Offset Mortgages

[Lewis]

First Direct Offset Mortgages - Agreed. There great.
I've paid mine off (well almost) in double quick time since moving to an offset with First Direct. I find that it's a bigger incentive to get the amount down when I have control over the amount that I can pay into the mortgage account. Certainly the way to go for contractors.

And if you happen to phone on your birthday they say "Before we continue may I just wish you a very happy birthday"

[minstrel]

offsets still have rates that are at least .35/.4% higher

I've just booked a 2 year fixed offset with First Direct for 5.49%. I couldn't find any deals better than that - offset or otherwise...

You can also book FD remortgages up to 6 months in advance which is handy if you think rates are going to rise.

[Lewis]

I've just booked a 2 year fixed offset with First Direct for 5.49%. I couldn't find any deals better than that - offset or otherwise...

You can also book FD remortgages up to 6 months in advance which is handy if you think rates are going to rise.

You're lucky the rate rose to 5.99% a few days ago.

[rawly]

You're lucky the rate rose to 5.99% a few days ago.

...and then to 6.15% They must be reading this Forum.

[kali]

I've just booked a 2 year fixed offset with First Direct for 5.49%. I couldn't find any deals better than that - offset or otherwise...

You can also book FD remortgages up to 6 months in advance which is handy if you think rates are going to rise.

Did you go direct or through a broker?

As a contractor (assuming you are ) what did they require as proof of earnings - last year's accounts or a current contract?

[Lewis]

Did you go direct or through a broker?

As a contractor (assuming you are ) what did they require as proof of earnings - last year's accounts or a current contract?

You can only go direct. They are contractor friendly. Copy of current contract should be fine. Call them to discuss they are very helpful.

[al_cam]

Had an offset mortgage for 5 years now.
With the large overpayments I can make every time I pay a dividend, I will pay it off in less than 2 years time, a full 10 years less than the original 25 year term.
The mortgage free goal being within touching distance is a great motivator to offset more.

As others have said - no need to change mortgage once a fixed rate has finished, no need to chase around finding the best investment and if I ever need to buy anything big, no problem - there is a huge reserve there which unlike most of the best investments, is not tied in.
I can also see online how much I owe and get a statement every 6 months showing how much interest I have saved through offsetting - always puts a smile on my face.

Only thing I wish I had done was got one of those current account mortgages so that every penny I had in the bank was offset rather than that which I transferred to the mortgage account

Al.

[minstrel]

You're lucky the rate rose to 5.99% a few days ago.

I know - I booked it last week. Phoned them up to double check I'd got it in time. Thankfully I did

[minstrel]

Did you go direct or through a broker?

As a contractor (assuming you are ) what did they require as proof of earnings - last year's accounts or a current contract?

They haven't asked for anything yet. Advisor on the phone said previous accounts would be fine. I also bank with FD and have business accounts with HSBC which might help.

Interestingly, the underwriter asked for my HSBC business account details before agreeing in principle, so it looks like FD mortgage people have access to HSBC accounts (or maybe it's just a single central HSBC underwriting department).

[NickNick]

FD Offset

Just out of interest for any of you, I've just got my confirmation of an offset mortgage through FD. That was 8 months from filling in the application form to getting approval. Wonderful service that. ;o)