Offset mortgage - fully offset

mje11

Hi
I have an offset mortgage and am in the happy position of having it fully offset by the linked savings account. It's currently on the lender's standard variable rate of 4.99%

I may need to withdraw some money from the savings account soon, so I rang the lender to ask if they offered any fee-free offset mortgages at a lower rate. The adviser told me that there were, but that it was most economical to keep the mortgage on the higher rate while it's fully offset (and to switch to a lower rate if/when I need to withdraw some savings) I don't understand how this could be - he tried to explain with examples but it still didn't make sense to me. Can anyone help me understand?

Thanks
M

getmore4less

Absolute nonsense.

Ask for it in writing and make a complaint.

While fully offset it makes no difference what the rate is.

it might make sense to wait till you need the money if you only want the money for a short term say 2years ish as that will probably be the best rate.

but then locking into a cheap rate now may be better if you think they are going up.


You hear people talking about effective rates with offset, also nonsense.

With offset mortgage all you are doing is borrowing less