Offsetting

MBADaruma

hi There,

I have a FD mortgage fixed for 2 years. I am wanting to form a large stoozing pot but would like to know with all the high BT fees, 2-3%, what benefits is my stooze pot going to have on my offset mortgage?

Is there an offset mortgage calculator that can do the sums for me? At what point does the benefits of offsetting outweigh the costs of obtaining credit?

Thanks in advance.

J

YorkshireBoy

MBADaruma wrote: »

...what benefits is my stooze pot going to have on my offset mortgage?

So long as the borrowing costs, ie BT fees, are reasonable (3% per year, ie stick to 12-15 month deals if they have uncapped fees) It'll save you money (in that you won't pay as much interest). There may be some disadvantages...for example, you may need to clear some stoozing debt down before re-mortgaging again (if you change provider).

Is there an offset mortgage calculator that can do the sums for me?

www.stoozing.com/calc.htm

At what point does the benefits of offsetting outweigh the costs of obtaining credit?

The whole point of stoozing is to borrow cheaply, and invest to either make money (savings accounts) or save money (offset mortgages). There are tax advantages for most people with choosing the latter.

sdooley

just don't be tempted to spend any of the stoozing money - it's not yours!