Offset mortgages

Joey99

Registered User
Messages
19
Hi all,

I am looking to find out if any banks nowadays are still offering offset mortgages (where the money held in a current account is set off against the mortgage for the purposes of computing the interest due).

I have been asking the question of BOI but can't get a straight answer and they just keep offering to 'allow' me make lump sum payments against the mortgage but that's not the same thing (or what I'm after).

Grateful for any help the forum members can offer.
 
Not that I know of, as far as I know only National Irish, UB/First Active ever offered them, PTSB had some version I think as well.
 
Danske Bank (Formerly NIB) still mention them on their website.

[broken link removed]

Not sure how much mortgage business they are doing these days though.
 
As Dr Evil says, I think Danske Bank are the only ones offering them these days. Their version is not a tracker, which was part of what made the older versions such a great product.

The Danske Bank interest rate is higher so you'd need to do the maths to see if you'd be better off just going elsewhere for a lower mortgage rate and putting your savings on a deposit earning some interest.
 
As the interest rate charged is 0.25% higher than the standard variable, that’s an extra €250.00 annually for each €100K owed.

I looked at this before and reckoned I would need a constant balance of over €4K for each €100K owed to break even. Not a chance for your average mortgage holder.

There was also a maximum amount mentioned in the small print that can be offset, so even if you have a large amount at your disposal for many years, you won’t be entitled to the offset benefit of it.
 
As the interest rate charged is 0.25% higher than the standard variable, that’s an extra €250.00 annually for each €100K owed.

I looked at this before and reckoned I would need a constant balance of over €4K for each €100K owed to break even. Not a chance for your average mortgage holder.

There was also a maximum amount mentioned in the small print that can be offset, so even if you have a large amount at your disposal for many years, you won’t be entitled to the offset benefit of it.

The figures look worse if you compare the lending rate with the best in the market and factor in the fact that you could get some interest elsewhere on your deposit.

To revert to "grumpy old codger" mode...they made them better in the old days. :D
 
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