Scottish Widows Flexible Mortgage

prattmmc

Hi, does anyone have the Flexible Mortgage from Scottish Widows?? If so how does it work as an offset facility??

Newbie06

From my understanding, you have to inform them you want to do this. Then you place your savings in an offset account on which you forgo the interest on your savings; instead your savings balance reduces your mortgage amount owed, thus saving you interest on your outstanding mortgage balance.

You will need to compare the savings you can make by reducing your mortgage amount to the interest you would gain by saving your money elsewhere, e.g. you could be gaining tax free interest in an ISA (if you have not already used up your allowance).