Hi MSE
Trying to work out if we should go for an offset mortgage.
[It doesn't help that the MSE Ultimate Mortgage Calculator seems to be broken - see my post here - forums.moneysavingexpert.com/showpost.php?p=58514521&postcount=70 (Sorry - am newbie so forum won't let me post active links) ]
We are currently with Santander (!) coming to the end of a 3 year fix on 4.49%, with £130k outstanding (on a 330k property).
Our independent? advisor wants us to stay with Santander & go for a 5 year fix on 3.49% with £125 payment. (£713/month payment.)
After a couple of hours research I found the Co-op offers a 5 year fix at 2.79% with £1000 fee, which works out £570 cheaper per year over the 5 years (inc the fee)! (£665/month payment - hello independent advisor!?)
However, my partner and I have quite high cash savings - about £9k in individual + joint accounts, 11k in savings accounts, plus I might be able to source another 10k from my underperforming shares. We're busy with jobs & 2 kids so not a lot of time to look after our cash so it's in rubbishy accounts.
(We're good at saving - no car, few holidays etc but not very good at actually making the saved money work).
Am looking very hard at First Direct's offset mortgage - seems highly recommended here, and good to have all our cash in one place and working hard.
FD current offset offers:
2yr fixed fee free, 3.49% then svr 3.69%
2yr discount tracker, fee free, currently 3.39%
3yr fixed, fee free, 3.79%
3yr fixed, £500 fee, 3.49
All quite similar monthly payments, around £530-560 per month which is very affordable, & will let us pump even more cash into the offsetting savings account.
What do you think?
- Co-op 2.79%+lump-overpayment+ISAs(low performing at moment)
OR
- 100% First Direct offset? (which deal?)
(PS I am aware of FD's 8% account, but that is balanced by Santander's 3% account, but as I said we don't have much time to actively manage our money, so FD's stick-it-in-the-savings-offset-account-and-forget-it is appealing)
Cheers RedMonty
Trying to work out if we should go for an offset mortgage.
[It doesn't help that the MSE Ultimate Mortgage Calculator seems to be broken - see my post here - forums.moneysavingexpert.com/showpost.php?p=58514521&postcount=70 (Sorry - am newbie so forum won't let me post active links) ]
We are currently with Santander (!) coming to the end of a 3 year fix on 4.49%, with £130k outstanding (on a 330k property).
Our independent? advisor wants us to stay with Santander & go for a 5 year fix on 3.49% with £125 payment. (£713/month payment.)
After a couple of hours research I found the Co-op offers a 5 year fix at 2.79% with £1000 fee, which works out £570 cheaper per year over the 5 years (inc the fee)! (£665/month payment - hello independent advisor!?)
However, my partner and I have quite high cash savings - about £9k in individual + joint accounts, 11k in savings accounts, plus I might be able to source another 10k from my underperforming shares. We're busy with jobs & 2 kids so not a lot of time to look after our cash so it's in rubbishy accounts.
(We're good at saving - no car, few holidays etc but not very good at actually making the saved money work).
Am looking very hard at First Direct's offset mortgage - seems highly recommended here, and good to have all our cash in one place and working hard.
FD current offset offers:
2yr fixed fee free, 3.49% then svr 3.69%
2yr discount tracker, fee free, currently 3.39%
3yr fixed, fee free, 3.79%
3yr fixed, £500 fee, 3.49
All quite similar monthly payments, around £530-560 per month which is very affordable, & will let us pump even more cash into the offsetting savings account.
What do you think?
- Co-op 2.79%+lump-overpayment+ISAs(low performing at moment)
OR
- 100% First Direct offset? (which deal?)
(PS I am aware of FD's 8% account, but that is balanced by Santander's 3% account, but as I said we don't have much time to actively manage our money, so FD's stick-it-in-the-savings-offset-account-and-forget-it is appealing)
Cheers RedMonty