Offset Mortgages

[Modeligo]

Hi,
Does anyone think these type mortgages as offered by First Active and National Irish are a good idea? they seem to be in theory so when you juggle the numbers-are they still?
Thanks.

 

[KalEl]

Hi,
Does anyone think these type mortgages as offered by First Active and National Irish are a good idea? they seem to be in theory so when you juggle the numbers-are they still?
Thanks.

Generally they work out more expensive than tracker mortgages unless you have substantial amounts of cash lying in your current account. For the average mortgage an amount around €38,000 would be required. (This figure is based on my own example)
They seem to be most suitable for the self employed who have large amounts of money lying around to settle tax bills.

 

[RMCF]

Generally they work out more expensive than tracker mortgages unless you have substantial amounts of cash lying in your current account. For the average mortgage an amount around €38,000 would be required. (This figure is based on my own example)
They seem to be most suitable for the self employed who have large amounts of money lying around to settle tax bills.

Is this true as I am considering switching to an offset.

I currently owe €82k on my mortgage and have 16 years left.

If I switch to an offset and save an additional €400 per month into the new current account linked to it, the calculator says I would reduce my mortgage by 7yrs 9 months.

I like the sound of this, but is it true in reality? I appreciate that if you don't save €400 EVERY month or indeed start saving less or spending money you have in your current account the time off your mortgage will increase again (or decrease whatever way you look at it).