Offset mortgages

Brendan Burgess

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Are there still only two mortgage providers providing offset mortgages?

First Active is a tracker which is 1.15% above the ECB rate - so this makes it too expensive. Has anyone managed to get a lower margin from First Active?

[broken link removed] isn't even a tracker, so the current rate of 1.1% is not only too high, but it could rise more than the ECB rate.

Is there any other option for a borrower who has cash balances from time to time? For example, can they pay lump sums off their mortgage and then borrow them back with little or no paperwork?

Brendan
 
If you have a present and future advances mortgage lodging to and topping up is straightforward.
 
Stifster said:
If you have a present and future advances mortgage
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What's that? Are you sure that this is not just a tracker/variable rate mortgage on which you can make accelerated lump sum or regular capital repayments/overpayments - but then the money is locked in and cannot (easily) be accessed?
 
IIB offer redraw on over payments as standard, all you do is request your funds back....
 
In the meantime are they actually offset against capital? So the IIB mortgage is an offset/current account mortgage in effect?
 
Another option is that NIB are offering a savings account at the moment that has the same interest rate as their LTV mortgage (assuming an LTV <50%). So any excess money can be put into the savings account and will balance out the mortgage interest on that amount. If you decide, you can then transfer the money against the mortgage.

This isn't exactly an answer to your question, but I thought I'd suggest it.

I came across it as I have gone to NIB for a top-up on my LTV (<50%) mortgage and this was suggested as the easiest way to hold the extra until I need it, as opposed to staged drawdown during the renovations.
 

Is the the same rate after DIRT, or gross before DIRT? E.G. are you losing 20% on it?
 
And owner occupier mortgage interest relief should reduce the effective rate charged on the mortgage so you need to factor this in when comparing the two.
 
ClubMan said:
What's that? Are you sure that this is not just a tracker/variable rate mortgage on which you can make accelerated lump sum or regular capital repayments/overpayments - but then the money is locked in and cannot (easily) be accessed?
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No, the actual mortgage can be registered for the initial advance meaning that any top-ups also have to be registered or for present and future advances meaning that any tops-ups are deemed to be secured and can be done faster.

To be honest though I don't know why they are registered as one or the other, it might be that you have to ask the lender and incldue it in the conditions.

(Classic helpful and useless post)
 
Stifster said:
No, the actual mortgage can be registered for the initial advance meaning that any top-ups also have to be registered or for present and future advances meaning that any tops-ups are deemed to be secured and can be done faster.
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Sorry - I can't really understand this at all...
 
On say a Land registry title i have seen mortgages registered for fixed amounts. E.G. AIB €100,000 Where that is the case you have to register as a charge any additional amounts released by the Bank with the property as security = additional costs and time

I have also seen mortgages registered "to AIB for €100,000 present and future advances" which means that there is no need to register any future advances made on the mortgage (they are covered by the original charge) = less costs and time on topping up.

I'm potentially talking through my *rse and it may not really be what the OP is asking but there you go!
 
Another variation of what you are saying is an 'all sums due' mortgage. Most banks I think use this, means they can do top ups to mortgage without going through solicitor again, however there is usually an upper limit to the top up. You will not negotiate a better rate on the FA offset mtg, it is a one rate product and is sold on the basis of the savings made on interest if you offset enough against it. Works well for some but not for everyone.
 
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