate until recently (when I paid off my mortgage). It was also an offset (Barclays) amd it was a tracker, fixed at 0.75% above base rate, hence 1.25%. It would have been 1% now. They never thought BR would come down so much (not did I !) , worked out very well for me.

getmore4less

zagubov wrote: »

That's an exceptionally low rate of interest. Is it a lifetime rate or a fix?

probably lifetime tracker, but no where near the best FD and others were doing, there were rates as low as base + <0.2% going at some points, there will be people out there with mortgage rates under 0.5% now.

Nebulous2

I knew someone with a large loan at BR minus 0.5 per cent. When rates dropped the company said it wouldn't go negative, but left it at 0 per cent. We haven't talked about it for some time, but she could still have it.

getmore4less

quite amusing looking at posts from around 2007-2009 as rates were dropping, people saying base+<1% trackers(fixes were higher) are no good you need to be fixing rate will be going up soon.

silvercar

getmore4less wrote: »

quite amusing looking at posts from around 2007-2009 as rates were dropping, people saying base+<1% trackers(fixes were higher) are no good you need to be fixing rate will be going up soon.

Exactly us.

At the end of 2002 we took a lifetime deal of five yr fix at 4.99% followed by base rate + 0.75% tracker. At the time the lender said we would want to come back to them and fix again after the 5 yrs. We haven't felt the need :T