To offset or not to offset!

itsamystery_2

I would like to get rid of my mortgage ASAP but I don't know what the best thing to do is. Do I keep my current offset? Change to tracker? Or change offset?

This is my current situation:

• £67k mortgage over 16 years with IF - property worth £170k. This was taken out 5 years ago when I had more savings available. Current interest rate is 7.1% (I think).
• I have had a mortgage offer from Woolwich on the 6.1% tracker rate over 15 years (I snook in before they closed it) but I don't know whether to change.
• I have £4k savings available and could probably make £100 month overpayment from @ £27k income.

Any advice would be welcome!

rockrat

see if you can change your mortgage with IF.
i have just remortgaged to IF (completed 2 weeks ago) and got 6.09%, the same as your looking to get with woolwich.
IF currently do a 2 year offer for 5.99%.

the overall feees may be cheaper by staying in IF.

Also, the reason i chose them was that IF allow ISA's to be offset.

the argument to your title question, offset or not is the same. Any overpayment or deposit into an offset savings account equals the same thing.

tomtom121

Hi

I've just remortgaged to an offset with First Direct - 2 year fix at 5.99% and only a £99 arrangement fee