Offset mortgage, variable rate, no fee. Is there one?

thingswerentthisbadinmyday

Morning all.

We’re looking to add a small amount to the mortgage, which is currently fixed rate. Once the new & old balances are combined, we’d only be about 10% LTV.

We’ve previously had an Offset Mortgage but switched to a low fixed rate several years ago. Now keen to go back to an offset as we know exactly how they work.

We’ve trawled through numerous B Socs and Banks’ websites but are struggling to find something suutable. We could of course go to a broker, but not keen unless we have to.

As per the title. Would anyone know of a current Offset mortgage, variable rate, no fee?

Thanks

ACG

Im not sure if I should be answering…

According to our sourcing system, there are no offset mortgages, with variable rates and no fee.

You can have any 2.

Fixed and no fee.

Variable and a fee.

See how much time a broker could have saved you?

There are other potential problems - at 10% what sort of loan size are you talking? If less than £25k that might bring additional complications.

thingswerentthisbadinmyday

https://forums.moneysavingexpert.com/discussion/comment/81945639#Comment_81945639

It’s very kind of you to take the time to reply. Thank you.

To be fair, I won’t ask any follow up questions but I appreciate how much time you’ve probably saved me from embarking on a quest which was never going to have the desired outcome!!

ACG

https://forums.moneysavingexpert.com/discussion/comment/81945698#Comment_81945698

Dont worry, I am only messing.

Happy to help. Thats what I am on here for.

I say this every so often, but when I was starting out as a broker, I used to come on here and research peoples questions for experience. It helped me no end. Its nice to be able to give back a little.

thingswerentthisbadinmyday

https://forums.moneysavingexpert.com/discussion/comment/81945801#Comment_81945801

Thanks.

We’re trying to find the best way of financing a small home extension. We are in the fortunate position of having several options in terms of how to raise the cash.

With our fixed rate due to expire in the Autumn 2027, I had this wonderful idea of applying for a variable rate (or tracker) Offset and running it alongside the Fixed rate until then and when the fixed expires, combining both onto Offset.

Sadly, though, my existing Building Society doesn’t allow a combination of Fixed and Offsets on the same residential property, at the same time. And to break our (1.45%??) Fixed rate early, borders on bonkers!

In the big scheme of things, this isn’t a major issue. There are more important things to worry about.

I just wanted to have a look round and make sure I wasn’t missing anything obvious.

Thanks again.

silvercar

Extra lending with your existing lender could work out cheaper. If you take the extra on the SVR, you could overpay as and when you want without penalty.

thingswerentthisbadinmyday

https://forums.moneysavingexpert.com/discussion/comment/81947114#Comment_81947114

Thanks for the suggestion.

I have looked into this already. SVR gives the flexibility I’m really looking for, so that I could then tie the 2 mortgages together in Autumn 27. But it’s the 6.5% rate which puts me off a bit. But what price flexibility?!

Oddly enough, in my case, a personal loan could (and does) work out cheaper - especially as I could make overpayments/repay early without penalty.

We’re not overlooking the fact in all this that we’re in the very fortunate position of being able to afford to have the work carried out.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81947147#Comment_81947147

May be worth looking at zero interest credit card loans.

thingswerentthisbadinmyday

https://forums.moneysavingexpert.com/discussion/comment/81947152#Comment_81947152

Thanks again.

We’re both thinking very much along the same lines. I’ve checked out my credit card(s) and what they’re offering; also new cards.

I need to be a but careful, though, because although I have next to no borrowing on cards, I need to be aware of the affects on credit score of taking on new cards.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81947307#Comment_81947307

The score is a fairy number that only you see. Lenders look at the contents of your file and any internal records they may have.

I'd think twice about loading up on CC debt if you're planning to move or you think there might be another life change (divorce, job loss...) on the horizon, but that's a general point.