Off set mortgages

Prestwickboy2

Hi are off set mortgages a better way to go than an ordinary fixed rate. I have about 10 k to put in the offset account ?

grumiofoundation

Depends on the interest rates and how much is left on the mortgage.

dimbo61

I am a huge fan of Offset mortgages having had 3 so far with YBS, Woolwich and Barclays.
The rates will be higher than a normal fixed rate mortgage but they offer more flexability and the chance to build up funds in the Offset accounts.
Very popular with the Mortgage Free gang and for good reason.

grumiofoundation

dimbo61 said:

I am a huge fan of Offset mortgages having had 3 so far with YBS, Woolwich and Barclays.
The rates will be higher than a normal fixed rate mortgage but they offer more flexability and the chance to build up funds in the Offset accounts.
Very popular with the Mortgage Free gang and for good reason.

Since the rates are higher they are not really a good idea for someone with a large loan/low savings - hence my comment above.

MWT

We loved our Woolwich offset mortgage, it was the flexibility to reduce the interest without actually having to over-pay that we found so useful over the 25 year term.

Kept our options open yet still allowed us to reduce the interest paid with our cash balances.

Not one for everyone for sure, but if you have the assets but want the flexibility that offset brings they are a good choice in my opinion.

unkle

Scottish Widows do offsets with some really good rates.

Great product, I had one for years and worked on the original project for The Woolwich.

Prestwickboy2

Thanks very much for your help