offset mortgage

getmore4less

Offset rate will be higher so more expensive for the same cash put in.

ChrisK....._3

The benefits of offsetting lies in how much you offset in savings, you're never going to earn interest at the rate you have to pay it so offset every single penny you (and your partner) have, the more savings the greater the benefit but even a deposit account that just had your salary in could do a lot of work reducing your interest and therefore reduce your term. Even a few quid left in your current accounts each month will come of your interest payments and reduce your term.

I just wish we could offset our savings against my son's mortgage. Im guessing that will come eventually

dd95 wrote: »

hi chris,

we would look to repay the repayment mortgage (85k) in 8-10 years with 900 paid per month, how would this compare to an offset mortgage? thanks

getmore4less

ChrisK..... wrote: »

I just wish we could offset our savings against my son's mortgage. Im guessing that will come eventually

Barclays used to allow it but they dropped that option a long time ago.

Barclays do have family springboard mortgages which is structured to allow some family funds to help get a mortgage when they don't have a deposit.
Not really an offset as it pays interest at base+1.5%


Unless some one know of another the only lender currently allows 3rd party offset accounts is Yorkshire BS with Offset Plus product.

savers
Borrowers


There are savings options that pay more than the best mortgage rates so offset is not always the right thing even when you have a lot of savings.

ec9wrr

getmore4less wrote: »

Barclays used to allow it but they dropped that option a long time ago.

Barclays do have family springboard mortgages which is structured to allow some family funds to help get a mortgage when they don't have a deposit.
Not really an offset as it pays interest at base+1.5%


Unless some one know of another the only lender currently allows 3rd party offset accounts is Yorkshire BS with Offset Plus product.

savers
Borrowers


There are savings options that pay more than the best mortgage rates so offset is not always the right thing even when you have a lot of savings.

Very true. I’ve just remortgaged away from offset. The margins were too tight. The higher rate for offset products mean that it made no sense.

jackomdj

ChrisK..... wrote: »

I just wish we could offset our savings against my son's mortgage. Im guessing that will come eventually

Our C&G offset lets us use friends and family. It is a great product, but part of their 'legacy products' ie they no have the product. I phoned up to get the forms for adding a new account a few months ago and the person i originally spoke to hadn't even heard of the product!

dimbo61

We have used the friends and family option with YBS to save a huge amount in Interest and pay off the mortgage early.