best value switching mortgage

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paperclip

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just had a look in financial best buys, and couldn't see any for mortgages.

anyone know the best value switching mortgage?
 
  • Is the property your home or an investment?
  • Value of property?
  • Mortgage amount outstanding?
  • Are you looking for tracker or fixed rates?
 
thinking of changing too. I own 152k with value of apartment E280K with 30 year left to pay. I heard a little about current account mortgage is it a good idea?
 
gar32 said:
thinking of changing too. I own 152k with value of apartment E280K with 30 year left to pay. I heard a little about current account mortgage is it a good idea?
Click to expand...

Yes, but only if you use the benefits. In short an Offset Mortgage as they're now known offsets any balance you have in the current account(s) against your mortgage balance and only charges you interest on the reduced sum. This calculation is done on a daily basis, so even if you get your salary paid into the offset account and spend most of it over the course of a month, you're still benefiting to some degree because there's the full amount of salary in the acount at the start of the month and every day until you've spent it.

It's also a good place to keep savings that you would otherwise hold in cash and/or want ready access to.

But seeing as you can get lower rates of interest elsewhere on a tracker mortgage with no offsetting features, an offset mortgage is only a good idea if you're going to use the offset accounts to the full.

Some calculators and information available [broken link removed].
 
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Sorry link not working could you help. Many thanks for advice. I normal have money in current account as a buffer.
 
Can someone provide an example of what would be a good reason to go for an offset mortgage? ie Borrow X, monthly salary Y, monthly expenses Z, lump sum deposit savings etc.
 
To reduce the overall interest cost of the mortgage while keeping the money used to do this available as opposed to locking it into accelerated capital repayments on a regular variable/tracker mortgage. On the other hand to get the initial offset mortgage rate down to what the cheapest regular variable/tracker mortgage charges probable requires you to lodge money to the offset account in the first place.
 
Sounds like one may be better with a high rate savings a/c and best LTV tracker mortgage with one lodging lumps sums every year to reduce term of mortgage.
 
LDFerguson said:
  • Is the property your home or an investment?
Value of property?
Who can tell me the value of my property???

Bank has asked what the value is to see if we quality for better LTV rate. How do I go about getting it valued?
  • Mortgage amount outstanding?
  • Are you looking for tracker or fixed rates?
Click to expand...
 
Ask the lender what sort of valuation they are expecting - e.g. valuations from one or more estate agents perhaps?
 
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