Offset Mortgages

These types of mortgages allow you to total up your various accounts and pay interest on the outstanding balance. e.g. If you have a -?200K mortgage and ?50K in savings, the total is -?150K, and the mortgage interest would be charged on the -?150K. You'll earn 0 interest on your ?50K savings as this was used as the offset.

This, in theory, should allow you to prepay and redraw in a very flexible way. I have an unstable income due to stocks/shares/trading and love the idea of utilising extra cash to offset the mortgage.

These are notes for my quest for a decent mortgage.

Since I am earning in GBP my base currency will be GBP.

The BOE publishes estimates for the GBP yield curve. This can give you an idea of the extra risk banks are taking with the mortgage.

2009

I phoned up for a First Direct mortgage in 2009 but was told I could not get one since I was not an UK permanent resident. Fair enough, I wouldn't lend money to someone who could potentially get kicked out of the country. Other mortgages at the time had tighter lending criteria with higher rates so I decided to wait.

2011 November

Now I'm assessing mortgages again since I recently gained my indefinite leave to remain.

To assess

http://mortgages.firstdirect.com/

http://www.ybs.co.uk/

http://www.santander.co.uk/

http://www.oneaccount.com/

http://www.mhbs.co.uk/