Offset mortgage, end of fixed rate

katiejaned

Hi all 😁 We’re in a really fortunate position to have a very low mortgage outstanding (£16k) and have it fully offset with savings, so minimal interest.  Our fixed rate ends in July, so will move to standard rate - currently 4.74% and an extra £17 pm.  

The mortgage company have 3 fixed rate mortgage products available to switch to that are fee free - am I right that it’s a no brainer to switch again - for certainty? And would you switch for 2 / 3 or 5 years? The difference in cost per month is £2

thanks in advance x

johnbhoy70

Funnily enough i'm not long off the phone to them and confirmed i wanted to go ahead with the 1.99% for 2 years i booked for my offset at the start of the year. It was a fee free deal.

We've about 12k mortgage showing as outstanding and about 20k offset against it. However, in reality 10k of that money is the kids built up over the last few years from birthdays and generous grandparents. We also have abut 7k to clear on a 0%  BT card that's up in November so when you take account of that we've about 9k mortgage to clear. 

I've been pretty lazy in the last while about finding a home for the excess £8k that is gaining no interest but with savings rate in the last few years it didn't seem worth the hassle. I might look at savings rate later in the year if i can prolong the 0% deal on the card. 

I'm guessing fully offset at the moment is still the way to go as i would have thought savings rates would still have a long way to go to make them beat offsetting. 

ps- sorry for highjacking your thread. 

jenni_fer

We're letting ours roll, on the basis that as we are fully offset it's costing us nothing at all so the rate is irrelevant.
We are looking to move so it felt like the best option.