You are here: Home - Remortgage -

Case study: Offset

0
Written by:
17/10/2012
John and Elizabeth Hickey, both 40, live in South East London.
Case study: Offset

 

 

They took out an offset mortgage with First Direct when they moved house in 2011.

“We have banked with First Direct for years and had savings accounts and ISAs with them,” explains John.

“But we calculated that it made much more sense to cash in our ISAs and offset the whole lot against our mortgage debt. Obviously ISAs are appealing as they are tax-free – but then, as all of our savings are now tied up in our mortgage, the whole lot is tax-free. And we can access what were our savings whenever we want if necessary.”

Elizabeth adds: “The interest rate charged on the offset mortgage is a fair bit lower than we were previously paying on a fixed rate, but we decided to maintain our monthly repayments at the same level, so we are overpaying a fair amount. If we can keep it up then we should pay off our mortgage years early, and save many thousands of pounds, which is fantastic.”

There are 0 Comment(s)

Is your mortgage fully protected with critical illness?

For a free quote or to speak with an insurance expert call 0800 1218744

Your Mortgage Guides

Guide to Help to Buy

Download our free, handy guide to Help to Buy, produced in association with Aldermore Mortgages.

Read More >

Speak to an adviser

Could you benefit from impartial, free advice?
  • UK passes rental freedom day http://t.co/xfP8dUXDdz
  • Are you ever ‘too old’ for buy-to-let?
  • Estate agents say GE will hit property market
  • @Your_Mortgage It is a Shame that we are not in the East anglia area or we could of done lots of business with Ipswich Building Society
Close