First Active Offset Mortgage

M

MRN

Guest
Hi there

We are about to do an extension on our house and have to add to our mortgage for this which is fine. We are seriously considering changing to an offset mortgage as we are finally at a stage where we could put something away every month. We also have an account that Child Benefit goes into every month and won't be touched until college fees are needed which is a long way off. We also like the fact that we could access our savings so one of the offset accounts could be used for unforeseen expenses that can crop up.

Of course one of the only problems is the rate. FA's offset is 4.8% at the moment and they guarantee that it will never exceed ECB +1.5% which isn't great. Am I right in saying that this is a good mortgage for us as long as we stay disciplined in our savings? Are there hidden catches that anyone has come across?

FA are our current providers which is why we have been dealing with them but are there better offset deals out there?

Many thanks
MRN
 
I have an offset mortgage and it's 1.15% now above ECB base rate...although I'm seriously thinking of switching to NIB as they also offer an offset mortgage but with far better rates.
 
Thanks Pennypicher

How are you finding the offset - are you with FA? Will have a look at NIB - has anyone any experience with NIB?
 
It's great if you've decent money money in savings,only a few hassles...you can't lodge cash into any first active branch...you can't withdraw cash from any branch...slows you down a lot when you're trying to get things done...so you'll need to keep other accounts open...having said all of that I've no loyalty to Banks etc so if I can get a better rate I'll change hence why I'm thinking of moving to NIB....
 
I've had an CAM/offset mortgage with FA for 18 months , orginally went with because I had investments with them so thought they'd be the easiest to deal with. I'm now in the process of changing to NIB LTV mortgage and would not recommend FA whatsoever because.
1: The offset interest rate is higher than their tracker rate.
2:They're not a bank and every simple procedure is a total drama to them.
3:I went into my branch to see if they could offer me any other options when I was considering switching morgage providers, after asking to speak to an advisor (previously tried to make an appointment by phone with no reply) I was told by the receptionist after a brief call to someone out back that it'd cost about a grand to switch the TYPE of morgage with them and to write a letter to HO .
Needless to say I can understand that commission based advisors don't really care in even explaining in person their companies policies, however I ain't going to pay extra(higher interest) for this privileage.

Slán FA.
 
I have been considering switching to FA on the off set mortgage, at present i am with UB on a tracker bet have about 50K in cash a taught it maybe a good product in order to keep the cas on hand.

Does anyone have any other views on this product?
 
i am with FA and fixed at 4.54% for 2 years before christmas- significantly lower than the variable or offset stated here - are you really better off on it?

Incidently i have to agree than any little transaction with FA is an ordeal and only for they are the best value for us we would be gone from them like a shot.
 
Am currently with FA CAM and in the process of moving to NIB.

The reason, FA is ECB + 1.27%. NIB (with an LTV of <50%) is ECB + 0.5%.

I have money with FA, which is reducing the interest, but a better option is to put that against the mortgage thus reducing the LTV of the new mortgage with NIB to below 50%, hence availing of the lower rate.

By the way, am waiting about 2 months with NIB to get mortgage up and running (in Cork), looks like they are still snowed under.
 
First Active Offset rate is 1.15% over ECB. If you have low loan to value or a large mortgage you will get better tracker rates which may be of more benefit than the offset set up. If you have a small mortgage which fortunately I have, (15 yrs old mtg) then a large sum of money in the offset accounts really eats into the term of the mortgage. You would need to be getting an investment rate on the savings in excess of 4.65% (Offset rate) to make more money. By the way First Active advisors are not commission based so this would not account for why you would have difficulty getting advice on switching within their products.
 
Just on the point about every transaction being a problem - the offset accounts can be managed online and your main facility account has Laser card, cheque book, etc. so to my mind the options available are similar to my existing current account arrangements.

Also, the NIB rate isn't dramatically lower for us to now switch - and maybe wait 2 months to get sorted with a new provider!!!

I get the impression that people's experience with FA is generally unfavourable which is worrying but I suppose doesn't make us any the wiser on what option is best - no bank seems to come up as a clear winner for us.

Incidentally, the NIB LTV mortgage has been mentioned - our LTV is possible < 50% - would the LTV mortgage therefore be a good option?

Many thanks
MRN
 
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