Hi all,

I have just spent all evening reading about offset mortgages and am a little confused (which isn't unusual )

I was hoping someone may be able to advise me on my situation.

I've been thinking of switching from my traditional tracker mortgage to an offset mortgage, but cannot work out if it would be to my advantage or not.

I have a mortgage of about £81k which I can switch to a tracker for 3 years currently at 5.79% with my current lender (£599 set up fee). BUT I also have savings of £25k which split between a current, savings & ISA account each earning approx. 5%. I have seen an offset tracker mortgage deal with Woolwich at 0.99% above base rate (5% + 0.99% = 5.99%). Set up fee is £995 for the offset, free legals and valuation, which sounds a good deal.

I wouldn't expect my savings to fall below £20k in the next 3-5 years. My question is whether I have enough savings to make this type of mortgage work for me or not?

Any advice would be more than welcome, Thanks in advance.