Offset Mortgage

keith_45

If I have an offset mortgage and just transfer the mortgage amount into my offset account every month a few days before the payment is made, what is the difference between this and a "standard" mortgage?

Is it just that I'd have access to any overpayments if required? What would be the differnce if I used the offset account as my current account?

I want to make overpayments, but have the ability to withdraw the overpayments in case of an emergancy. ie: pay off mortgage as opposed to saving. The account is a first Direct tracker at 1%ish above base

Any help would be much appreciated

keith_45

just to clarify, I have the mortgage in place but it hasn't started yet

feisty1

keith_45

This link should help you undertsand the concept, post further questions after reading if unsure

http://www.firstdirect.com/mortgages/offsetzone-how-offset-works.shtml

allan673

ALSO LOOK AT THIS LINK, IT COVERS EVERYTHING
http://forums.moneysavingexpert.com/showthread.html?t=738625