Another offset

ds1980

Just trying to work out if this is a good option for us? As i understand it i think offsetting is better for those with short termage left on their mortgage.

We have built up equity aand savings over the last few years and have finally decided to get out the rat race and buy somewhere for the long term. We are loking at different mortgage options but i like the offset principal but wanted to see if we should?!?

I know its down to preference but we'd like the flexibility of being able to use the savings jar if we needed a holiday or new dog!!!

We are looking at putting in £50k or so into a house. Should we do as little deposit as possible and keep the remainder in savings? Or should we put the whole lot in and then put some extra into savings?

I also like that you can usually overpay without penalty but its just tryign to do the sums. Does anyone want to do them for me?!!?

Any help would be great.

thanks,

dimbo61

there are lots of threads on here about the sums you need to make
offset mortgages work.
but as one of the best ( IE lowest rate mortgage products ) seems to be
first direct 2/3/5 year offsets I think offset is very good.
It is an easy way to save the six months emergency fund you should have
It helps save you interest because the more you save into the offset the less
interest you are paying and therefore the more capital you are clearing.
This also reduces the term of your mortgage .
This applies even if you have a 25/30 year mortgage.
You could keep your £50,000 and offset this against your offset mortgage
and still have this money for emergencies. Or get a better rate in ISA,s