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Offsetting Mortgage Recommendations

We have an Intelligent Finance mortgage, with savings and current account being offset against the mortgage.

With rates going up, and IF seeming really keen to follow those rises almost immediately, I feel it could be worth a look around. The offsetting thing has worked really well for us so far, the admin platform with IF is great, the way IF dealt with our change of bank account from Lloyds TSB was fantastic, and quick, but should I be happy with my current standard variable rate? With no redemption penalties, I may be missing a better deal?

Thanks in advance for your guidance.

Chris

Reply to
Evil Uncle Chris
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Are people meant to guess what your rate is?

Reply to
Tumbleweed

Good point.

I made an assumption that everyone would know the rate for a standard IF mortgage. It's 5.45%, by the way.

regards

Chris

Reply to
Evil Uncle Chris

I'm with Barclays / Woolwich Offset which IIRC was very similar to IF when I compared them. Rate is 5%. (4.25% + .75%). At the time I took it out there was a clause that it would remain at or below (ie at) 0.75% above Base. Not sure what it is now if you took one out, I believe they dont have that guarantee any more. On their website it says (for an example calculation); "The mortgage interest rate used is 4.85%, which is the rate currently available to all customers wishing to take out an Offset Tracker Mortgage from the Woolwich to be incorporated within an Openplan Offset arrangement"

Others have pointed out here you can also look at mortgages that have a lot of flexibility about over and underpayments and get the same effect.

BTW, if you go for this, take it out through Barclays not Woolwich.

Reply to
Tumbleweed

We have had a One Account (used to be Virgin One) for five years now, and it has been fabulous. The interest rate is slightly higher than some short term fixed rate deals (currently 5.45%) but the sheer flexibility of being able to keep all our cash in there as long as possible (it's a very good idea to use a 0% interest rate credit card and keep the cash in your One Account for example) has made enormous savings on our interest payemnts, and we are now on target to pay our mortgage off about 8 years earlier than we thought when we first moved to them.

They are very efficient and the interest rate moves within 24 hours of the BOE announcement and that is the same if interest rates fall as well as rise, so that you benefit immediately.

I love being in total control of my finances and it works brilliantly for us, but you do have to be discplined to get the best from this type of account.

Good luckj! L

Reply to
Butterfly

I've got a One account and since starting it 1999 it acted like a tracker - all base rate changes reflected in full with 24 hours.

I like it but I'm unsure how the interest rates compare (rates are tiered to LTV as well) -

"As at 07.05.04 our interest rates are :

Your facility in relation to the value of your home Your One account interest rate

Up to 50% 5.35%

50.01% - 75% 5.45% 75.01% - 80% 5.55% 80.01% - 85% 5.65% 85.01% - 90% 5.80% 90.01% - 95% 5.95% 95.01% - 99% 6.20%"

Search the uk.finance archive as they're discussed regularly also Which? magazine (at the local library & ) review them from time to time.

Daytona

Reply to
Daytona

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