Offset mortgage search site

Plus

I'm pondering an offset mortgage for my next remortgage in 9 months time.  However it seems very awkward to compare the current deals out there.  For example many comparison sites (including MSE) don't cover offsets.  I can google around and find a few providers, but it's not comprehensive and often the searches get snagged on 'what is an offset mortgage?' help pages rather than the rates themselves - some of these providers don't actually have offset deals at present.

It's not yet time to go to a broker, so in the meantime is there a public-facing comparison site which show currently available offset mortgages?  Preferably one where I don't have to put in all my personal details etc just to see a table of rates.

housebuyer143

The only lenders I found with offset were.

Yorkshire building society
Barclays

There were one or two more but these two were the most competitive. Barclays only do trackers and ybs only do fixed 

Plus

I'm seeing offsets from:

https://www.familybuildingsociety.co.uk/mortgages/compare-owner-occupier-mortgages 

https://www.coventrybuildingsociety.co.uk/member/mortgages/homeowners/existing-members/product-transfers.html 

https://secure.cbonline.co.uk/personal/mortgages/all-our-mortgages/?products=offset 

http://mortgages.firstdirect.com/mortgage-rates-fees/list-rates 

and those are just the first few pages of my web search for 'offset mortgage'.  But web searches are a terrible way to find financial products.

I found Moneyfacts search has an offset tick:

https://moneyfactscompare.co.uk/mortgages/best-mortgage-rates/ 

but I'm not sure how comprehensive it is.

amnblog

There are perhaps a handful of Offset mortgage providers currently in the UK.

Arranging one without involving a Broker is likely to end it tears. Unless used in the right way they are a poor deal for borrowers.

housebuyer143

There really are only a very small number of lenders in the market for offset.. Its a niche product and so it isn't going to be top priority for a compare site.
If you want to find them all then go to an all of market broker who can tell you who is best to go with. Your list along with Barclays and ybs are probably all the lenders in the offset market and ybs and Barclays are likely the cheapest options.

Plus

Agreed, I don't think it's a good idea to access these without a broker.  However, it's still useful to know the deals because it allows me to do projection.  'If I take out a mortgage for £X and have £Y in the savings account, what will it cost me?  What about £2Y?' While a broker may be able to give me a cost estimate using the stated costs (upfront fee, rate, etc) they don't know how I might use the offset (including my tax position etc etc), and how it's used will strongly affect whether it's a good deal or not.  I can do that projection myself to get a feel for whether it's worth it, and what I should be asking the broker for when I get there.

Good to know that my list is roughly it, at least that's something to go on.  I noticed a number of former offset providers were saying 'sorry we have no offset deals' after the mini-budget - are there any that pulled deals which are yet to bring them back, that I should keep an eye on in case they do?

dimbo61

Ybs is customer direct.
Many  posters on the Mortgage Free website seem to love them I wonder why 👏
I have now had 3 with YBS, Woolwich and Barclays and have saved £ thousands over the last 18 years 
Can't understand why they have not taken off more in the UK.

silvercar

dimbo61 said:

Ybs is customer direct.
Many  posters on the Mortgage Free website seem to love them I wonder why 👏
I have now had 3 with YBS, Woolwich and Barclays and have saved £ thousands over the last 18 years 
Can't understand why they have not taken off more in the UK.

Agreed. Especially if you get to the point where you would otherwise pay tax on your savings, the effective interest rate is very good. There is also the security of knowing the money is there waiting for you if you ever need to borrow. I feel rather spoilt in having had a lifetime base rate + 0.5% for the last decade+.

housebuyer143

dimbo61 said:

Ybs is customer direct.
Many  posters on the Mortgage Free website seem to love them I wonder why 👏
I have now had 3 with YBS, Woolwich and Barclays and have saved £ thousands over the last 18 years 
Can't understand why they have not taken off more in the UK.

Most likely because you need a lot of savings to make it worth while as the interest rate is higher than normal and then the self discipline to not spend it all. 
The numbers dont ways work. I looked into it but with the high interest rates on savings now the higher rate didn't really make it worth it. 
Once I can offset most the balance I'll be taking the offset. I'm not a fan of putting all my money into paying off the mortgage.

ACG

They are a bit of a niche product. I think in 10 years I have done maybe 5. 
Typically they are for limited company directors who bang all of the business profits in the savings account until the end of the tax year, put it back in the business for a few days and then out it comes again I think. 

There are not many of them around, but they are generally through building societies. I think there are a few more but I think the cheapest are usually in the list above. 

Plus

It's actually not so bad. If the Moneyfacts search is to be believed, for 60% LTV I'm seeing about 4% on a fix and 4.3% for offsets.  Depends on product fees, variable rates, yadda yadda, but worth doing the numbers on.

One trick I thought of is to combine the offset with a flexible ISA.  On 5 April, pull out spare savings and move into flexible ISA, on 6 April move back. Then you can maintain a sizeable ISA allowance without having to build it up again at £20k per year.  If you might end up paying off the mortgage with a future lump sum, it can be attractive to maintain the tax shelter.