Define:Offsetting

v.rajput

Can i give the mortgage provider a lump sum and get it back off them at a later stage.

Or do i give them a lump sum, the reduce my term, and if i want it back they increase my term?

(im answering my own ?s arent i?

it cant be that simple though!

Spoke to halifax today and anyone on a tracker, if rates do go below 3% halifax will not drop any further "minimun rate clause".

phizzimum

well this is how my offset works...

we don't have to give the money over to the bank, but any money in our accounts (current or savings) are set against the total we owe on the mortgage.

eg mortgage £100 000
savings £20 000

interest will only be charged on £80 000

hth

ailuro2

when we overpaid, our money sat in an overpayment fund that we could phone up and tell them to give us back at any time.

It worked just as hard in there as it did telling them to take it off the balance permanently. Our mortgage uis with Co-op, some other providers do differ.



We just took it out and put it in a fixed bond, though, on 5.65% compared to our +0.49%BofE tracker mortgage.:j