Im considering to get a fixed mortgage for two years @ 4.65% to get chance for buying a furniture etc.. then to switch to offset mortgage with first active, anybody did this ? Im first time buyer, opinions needed
The First Active Offset mortgage is at a tracker variable rate and so may be affected by the current credit crunch. Lots of tracker rate products have been increased for new customers or withdrawn in recent weeks.
I guess that's ICS or BOI you're going for with the 2 year fix?
It's currently the lowest 2 year fixed rate - assuming your LTV is over 80% - so take it now before they withdraw it. You could consider Halifax 1 yr discounted tracker at 4.55 going to 5.1 after 1 year - but if all the paperwork is done on the fixed rate you may as well go for it.
No need to decide now about the Offset in 2 years time. See how things are in about 18 months time. The offset may not be the best option for you then.