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Basically, if you have 25% or more in cash. Eg you have a £200k mortgage and £50k in cash, plus this will increase, then yes you're quids in.
If you have a £200k mortgage and £10k in the bank and you don't tend to have a high cash flow, then fix your mortgage as the discounts the lenders apply will make you better off and stick the £10k in a high interest account.
I worked this all out with a spreadsheet sometime ago.
Plus most mortgages allow you to repay up to 10% pa without charge (and you can effectively get it back by reducing your payments), so unless you are going to offset more than this, you are probably paying a premium for a facility you don't need.
However, you may be able to offset your company funds against your mortgage if you structure it correctly, which can be very efficient.
Got an offset tracker (base +.7) mortgage, works fine for me. Could probably do a bit better changing every 2 years or so but as a contractor and paperworkphobe I don't need the hassle. Very easy to borrow extra cash also, you just write a cheque.
Of course - they only work if you generally have a decent balance and some discipline ! Mate got one with g/f when they moved in together, her policy was to try and max out the available lending, they have switched to a normal one now.
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