Offset / CAM or Fixed

Alloydy_2

I am currently coming to the end of a 2 year fixed deal with Portman BS (now Nationwide. This is a repayment mortgage.

My mortgage will be approx £102,000 and will have 21 years left to run.

I am torn between using my £8,000 savings and taking on another fixed rate at £94,000 and also reducing my term by about 4 or 5 years ( I can afford the extra monthly costs), or whether to go for an offset mortgage, using the same savings.

I am really tempted by the offset, as I regularly earn quite a decent monthly bonus, which would in turn reduce the loan, however I am really unsure about having "all my eggs in one basket". Also, I regularly read of people who have regretted going for an offset.

I am not at all financially minded, and have relied on basic calculators from various mortgage sites, however cannot really work out which one is going to leave me in the best position - both in terms of financial savings and reducing term.

Any help would be greatly appreciated - as always I have left things until the last minute, so really need to get a move on.

Thanks in advance. A Lloydy

silvercar

Personally I would chose the offset if you can get a decent interest rate.

Your "eggs in one basket" doesn't really apply because with that level of savings I presume you would otherwise put the savings in a deposit account rather than an investment vehicle so they are still in the "cash" basket.

As for the safety of your money. If you had a current account mortgage, your money is protected as your balance is negative. If you had a savings with linked offset the savings amount is protected upto £35k per person.

dpesky

hi andy, let the experts do the hard work for you. Let a broker do the hard work for you.............

Owner of a Nationwide Mortgage Brokerage and features writer for UK mortgage magazines

This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

_Andy_

dpesky wrote: »

hi andy, let the experts do the hard work for you. my advice is to check the offsetmortgagecentre website out. They dont charge fees and will have all the answers to your questions.

Owner of a Nationwide Mortgage Brokerage and features writer for UK mortgage magazines

This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

Spamming your website again?

reported (for what it's worth)

payless

his signature was changed to a more "standard" format last week .. ( wonder if MODs did it) but now gone back again

maybe as the firms keep being posted they should look at filtering