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rhowe
If you were paying a repayment mortgage, you would typically still have a monthly mortgage commitment, but that’s not a problem if you can still afford it monthly.
No interest would be charged if you’ve offset, so it would come off the remaining mortgage balance, reducing the amount you would need to offset against.
Worth transferring some money into other savings if you start exceeding the mortgage balance as you won’t get interest from the surplus funds.
I would recommend a 2 year probably, as a 3 or 5 year would still have a penalty to early repay the mortgage if you decided to get rid once savings are higher, or move house and not port the mortgage. The chances are, rates will be cheaper in 2 years compared to the 5 years, and you might prefer the lower risk of paying exit penalties. Depends on how quickly you’re able to build up a comfortable buffer of savings.
Even if rates are 25% for offset mortgages in 2 years, it wouldn’t matter to you, if you’ve offset 100% of the mortgage. But an early exit penalty of 3,4 or 5% might be pretty annoying if you wanted to settle/move home.