Keeping our offset mortgage but what to do with the current account and excess savings?

theyoungones4

Hi. Our savings have finally exceeded our mortgage amount so we're in the fortunate position to be able to consider paying off the mortgage entirely. That said, we're in our 50s with 2 kids about to go to uni and we will definitely want to move home at some point. I have a friend who paid off her mortgage only to be told she couldn't get another (small) one when she was ready, so I think we're going to keep hold of the mortgage and just pay the minimal amount for the time being. We bank with Intelligent Finance which is frustrating as the online system is now antiquated so we'd like to move our monthly wages and a few savings pots to another bank ideally. I just wondered what people's thoughts were on:
a) Where we can put the remainder of our money where it will benefit us the most? We've always put our money into the mortgage so have no experience with savings accounts though we do have our pensions sorted out. We're looking for a bank that gives the best interest whilst also being easy to use. (I.F. don't even have a contactless card and there's no app. We do find multiple pots really helpful to keep track of budgeting and this has worked well with I.F.)
b) Whether we're doing the right thing keeping the mortgage with the offset funds.

All thoughts welcome. Thanks in advance.

Brie

We have a flexi mortgage (much the same as an offset but it's all one account) and didn't close it when the balance got to zero.  This is in part because it's our current account as well as our mortgage and frankly I couldn't be asked to move accounts. 

But also because the OH kept talking about equity release some time in the future.  Now frankly I don't really like the idea of equity release because of the costs and extra hassles that seem to be involved but our flexi mortgage essentially gives the same facility - for now at least.  It's been handy over the last year when income has been less than in the past and moving money from other accounts hasn't yet been possible.  It sounds like this might be a handy thing for you as well.

michaels

What rates are people paying on these mortgage linked accounts - could you make a profit by drawing down on the mortgage and putting the money into high interest savings accounts if they are paying higher rates?

400ixl

Isn't Intelligent Finance closing current accounts by the end of the year anyway? So will you need to move your banking side anyway?

https://www.moneysavingexpert.com/news/2023/05/current-account-bank-closing-if-intelligent-finance/#:~:text=Intelligent Finance will close all,you need to do below.

Personally I would always have more than one current account, so maybe take advantage of switching to one you will get paid to do so as per the link above, then look for one which has a savings account element that pays a good easy access interest rate. Something like Chase may suffice there.