A Bank Loan To Pay My Small Mortgage Off?

regularsaver1

jays the OP asked what minimum balance they would offer - as the OP's will be under £25k - do you know?

Jays

Wilky47scrooge wrote:

Thanks for that, I'd never thought of doing it that way. At the end of the term I'll owe £90k and have £73,500 in savings. Do you mean borrow £90K from another lender and then pay £73,500 off the mortgage and get a cheaper interest rate?

regularsaver1

I was looking at this quote from the OP, if he/she offset mortgage of £90k with savings of £73,500, he would pay interest on £16,500 only.

Is that what you meant?

regularsaver1

ah ok yeah sorry i was being thick

i was seeing it as they would wait for their tie in to end, then move mortgage after paying lump sum off, but then they would not need to would they - as that is the off-set

Everest

I agree with what Jay is saying. If you do the offset then you can match the mortgage debt with your savings, cutting your interest bill based on an interest rate lower than you could get on a loan, while also retaining the flexibility of having access to the savings should want them. Best of both worlds.