Which lenders offer offset mortgages?

housebuyer143

Deedoodee said:

amnblog said:

housebuyer143 said:

Deedoodee said:

amnblog said:

Because they are complex product that are priced at a premium over standard products. Therefore, good advice is essential.

Thanks. I’ll consult a broker first. Are there any particular pitfalls? I know the interest rates are higher and I’ve worked out the extra cost and interest lost against interest saved. 

That's it then really. As long as you have worked out out and you are happy then I don't see a problem. YBS is direct only so you can't use a broker fyi, but they have advisors who you will need to speak to prior to applying which will let you know if it's suitable.

..and what will the YBS Adviser tell you about deals from other providers in the market?

Would a broker tell us about YBS is it’s direct only? What makes them more complex besides the interest offset vs interest opportunity cost? 

No they won't. They can only tell you about accord which is the sister company and the rates are normally higher than YBS 
If you know the want offset then just go direct. You don't need a broker for everything, no matter what people on here will try and tell you. 

amnblog

The problem with going direct to a lender? "A little knowledge is a dangerous thing" - Alexander Pope

housebuyer143

amnblog said:

The problem with going direct to a lender? "A little knowledge is a dangerous thing" - Alexander Pope

They have advisors there who only deal with their own products, so it's not exactly going in blind. You are speaking with a knowledgeable person who only happens to sell their products, they are going to tell you if offset doesn't make sense.

silvercar

In my mind, and I am someone who has sometimes used a broker and sometimes not, there are 2 parts to getting a mortgage:
1. Will they lend the money
2. is it a good deal for me personally.

if you are confident on point 1, eg LTV, property type etc and have the necessary income and credit rating to secure the mortgage then the focus is on point 2. So for offsets it is a crystal ball measure of how well you will use the offset in the future. If you are confident that you will use the offset facility to your advantage then you can go it alone, if you aren’t so sure then a broker could help.

For what it’s worth I have an offset, and have used the offsetting facility to good use over the years. 

silvercar

Deedoodee said:

amnblog said:

housebuyer143 said:

Deedoodee said:

amnblog said:

Because they are complex product that are priced at a premium over standard products. Therefore, good advice is essential.

Thanks. I’ll consult a broker first. Are there any particular pitfalls? I know the interest rates are higher and I’ve worked out the extra cost and interest lost against interest saved. 

That's it then really. As long as you have worked out out and you are happy then I don't see a problem. YBS is direct only so you can't use a broker fyi, but they have advisors who you will need to speak to prior to applying which will let you know if it's suitable.

..and what will the YBS Adviser tell you about deals from other providers in the market?

Would a broker tell us about YBS is it’s direct only? What makes them more complex besides the interest offset vs interest opportunity cost? 

You can have an initial conversation with a broker, along the lines that you are particularly interested in an offset mortgage and you’ve seen the YBS deal at x%, could they do anything better? That way you aren’t wasting anyone’s time.

ACG

housebuyer143 said:

amnblog said:

The problem with going direct to a lender? "A little knowledge is a dangerous thing" - Alexander Pope

They have advisors there who only deal with their own products, so it's not exactly going in blind. You are speaking with a knowledgeable person who only happens to sell their products, they are going to tell you if offset doesn't make sense.

https://forums.moneysavingexpert.com/discussion/6478250/nationwide-mortgage-salary-sacrifice-car-lease

Nationwide staff telling applicants to put down a car lease as travel expenses because its not on a credit report...
I cant help but think there is no way they are this numb and its just another application to hit whatever target, but that could be me just being cynical. 

Deedoodee

silvercar said:

In my mind, and I am someone who has sometimes used a broker and sometimes not, there are 2 parts to getting a mortgage:
1. Will they lend the money
2. is it a good deal for me personally.

if you are confident on point 1, eg LTV, property type etc and have the necessary income and credit rating to secure the mortgage then the focus is on point 2. So for offsets it is a crystal ball measure of how well you will use the offset in the future. If you are confident that you will use the offset facility to your advantage then you can go it alone, if you aren’t so sure then a broker could help.

For what it’s worth I have an offset, and have used the offsetting facility to good use over the years. 

Thanks. We’ll see a broker and see what they say. YBS is the only one I’ve seen with no product fees.

when you say use the offset to our advantage, is there something besides juggling the costs? 

I’ve modelled various interest rates scenarios (accounting for tax on interest earned ), cash flow and expected large expenses in the next two years in an excel. 

housebuyer143

ACG said:

housebuyer143 said:

amnblog said:

The problem with going direct to a lender? "A little knowledge is a dangerous thing" - Alexander Pope

They have advisors there who only deal with their own products, so it's not exactly going in blind. You are speaking with a knowledgeable person who only happens to sell their products, they are going to tell you if offset doesn't make sense.

https://forums.moneysavingexpert.com/discussion/6478250/nationwide-mortgage-salary-sacrifice-car-lease

Nationwide staff telling applicants to put down a car lease as travel expenses because its not on a credit report...
I cant help but think there is no way they are this numb and its just another application to hit whatever target, but that could be me just being cynical. 

Mortgage advisor or call center advisor? The first I would expect to know the lending criteria inside and out, the latter not so much.

ACG

housebuyer143 said:

ACG said:

housebuyer143 said:

amnblog said:

The problem with going direct to a lender? "A little knowledge is a dangerous thing" - Alexander Pope

They have advisors there who only deal with their own products, so it's not exactly going in blind. You are speaking with a knowledgeable person who only happens to sell their products, they are going to tell you if offset doesn't make sense.

https://forums.moneysavingexpert.com/discussion/6478250/nationwide-mortgage-salary-sacrifice-car-lease

Nationwide staff telling applicants to put down a car lease as travel expenses because its not on a credit report...
I cant help but think there is no way they are this numb and its just another application to hit whatever target, but that could be me just being cynical. 

Mortgage advisor or call center advisor? The first I would expect to know the lending criteria inside and out, the latter not so much.

I am sure it said a mortgage adviser and their manager. 

silvercar

Deedoodee said:

silvercar said:

In my mind, and I am someone who has sometimes used a broker and sometimes not, there are 2 parts to getting a mortgage:
1. Will they lend the money
2. is it a good deal for me personally.

if you are confident on point 1, eg LTV, property type etc and have the necessary income and credit rating to secure the mortgage then the focus is on point 2. So for offsets it is a crystal ball measure of how well you will use the offset in the future. If you are confident that you will use the offset facility to your advantage then you can go it alone, if you aren’t so sure then a broker could help.

For what it’s worth I have an offset, and have used the offsetting facility to good use over the years. 

Thanks. We’ll see a broker and see what they say. YBS is the only one I’ve seen with no product fees.

when you say use the offset to our advantage, is there something besides juggling the costs? 

I’ve modelled various interest rates scenarios (accounting for tax on interest earned ), cash flow and expected large expenses in the next two years in an excel. 

What I mean is that you will actually put some savings into the offset, rather than it being an unused "nice to have".