Best Offset Mortgages

PierremontQuaker03

My mortgage deal is coming to an end soon so I thought I would move to an offset mortgages as me and my wife have quite a lot of savings that are not earning a great deal.
I am looking at 100k mortgage over 20 years - our property is worth 225k. We have approx 80k of savings.
I bank with Santander at the minute.
I am hoping (in theory) that this will be the last mortgage deal I have to do and I stay with this offset until my mortgage is paid off. I hate the fact every 3 years or so changing deals, as I think I cant change jobs so I feel trapped because of my mortgage - some mortgage providers wont give you a mortgage if you have not been with the company long.
Just wondering who the best provider is out there.

getmore4less

Lifetime tracker offset are thin on the ground.


If you just picked a lender that has decent retention deals you don't need to worry about changing jobs.

jackomdj

If you are offsetting £80k of £100k mortgage in reality you will only be paying interest on £20k, so having a slightly higher interest rate isn't so important. Also, this is how ours works, your payment calculations are based on not offsetting, so you will pay it down relatively quickly.

PierremontQuaker03

Is there a calculator that looks at a repayment mortgage Vs Offset Mortgage? Just wondering if there is a threshold of savings / interest rates where one would be better than the other?

Thrugelmir

Any reason for holding that amount of cash ?

AnotherJoe

Thrugelmir wrote: »

Any reason for holding that amount of cash ?

Exactly. Pay off half or more of the mortage with that cash when you remortgage which lowers your monthly outgoings.
With the excess you now have each month, pay some into a pension as you are probably not paying enough right now and some into regular savers that give higher interest rates.

Then, because you have a smaller mortage moving jobs is less of a hindrance as you'll be borrowing a much smaller multiple.,

amnblog

PierremontQuaker03 wrote: »

Is there a calculator that looks at a repayment mortgage Vs Offset Mortgage? Just wondering if there is a threshold of savings / interest rates where one would be better than the other?

Are you saying your options are:

1. Pay interest on £100,000 on a standard mortgage

2. Borrow £100,000, offset £80,000 and pay interest on £20,000

Do you need a calculator for that?

getmore4less

PierremontQuaker03 wrote: »

Is there a calculator that looks at a repayment mortgage Vs Offset Mortgage? Just wondering if there is a threshold of savings / interest rates where one would be better than the other?

a simple ratio using the the 3 rates, debts & savings.

M : mortgage debt
S : standard rate
O : offset rate

C : savings capital
N : net savings rate

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

depending what values you have you can solve for the missing ones