You are here: Home - Remortgage -

Case study – Offset

0
Written by:
17/01/2017
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)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Get your head around mortgage fees

The mortgage fees associated with taking out and paying off a mortgage have tripled in the...
Get your head around mortgage fees

New buy-to-let mortgages launch in limited offer

The buy-to-let arm of Nationwide Building Society, The Mortgage Works, will tomorrow launc...
New buy-to-let mortgages launch in limited offer

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...
Guide to borrowing past retirement age

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators

Save money now!

See how much you could potentially save by remortgaging to a different product

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
Read previous post:
2235501-housepercent
Yorkshire Building Society launches 1.54% discounted rate

First-time buyers are being given a boost onto the housing ladder, with a new market-leading rate from Yorkshire Building Society....

Close