First Direct Life Tracker?

djlester_2

Hi all,

My current mortgage deal will be coming to an end soon - It's interest only, £126k on a house currently worth at least £300k - I've been in the house a while!!

Anyway, I have a savings plan coming out next year which should pay off just under half of the mortgage. But I can see some potential life changes coming up (kids, wife off work to re-train to be a teacher etc.). I am also considering using the savings to improve the house - the biggie being a loft conversion, but also new windows and a car port.

So, I was looking at an offset mortgage. I am already with First Direct, and their rates don't look too bad, and I like them as a bank. The life tracker for a £126k mortgage would base rate +0.49%. But if I upped the borrowing to over £200k, then I get a rate of base rate +0.34%. Joint salaries suggest this would be possible, though my wife has a buy-to-let mortgage in her own name for the flat she bought before we met.

My idea - get a mortgage of £200k, on the premise of using the additional funds to pay for a loft conversion, and to pay off some additional debts (which I don't have...). Once I have the mortgage, I can then put back any spare cash, and my savings plan on top of this. I can draw down on this spare cash if I need to while my good lady is re-training to be a teacher, or just leave it.

Does anyone have any thoughts? Either on the grand plan for the £200k mortgage or the First Direct Life Tracker mortgage? Would anyone suggest an alternative mortgage type that might suit my needs?

Many thanks,
David.

djlester_2

Is it wrong to respond to one's own post?!?

Just realised that I completely mis-read the website - The life tracker mortgage is not an off-set mortgage.

I think my other principle still holds regarding the offset mortgage - I'll have to do the sums again though with the higher rates.