Endowment Confusion

AnotherJoe

theshed wrote: »

Thanks Joe
So much to consider, which is why I so often put off financial decisions.
Offset interest rate is not so good in comparison to repayment but various payments involved in changing may wipe out possible gains.
We would also be committed to higher repayments whereas now we can make voluntary overpayments bringing the balance down.
Not a higher rate payer but, Pension is good idea.
For now money can stay in offset account...
Thanks

At least with it in the offset it is reducing your interest paid tax free. Is there a time limit after which the penalties for changing no longer apply at which point you might move away to a 'standard' mortgage??

Also, no reason you have to be to locked into higher repayments, for example as long as there are no restrictions on overpayments, take (say) a 15 year mortgage even though you'd like to pay off in 10, and then overpay, and you always have the fall back of the level of 15 year payments.

I suppose that is a few more moving parts to make a decision harder

theshed

Yup ! That's another spanner in the mix ! :eek:
Currently average monthly payment is £380
And at present we can afford to overpay £100/week
From what I have seen so far I could save almost 1% if I can change to another offset.
Maybe if we can change that will be best, but offsets do not seem to be advertised much.
Thanks