Stick with current mortgage or switch to offset?

Cazzdevil

I currently have a mortgage with Abbey so I'm able to make overpayments on it without being penalised (I'll not be making overpayments of more than they'll allow me anyway).

Now my boyfriend and I want to start making some inroads to paying it off a bit early so my question is, do we stick with Abbey or switch to offset?

I can see the benefits of offset; it's up to you how much you put in or take out but you need the discipline to be able to do it. The benefit of sticking with Abbey is that once the money is in and paid off we can't get it back out, so since we're not particularly disciplined it may prove easier for us.

I'm just interested to hear what people's ideas are, from what I gather the mortgage deal I have with Abbey (just their standard variable) is pretty good.

Thanks in advance.

belfastgirl23

I think you've put your finger on it when you say you aren't disciplined enough for offset it's a wise person who knows themselves well enough to know what's best for them. From my POV I'd be worried about two things with offset. One would be that I would do exactly what you say. The other is that I would get so tight I'd be afraid to buy a newspaper. I think knowing me I'd swing from one to the other Personally I think the way I have it now suits my way of life better and it's just about getting the best interest rate and making the highest overpayments possible.

Good luck with your kitchen BTW, great idea.

Cazzdevil

Thanks, the discipline thing is a bit of an issue with me, but if the deal worked out much better with an offset then I'd have to learn to be strict.

We're not looking to make any major overpayments until next year but I wanted to get the foundations of it set this year.

Capricorn_One

Also, it can depend on what your savings to mortgage ratio is like.
I managed to find a fee-free remortgage, offset tracker and am happy as the rates should hopefully come down a bit.
As you probably know, by offsetting you're effectively overpaying as more of your monthly payment is capital.

Ed.