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mortgage confused, help please? Off-Set?
snowb
Posts: 10 Forumite
Hi All
Can someone please help me to figure out what the best move for my mortgage / savings is? Am so confused??
My current situation is as follows:
--> Savings: £25,000 In Savings account with 5.75% interest.
--> Mortgage fixed rate is up and need to move to new mortgage to get a good deal. Current mortgage is £181,000
It looks like the best mortgage for me at a fixed rate is with first direct and they have given me two options for what to go for. however this is an offset morgage which, although I know what it is, have no idea if it is a good or a bad thing? and should I move my savings from the above account????
I was thinking of doing the following:
Taking out a mortgage of £171,000 for 25years, so using £10K of my saving to pay some of the mortgage capital.
This will leave £15K in my savings account.
The First direct mortgages are outlined below, with their 'rules' so I dont know the best thing to do and whether to move my savings / not?
Mortgage Rules:
- Off-set mortgage
- Need to open a frist direct first account.
- Can have separate savings accounts but they are linked for interest calculation as overall balance decreases the amount of interest paid.
- Closure before 2years = £149
5.25% for 2 years.
- No arrangement Fee
- Booking fee = £99
- Valuation Fee = £270
- Can overpay at any time and amount of interest is immediately recalcualted.
4.75% for 2 years.
- Arrangement Fee = £999
- Booking fee = £499
- Valuation Fee = £270
- Can overpay at any time and amount of interest is immediately recalcualted.
Saving account options:
Saving Accounts:
ACCOUNT ONE:
12 month fixed at 8%
Interest calculated daily and paid yearly.
Cannot make any withdrawl during the year or will only get 3.5% interest.
ACCOUNT TWO:
5% monthly interest, variable and calculated daily.
Can make withdrawls.
ACCOUNT THREE:
5.25% monthly interest, variable and calculated daily.
No interest is paid on any month where you make a withdrawl.
ACCOUNT FOUR:
3.75% monthly interest, variable and calculated daily for between 5K and 49K
Can someone please help me to figure out what the best move for my mortgage / savings is? Am so confused??
My current situation is as follows:
--> Savings: £25,000 In Savings account with 5.75% interest.
--> Mortgage fixed rate is up and need to move to new mortgage to get a good deal. Current mortgage is £181,000
It looks like the best mortgage for me at a fixed rate is with first direct and they have given me two options for what to go for. however this is an offset morgage which, although I know what it is, have no idea if it is a good or a bad thing? and should I move my savings from the above account????
I was thinking of doing the following:
Taking out a mortgage of £171,000 for 25years, so using £10K of my saving to pay some of the mortgage capital.
This will leave £15K in my savings account.
The First direct mortgages are outlined below, with their 'rules' so I dont know the best thing to do and whether to move my savings / not?
Mortgage Rules:
- Off-set mortgage
- Need to open a frist direct first account.
- Can have separate savings accounts but they are linked for interest calculation as overall balance decreases the amount of interest paid.
- Closure before 2years = £149
5.25% for 2 years.
- No arrangement Fee
- Booking fee = £99
- Valuation Fee = £270
- Can overpay at any time and amount of interest is immediately recalcualted.
4.75% for 2 years.
- Arrangement Fee = £999
- Booking fee = £499
- Valuation Fee = £270
- Can overpay at any time and amount of interest is immediately recalcualted.
Saving account options:
Saving Accounts:
ACCOUNT ONE:
12 month fixed at 8%
Interest calculated daily and paid yearly.
Cannot make any withdrawl during the year or will only get 3.5% interest.
ACCOUNT TWO:
5% monthly interest, variable and calculated daily.
Can make withdrawls.
ACCOUNT THREE:
5.25% monthly interest, variable and calculated daily.
No interest is paid on any month where you make a withdrawl.
ACCOUNT FOUR:
3.75% monthly interest, variable and calculated daily for between 5K and 49K
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