| Offset mortgage - win-win [message #353614] |
So, 05 Februar 2006 21:18 |
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i recently started offset mortgage with 1st direct (only pay interest on the
difference between what you borrow and what you have saved)
+ they paid me £25 to open a current account with them - i opened 3 accounts
(£75)
+ they paid me another £25 to have our salary paid into them (+£50) and
organised the transfer of any d/debits, etc
+ get a text msg statment each week (we got one per year from Alliance)
+ their morgage rate is 5.5% compared to near 7% charged by Alliance (who
used to stitch me up)
+ they knocked 1% off mortgage rate for 1st 3 months
+ i can offset as many accounts as i like & so i shifted every single penny
of our savings into 1st direct and offset it
+ even an i.s.a. cant earn interest at the rate we are borrowing so i'm
gaining near 2% per annum there
+ not taxed on interest on savings (since they now dont earn interest at
all)
+ interest is calcualted daily so can even benefit from fluctuating salary
account
+ can pay back the mortgage however (solong as it's paid by the agreed term)
+ can borrow back any money i pay off the mortgage directly in an emergency
+ can have any additional loans [at] same rate as the mortgage
question: excluding special interest rates - how can any other type mortgage
still exist in this light ??????????????????
and no i dont work for 1st direct
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| Re: Offset mortgage - win-win [message #353616 ] |
So, 05 Februar 2006 21:35 |
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"JethroUK©" <reply [at] the.board> wrote in message
news:u4tFf.40139$0N1.39991 [at] newsfe5-win.ntli.net...
>i recently started offset mortgage with 1st direct (only pay interest on
>the
> difference between what you borrow and what you have saved)
> <snip>
Didnt you post all this a week ago?
--
Tumbleweed
email replies not necessary but to contact use;
tumbleweednews at hotmail dot com
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| Re: Offset mortgage - win-win [message #353617 ] |
So, 05 Februar 2006 21:45 |
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nope - haven't been posting here for a week
"Tumbleweed" <thisaccountneverread [at] yahoo.com> wrote in message
news:44n5q1F30dqsU1 [at] individual.net...
>
> "JethroUK©" <reply [at] the.board> wrote in message
> news:u4tFf.40139$0N1.39991 [at] newsfe5-win.ntli.net...
> >i recently started offset mortgage with 1st direct (only pay interest on
> >the
> > difference between what you borrow and what you have saved)
> > <snip>
>
> Didnt you post all this a week ago?
>
> --
> Tumbleweed
>
> email replies not necessary but to contact use;
> tumbleweednews at hotmail dot com
>
>
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| Re: Offset mortgage - win-win [message #353618 ] |
So, 05 Februar 2006 21:54 |
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"JethroUK©" <reply [at] the.board> wrote in message
news:u4tFf.40139$0N1.39991 [at] newsfe5-win.ntli.net...
> i recently started offset mortgage with 1st direct (only pay interest on the
> difference between what you borrow and what you have saved)
>
> + they paid me £25 to open a current account with them - i opened 3 accounts
> (£75)
>
> + they paid me another £25 to have our salary paid into them (+£50) and
> organised the transfer of any d/debits, etc
>
> + get a text msg statment each week (we got one per year from Alliance)
>
> + their morgage rate is 5.5% compared to near 7% charged by Alliance (who
> used to stitch me up)
>
> + they knocked 1% off mortgage rate for 1st 3 months
>
> + i can offset as many accounts as i like & so i shifted every single penny
> of our savings into 1st direct and offset it
>
> + even an i.s.a. cant earn interest at the rate we are borrowing so i'm
> gaining near 2% per annum there
>
> + not taxed on interest on savings (since they now dont earn interest at
> all)
>
> + interest is calcualted daily so can even benefit from fluctuating salary
> account
>
> + can pay back the mortgage however (solong as it's paid by the agreed term)
>
> + can borrow back any money i pay off the mortgage directly in an emergency
>
> + can have any additional loans [at] same rate as the mortgage
>
>
> question: excluding special interest rates - how can any other type mortgage
> still exist in this light ??????????????????
