Offset Mortgage

bigbeary

1.84% fixed for 5 years from first direct?  Why can't I see that rate?  I am with them, and remortgaging in a few weeks.  I have 30 percent ltv and around 25k in savings and the quote I get is 3.19. Am I missing something fundamental here, as I think offset should suit me but I can't make it add up financially

VA2020

Thanks all, just seen the additional comments. Very helpful, especially the calculations! And advice re experiences with offset.

Its with Coventry bank and it's not a replayment mortgage, so will be making monthly repayments on the mortgage.
 

VA2020

Sorry * it is a repayment mortgage not an interest only 

dimbo61

Sorry bigbeary I was looking on Google and found an old rate from First direct from 2016 ☹️ which was fixed from 5 years.
The poster has found a deal with Coventry which is a good deal 

dimbo61

https://www.coventrybuildingsociety.co.uk/consumer/mortgages/offset-mortgage/mortgage-rates.html

getmore4less

Check  the fee option because looking at Coventry link

offset 5y fix  50% LTV
1.89%  £0 fee
1.59% £999 fee 
on £95k interest only that is  ~£1,425 saved (more than the fee)

if your difference is also 0.3% you would need to be putting £1000pm(including mortgage payment) into the account to be better of with the no fee over 5 years.
and since you are taking out some of your offset funds within a year or so  it will be a more (£110k it is over £1,500pm

johnbhoy70

I think this is probably the best place to park this. I'm with FD and have a £50k mortgage. In reality when all things considered i'm probably sitting on a £20k mortgage give or take. Last couple of years i've used interest free c/cards on purchases and will soon need to start balance transferring  or just clear them which i can do. However, i've just used them until now to keep as much offsetting as possible. I know, for me, the saving is neglible but my thinking is to continue and maybe clear them when or if more surplus cash becomes available. Any thoughts?? Obviously i'm aware i need to keep my eye on credit cards compared to my available cash to clear. 
They might not be what they were but if you can stay in control i think offset can offer a great deal of flexibility imo.

getmore4less

That's called stoozing

johnbhoy70

Cheers.
Aye thought it might have been a form of slow stoozing from memory. Messed about with stoozing a few years ago but the boat had truly sailed i think and it personally wasn't worth the hassle for the small gains.