Off-setting - do many people do it?

WindfallWendy

Having come into a bit of money, one option is to pay off a huge amount of the mortgage when the current deal runs out (in 2 years time). However I'm thinking that I'd rather continue to jointly pay off the mortgage with my partner and perhaps go down the offset mortgage route.

My ponderings:
I'm currently shoving money into S&S ISA for long term/higher returns and there will be £80k squirrelled away there by the time I need to remortgage. Assuming it's getting 10-15% return in 2 years time, I'll probably leave it there.

I did some maths on £150-180k offsetting against £220k mortgage and I think it's worth doing, assuming an offset mortgage interest rate of 7-8% It seemed to be suggesting I'd save about £40k in interest. Does this ring true for anyone who uses offsetting?

BUT - if I'm keeping money in my S&S ISA then I may only have £100k to offset and I think my figures were suggesting once the offset value is 50% or less, it's not quite worth it.

Obviously I will reconsider this option when the time comes. A lot can happen in two years!! But I was interested to see nothing much about offsetting mortgages being used to get mortgage free so wondered what the view here was.

Thoughts?

WindfallWendy

Just boinging this one up again in case there are any thoughts. Would even appreciate knowing that people just don't think it's worth doing (which I'm kind of assuming is the case given the complete lack of interest in the thread!!!

newgirly

Sorry I can’t help with the figures, but I’ve used an offset for years as it allows us to make large overpayments and also is our emergency fund, it’s always cost a little bit more but I’ve liked the flexibility 😊