Because other mortgages have better rates?
Eg Nationwide are doing a lifetime fix at BOE base rate + 0.39% (4.89% currently).
It's flexible enough for most people to use as a saving account - you can make
overpayments (although limited to £500 per month in the first 5 years) and withdraw
them whenever you want.
You don't get to offset your current account, but the benefit in doing that is nearly
always trivial compared to the mortgage rate.
--
Andy
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| Re: Offset mortgage - win-win [message #353624 ] |
So, 05 Februar 2006 22:36 |
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JethroUK© wrote:
> i recently started offset mortgage with 1st direct (only pay interest on the
> difference between what you borrow and what you have saved)
>
<snip>
> + their morgage rate is 5.5% compared to near 7% charged by Alliance (who
> used to stitch me up)
>
<snip>
>
> + even an i.s.a. cant earn interest at the rate we are borrowing so i'm
> gaining near 2% per annum there
>
Yep, it's a shame that Alliance don't do an offset, 'cos then you could
move back and be gaining 3.5% per annum with them.
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| Re: Offset mortgage - win-win [message #353627 ] |
So, 05 Februar 2006 23:37 |
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JethroUK© wrote:
> question: excluding special interest rates - how can any other type
> mortgage still exist in this light ??????????????????
Question: Apart from that you die when you hit the bottom, is
there any disadvantage to jumping off a cliff?
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| Re: Offset mortgage - win-win [message #353632 ] |
So, 05 Februar 2006 23:57 |
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"Ronald Raygun" <no.spam [at] localhost.localdomain> wrote in message
news:T6vFf.15384$wl.1672 [at] text.news.blueyonder.co.uk...
> JethroUK© wrote:
>
> > question: excluding special interest rates - how can any other type
> > mortgage still exist in this light ??????????????????
>
> Question: Apart from that you die when you hit the bottom, is
> there any disadvantage to jumping off a cliff?
>
of course the interest rate is key - and that's what attracted me to the
mortgage in the 1st instance
what i meant was that the vast majority of mortgages have 'similar' interest
rates (that's the law of the market place) - so how can they continue to
exist against the overwhelming benefits of off-setting - i dont see how they
can possibly continue for much longer except in the shadow of the same
ignorance of which i was guilty
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| Re: Offset mortgage - win-win [message #353633 ] |
So, 05 Februar 2006 23:54 |
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On Sun, 05 Feb 2006 22:37:39 GMT, Ronald Raygun
<no.spam [at] localhost.localdomain> wrote:
>JethroUK© wrote:
>
>> question: excluding special interest rates - how can any other type
>> mortgage still exist in this light ??????????????????
>
>Question: Apart from that you die when you hit the bottom, is
>there any disadvantage to jumping off a cliff?
Sure, it messes up your hair.
Jim.
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| Re: Offset mortgage - win-win [message #353636 ] |
So, 05 Februar 2006 23:57 |
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"JethroUK©" <reply [at] the.board> wrote in message
news:jqvFf.11996$K42.7335 [at] newsfe7-win.ntli.net...
> of course the interest rate is key - and that's what attracted me to the
> mortgage in the 1st instance
>
> what i meant was that the vast majority of mortgages have 'similar' interest
> rates (that's the law of the market place)
Over 0.5% difference between FD and Nationwide. That's usually easily enough to beat
any offsetting advantage.
- so how can they continue to
> exist against the overwhelming benefits of off-setting
They aren't overwhelming, they are trivial. Provided you don't have vast amounts in
savings - if you do you should pay down your mortgage with them, if the mortgage is
flexible you can withdraw them if you need them.
- i dont see how they
> can possibly continue for much longer except in the shadow of the same
> ignorance of which i was guilty
Here's a challenge - work out whether you'd be better or worse off with the
Nationwide mortgage and a normal current account.
--
Andy
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| Re: Offset mortgage - win-win [message #353637 ] |
So, 05 Februar 2006 23:57 |
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JethroUK© wrote:
> "Ronald Raygun" <no.spam [at] localhost.localdomain> wrote
>> JethroUK© wrote:
>>
>> > question: excluding special interest rates - how can any other type
>> > mortgage still exist in this light ??????????????????
