I have a First Active Offset Flexible Mortgage (OFM) which before yesterday had an interest rate of 4.9%. I thought this mortgage was a good idea at the time as the interest calculations will be reduced if I have savings in it as well (in the savings account bit attached to the mortgage).
But now with the existence of regular savings accounts paying interest as high as 7.1% (AIB), etc, I am wondering if the OFM is useful at all. Should I avail for a lower interest mortgage and save my money in one the high interest paying savings accounts? Or are these high interest rates a temporary thing and the interest rate offered on savings accounts will revert to below ECB in the near future?
But now with the existence of regular savings accounts paying interest as high as 7.1% (AIB), etc, I am wondering if the OFM is useful at all. Should I avail for a lower interest mortgage and save my money in one the high interest paying savings accounts? Or are these high interest rates a temporary thing and the interest rate offered on savings accounts will revert to below ECB in the near future?