Offset Mortgage

R

RobAMerc

Registered User
Messages
79
Hi,

I have noticed the headline figure of 3.3% for the First Active offset mortgage.
I realise this is a pie in the sky figure with the base figure being probably higher than a tracker at the mo.

My question is - would I be better of going with this figure and poping the 500pm I think I can spare into the current account as they suggest
or
stick with my normal tracker and put the 500pm in a high interest regular saver account ?

Or can someone point out how I can do the calcs
thanks
rob
 
I'm not hugely familiar with this product but in the TV ad it says to end up with what is effectively a rate of 3.3% you have to save €200 per month against an average mortgage. So it's just a matter of doing the maths on it to work out whether this is a good deal or not. Seems like quite a bit to do to achieve that rate so I'd question them being allowed feature the "3.3%" so prominently.
 
I think the ads state 3.8% - not 3.3% The base rate is 5.3 .
They base the figures on a 30 yr 220000 mortgage and a 200 per month deposit on top of your regular repayments
The savings and rates they quote are based on the assumption that when your savings total reach the mortgage balance (in about 22 years) - you pay it off (about 8 years earlier on a 30 yr mortgage).
 
Their website says "get your mortgage rate down to 3.8% APR or less".

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Couldn't any bank advertise in this manner? As in "Get your rate down to 2.9%" All you've got to do is save a certain amount per month/overpay by that amount. It's a little bit close to bone credibility wise. Just my view
 
You don't deposit the extra funds into your mortgage, you deposit it into a current account. The funds in the current account are 'offset' against the mortgage and therefore reduces your repayment.

The more money in your current account, the more your mortgage is reduced.

All banks cannot advertise in that manner because no other bank offers that product.

Only IIB offer something similar where you can deposit money into your mortgage and withdraw it at anytime without penalty, but it is not a current account.
 
I have 250e savings going into First Acitive Facility Account each month ....suppose I should be putting this in their current account (have to open one first) to get the best deal?
 
Mamto2 - have you got an offset mortgage with them? If not - then I'm not sure what you mean ?
 
Facility/current account - same thing. Once the account is linked to the mortgage it doesnt matter what they call it.
 
Irishlinks,
Yeah I have an offset mortgage with First Acitve but dont think the statements Ive been receiving reflects this saving. Thanks for the reply
 
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