>>
>> Question: Apart from that you die when you hit the bottom, is
>> there any disadvantage to jumping off a cliff?
>
> of course the interest rate is key - and that's what attracted me to the
> mortgage in the 1st instance
>
> what i meant was that the vast majority of mortgages have 'similar'
> interest rates (that's the law of the market place) - so how can they
> continue to exist against the overwhelming benefits of off-setting - i
> dont see how they can possibly continue for much longer except in the
> shadow of the same ignorance of which i was guilty
It seems to me you are still guilty of the same ignorance.
You quote a rate of 5.5% which is not too bad, admittedly, but
hardly particularly brilliant. You are blinkered by your previous
lender's rate of 7% but that was just outrageous and is not a fair
basis for comparison.
Generally BTL rates are of the order of a whole % dearer than
residential ones, and I'm paying 5.99% on a BTL *with* the flexibility
to overpay and reborrow. Therefore you ought to be able to find a
non-BTL flexible lender for below 5%. That would then mean that
you're paying 10% too much, for the pretty pointless benefit which
offsetting offers over and above basic flexibility.
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| Re: Offset mortgage - win-win [message #356531 ] |
Mo, 06 Februar 2006 13:30 |
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> > "JethroUK©" wrote
> > > <snip>
> >
> "Tumbleweed" wrote
> > Didnt you post all this a week ago?
>
"JethroUK©" wrote
> nope ...
I wonder who that was who made two posts using
your ID on 2 February then (3 days ago), especially
the one at 10:07pm talking about FirstDirect offsets?!
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| Re: Offset mortgage - win-win [message #356535 ] |
Mo, 06 Februar 2006 13:51 |
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Tim wrote:
>> > "JethroUK©" wrote
>> > > <snip>
>> >
>> "Tumbleweed" wrote
>> > Didnt you post all this a week ago?
>>
> "JethroUK©" wrote
>> nope ...
>
> I wonder who that was who made two posts using
> your ID on 2 February then (3 days ago), especially
> the one at 10:07pm talking about FirstDirect offsets?!
The three day week? I remember that.
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| Re: Offset mortgage - win-win [message #380092 ] |
Fr, 14 April 2006 18:29 |
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"Andy Pandy" <spam8times [at] wonderful.spam.invalid> wrote in message
news:44nfaeF3267tU1 [at] individual.net...
>
> "JethroUK©" <reply [at] the.board> wrote in message
> news:jqvFf.11996$K42.7335 [at] newsfe7-win.ntli.net...
> > of course the interest rate is key - and that's what attracted me to the
> > mortgage in the 1st instance
> >
> > what i meant was that the vast majority of mortgages have 'similar'
interest
> > rates (that's the law of the market place)
>
> Over 0.5% difference between FD and Nationwide. That's usually easily
enough to beat
> any offsetting advantage.
>
> - so how can they continue to
> > exist against the overwhelming benefits of off-setting
>
> They aren't overwhelming, they are trivial. Provided you don't have vast
amounts in
> savings - if you do you should pay down your mortgage with them, if the
mortgage is
> flexible you can withdraw them if you need them.
>
> - i dont see how they
> > can possibly continue for much longer except in the shadow of the same
> > ignorance of which i was guilty
>
> Here's a challenge - work out whether you'd be better or worse off with
the
> Nationwide mortgage and a normal current account.
>
here we are, only couple months into my offset mortgage, and without paying
one penny more in my monthly repayments i've already paid more than a grand
off my mortgage - dont know what Nationwide interest rates are on mortgage
or current account, but if you want to supply them i'll calculate the
difference - but i have a sneaky feeling it wont be in the same district
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| Re: Offset mortgage - win-win [message #380099 ] |
Fr, 14 April 2006 20:29 |
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"JethroUK©" <reply [at] the.board> wrote in message
news:M5Q%f.14608$zf1.14150 [at] newsfe5-gui.ntli.net...
