offset mortgage verus savings advice

M

ma&ma

Guest
Hi, I have a mortgage of 200,7570 in an offset flexible mortgage a/c with an interest rate of 3.15. The repayments are 1184 each month which include TRS of 137. I am a single first time buyer in year 5. I have 28,000 savings in my offset a/c but am wondering would i be better off moving this to a higher interest saving a/c. I do not expect to need it in the next 12months? Also should I increase my mortgage repayments now while interest is low as I can afford to do so at the moment?
Many Thanks
 
ma&ma said:
Hi, I have a mortgage of 200,7570 in an offset flexible mortgage a/c with an interest rate of 3.15. The repayments are 1184 each month which include TRS of 137. I am a single first time buyer in year 5. I have 28,000 savings in my offset a/c but am wondering would i be better off moving this to a higher interest saving a/c. I do not expect to need it in the next 12months? Also should I increase my mortgage repayments now while interest is low as I can afford to do so at the moment?
Many Thanks
Click to expand...

To compensate for the 23% DIRT you would pay on the interest earned on your savings, you would have to earn over about 4.2% on the savings to profit from what you suggest. I'd say that is achievable if you shop around.
I say go for it.
 
griswold said:
To compensate for the 23% DIRT you would pay on the interest earned on your savings, you would have to earn over about 4.2% on the savings to profit from what you suggest. I'd say that is achievable if you shop around.
I say go for it.
Click to expand...

Yes, the best rates out there are well over 4.2%. Investec have a 6 month term deposit at 5.58%.
 
Thankfully Im in a similar position to ma & ma.
How would I go about calculating the saving that could be made by doing above.

Are there any calculators available online?
I presume as well that because your interest payments would be higher, that your TRS would also increase?
 
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