Offset mortgages

330d

I'm looking for an offset mortgage and hardly any lender does them with reasonable rates.

Does anyone know which lender offer mortgages with offset facility?

id311299

330d said:

I'm looking for an offset mortgage and hardly any lender does them with reasonable rates.

Does anyone know which lender offer mortgages with offset facility?

How about this as a starting point:

https://www.money.co.uk/mortgages/offset-mortgages.htm

P.S. It would be great if the MSE Mortgage Best Buys tool would offer the ability to search for this type of mortgages as well!

330d

id311299 said:

330d said:

I'm looking for an offset mortgage and hardly any lender does them with reasonable rates.

Does anyone know which lender offer mortgages with offset facility?

How about this as a starting point:

https://www.money.co.uk/mortgages/offset-mortgages.htm

P.S. It would be great if the MSE Mortgage Best Buys tool would offer the ability to search for this type of mortgages as well!

Yes thanks I've seen that webpage. But not every lender is listed there such as Coventry building society who have the best rate I've found.

Which is why I started this thread, if anyone knows any other lenders offering offset.

Thrugelmir

Offsets need to be commercially viable for lenders. At record low interest rates they become competitively unviable. 

GreySpike

Hi 330d

I recently went through a very long conversation with Coventry BS to show them that their calculation for Offset Mortgages is incorrect. It overstates the benefit of the offset during the period when the amount in the offset meets or exceeds the mortgage i.e. at the end.

That may or may not make a big difference to you, but in my case it meant that although they 'advised' me to go for the offset in fact the standard fixed rate was cheaper over the lifetime of the mortgage.

Hope that helps and doesn't just add to your worry.

K_S

@330d These are all the lenders that show up on my sourcing as offering offset products as of today. No guarantee that it's accurate or complete (at least missing First direct unless they no longer do offsets or never did!), but hopefully gives you something to research.

dimbo61

YBS offer Friends and Family
Barclays also do Offset mortgages.
I have had Offset mortgages with both YBS and Barclays.
Are the rates good now ? 
For some people Offset mortgages are brilliant 

Thrugelmir

GreySpike said:

Hi 330d

I recently went through a very long conversation with Coventry BS to show them that their calculation for Offset Mortgages is incorrect. It overstates the benefit of the offset during the period when the amount in the offset meets or exceeds the mortgage i.e. at the end.

That may or may not make a big difference to you, but in my case it meant that although they 'advised' me to go for the offset in fact the standard fixed rate was cheaper over the lifetime of the mortgage.

Hope that helps and doesn't just add to your worry.

My last mortgage an offset, had no benefit for the savings account exceeding the mortgage balance. The mortgage balance was in effect the cap. Over which savings were withdrawn and deposited elsewhere. 

jenni_fer

We've got a Coventry Offset, there aren't many with viable rates out there!

400ixl

First Direct also do Offset mortgages I believe.

330d

Thanks for all the replies.

At the moment, Scottish Widows have the best rate for offset. 5 year fixed at 2.5%. Disappointingly it's 2.3% for new purchases but for remortgage it's 2.5%.

Coventry was 2.35% last week but has now gone up to 2.6%.