>
> "Andy Pandy" <spam8times [at] wonderful.spam.invalid> wrote in message
> news:44nfaeF3267tU1 [at] individual.net...
>>
>> "JethroUK©" <reply [at] the.board> wrote in message
>> news:jqvFf.11996$K42.7335 [at] newsfe7-win.ntli.net...
>> > of course the interest rate is key - and that's what attracted me to
>> > the
>> > mortgage in the 1st instance
>> >
>> > what i meant was that the vast majority of mortgages have 'similar'
> interest
>> > rates (that's the law of the market place)
>>
>> Over 0.5% difference between FD and Nationwide. That's usually easily
> enough to beat
>> any offsetting advantage.
>>
>> - so how can they continue to
>> > exist against the overwhelming benefits of off-setting
>>
>> They aren't overwhelming, they are trivial. Provided you don't have vast
> amounts in
>> savings - if you do you should pay down your mortgage with them, if the
> mortgage is
>> flexible you can withdraw them if you need them.
>>
>> - i dont see how they
>> > can possibly continue for much longer except in the shadow of the same
>> > ignorance of which i was guilty
>>
>> Here's a challenge - work out whether you'd be better or worse off with
> the
>> Nationwide mortgage and a normal current account.
>>
>
> here we are, only couple months into my offset mortgage, and without
> paying
> one penny more in my monthly repayments i've already paid more than a
> grand
> off my mortgage - dont know what Nationwide interest rates are on mortgage
> or current account, but if you want to supply them i'll calculate the
> difference - but i have a sneaky feeling it wont be in the same district
>
>
LOL. In two months you have saved £1k off your mortgage. Please tell us
how you came to this calculation.
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| Re: Offset mortgage - win-win [message #380100 ] |
Fr, 14 April 2006 20:38 |
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"Janet Stone" <jstone [at] nospam.com> wrote in message
news:fSR%f.56257$8Q3.46700 [at] fe1.news.blueyonder.co.uk...
>
> "JethroUK©" <reply [at] the.board> wrote in message
> news:M5Q%f.14608$zf1.14150 [at] newsfe5-gui.ntli.net...
> >
> > "Andy Pandy" <spam8times [at] wonderful.spam.invalid> wrote in message
> > news:44nfaeF3267tU1 [at] individual.net...
> >>
> >> "JethroUK©" <reply [at] the.board> wrote in message
> >> news:jqvFf.11996$K42.7335 [at] newsfe7-win.ntli.net...
> >> > of course the interest rate is key - and that's what attracted me to
> >> > the
> >> > mortgage in the 1st instance
> >> >
> >> > what i meant was that the vast majority of mortgages have 'similar'
> > interest
> >> > rates (that's the law of the market place)
> >>
> >> Over 0.5% difference between FD and Nationwide. That's usually easily
> > enough to beat
> >> any offsetting advantage.
> >>
> >> - so how can they continue to
> >> > exist against the overwhelming benefits of off-setting
> >>
> >> They aren't overwhelming, they are trivial. Provided you don't have
vast
> > amounts in
> >> savings - if you do you should pay down your mortgage with them, if the
> > mortgage is
> >> flexible you can withdraw them if you need them.
> >>
> >> - i dont see how they
> >> > can possibly continue for much longer except in the shadow of the
same
> >> > ignorance of which i was guilty
> >>
> >> Here's a challenge - work out whether you'd be better or worse off with
> > the
> >> Nationwide mortgage and a normal current account.
> >>
> >
> > here we are, only couple months into my offset mortgage, and without
> > paying
> > one penny more in my monthly repayments i've already paid more than a
> > grand
> > off my mortgage - dont know what Nationwide interest rates are on
mortgage
> > or current account, but if you want to supply them i'll calculate the
> > difference - but i have a sneaky feeling it wont be in the same district
> >
> >
>
> LOL. In two months you have saved £1k off your mortgage. Please tell us
> how you came to this calculation.
>
it's actually nearer 4 months when i took it out (i got the 2 months from
last time i posted) - i didn't calculate it at all (it's not an
estimation) - it's on my statement & it's actually more than £1k saved
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