Offset Mortgages - worth it or not?

[lukemg]

Got an offset tracker (base +.7) mortgage, works fine for me. Could probably do a bit better changing every 2 years or so but as a contractor and paperworkphobe I don't need the hassle. Very easy to borrow extra cash also, you just write a cheque.
Of course - they only work if you generally have a decent balance and some discipline ! Mate got one with g/f when they moved in together, her policy was to try and max out the available lending, they have switched to a normal one now.

[THEPUMA]

Plus most mortgages allow you to repay up to 10% pa without charge (and you can effectively get it back by reducing your payments), so unless you are going to offset more than this, you are probably paying a premium for a facility you don't need.

However, you may be able to offset your company funds against your mortgage if you structure it correctly, which can be very efficient.

[MarillionFan]

Yes they're very good if you have cash.

Basically, if you have 25% or more in cash. Eg you have a £200k mortgage and £50k in cash, plus this will increase, then yes you're quids in.

If you have a £200k mortgage and £10k in the bank and you don't tend to have a high cash flow, then fix your mortgage as the discounts the lenders apply will make you better off and stick the £10k in a high interest account.

I worked this all out with a spreadsheet sometime ago.

[Fishface]

Anybody got one?

a good experience? or a bad one?