Offset,flexiable or normal?

crockpot

Hi

I have an Offset mortgage with Yorkshire BS and am on a deal of BOE base rate plus 0.75% so 5.75% but this deal will end in a few months.Not sure what the apr is on this.

Looked on their website and their cheapest offsett for mortgage transefers is 7.2% apr and cheapest normal mortgage 6.9% apr.

Done a few searches and found an offset at 6.2% apr which is a base rate tracker, and a normal repayment at 6.1% apr which is also a tracker.

I will need a £17000 mortgage over 8 years, which I would like to repay early if possible, any ideas?

Might not have much spare money tp throw at it as might be down to 1 income soon.

Thanks

Just seen a lifetime tracker with the woolwich which is 5.9% apr, but you have to take out a min loan of £50k,it allows repayments, so moght it be worth looking at? borrow £50K then repay to leave £17,000?

Little_Mama

Hi Crockpot,

Sorry, I've not got an answer for you but I'm sure someone more knowledgeable will be along soon. You could also try popping this on the Mortgage board as there are several mortgage advisors who may be able to help.

Best wishes
LM

shaymenRup

I started offsetting recently with First Direct, although i know they stopped new business for a short time.

To be quite honest though with the amount you owe, small variations in the interest rate will hardly register. It may be cheaper to remain with your existing lender and save having to pay an exhorbitant product fee/ admin fee with another bank.

Jonbvn

Hi,

Given that you only owe £17k, I think most lenders will not be willing to consider an offset mortgage for you. In fact most mortgages are usually set at a minimum amount of £25k. This means that remortgaging will be difficult whatever.

Whatever you decide, BEWARE OF HIGH FEES!

Sorry to be the bearer of bad news....

getmore4less

Jonbvn wrote: »

Hi,

Given that you only owe £17k, I think most lenders will not be willing to consider an offset mortgage for you. In fact most mortgages are usually set at a minimum amount of £25k. This means that remortgaging will be difficult whatever.

Whatever you decide, BEWARE OF HIGH FEES!

Sorry to be the bearer of bad news....

Should be no problem remortgaging to £25k and then paying off a chunk,

agree about fees these will make the equivilant rate a lot higher, olan for any change to be the last one.

If the woolwich will let you do a "switch&save" they have some no fee offers on trackers with no penalties for overpayments.

Capricorn_One

Hi. Have you looked at the Barclays/Woolwich offset tracker? That's the best offset around that I know about at the moment. 0.74% + Barclays Base Rate (apparently the same as BOE base but adjusted at the end of the month, I read in this forum).

You can offset any ISAs against it, too. As long as you transfer them to Barclays.

http://www.woolwich.co.uk/mortgages/offset-mortgages.html

Regards, Ed.