Hi guys
Trying to decide between an offset and a fixed rate+savings and have used the calculator, but not sure it's giving me the full picture.
I've plugged in my numbers
104k owed over 25 yrs
3.29% 4 yr fix with £99 fee with nationwide
3.69% offset with £500 fee with first direct
Savings of 15k at 2% at basic rate tax
Overpayment/monthly saving of £500
Calculator comes out with the offset ahead by £850 over the 4 years of the fix deal, but i think this assumes my £500 a month would be put into the 2% savings, whereas what i would intend to do is put this into the nationwide mortgage as an overpayment. I assume this would put the fix way ahead of the offset but am unsure. Any ideas on the numbers?
Cheers
Brighty
Trying to decide between an offset and a fixed rate+savings and have used the calculator, but not sure it's giving me the full picture.
I've plugged in my numbers
104k owed over 25 yrs
3.29% 4 yr fix with £99 fee with nationwide
3.69% offset with £500 fee with first direct
Savings of 15k at 2% at basic rate tax
Overpayment/monthly saving of £500
Calculator comes out with the offset ahead by £850 over the 4 years of the fix deal, but i think this assumes my £500 a month would be put into the 2% savings, whereas what i would intend to do is put this into the nationwide mortgage as an overpayment. I assume this would put the fix way ahead of the offset but am unsure. Any ideas on the numbers?
Cheers
Brighty