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Fixed rate offset mortgages

Hello

We're looking at moving up market and will need to take out a mortgage for around 10 years. Being rather prudent types, we would probably be looking to retain about 30-50k in savings whilst taking out an interest only mortgage for around 120k - which we could pay off using anticipated windfalls or pension funds.

My question. Is it possible to get a fixed rate interest only mortgage which can be offset against savings accounts and if so which BS's would you recommend?

Also, what are the downsides to Offset Mortgages. For example, are the rates generally much higher and what about redemption costs?

Many thanks for any comments.

Thanks Des

Reply to
Des
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No. I would recommend an offset tracker. It is more transparent, you don't need to keep remortgaging.

The rates are higher and it makes most sense if you make overpayments (or have offset savings). If you only plan to make the minimum payments and are stretching yourself, you will lose out. E.g. if you only paid your interest every month and had no offset savings. By nature they don't have redepemption penalties, except the admin fee when you close the account (or when it expires). You should also check other mortgage deals which might not be labelled offset/flexible but are flexible enough to allow overpayments.

No problem. There is no charge, but if it all goes pear-shaped for you the best compensation I can offer is a full and complete refund...

Reply to
whitely525

Which is much more than you would get from the paid professionals!

Thanks again Des

Reply to
Des

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