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Offset mortgage- question

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Peter999_2 Posts: 1,299 Forumite

16 December 2011 at 7:08PM

VfM4meplse wrote: »

Sounds smart in theory but presumably you're still paying the monthly mortgage plus interest? What was the actual saving made per month and the net save since 2005?

Sorry, I never replied to this - only just noticed it.

The interest on the mortgage is £77 a month and I get £272 (31 day months) back. However, I have £80000 invested to get the £272 (I added £10000 of savings to the mortgage money).

I then ask for a mortgage payments holiday and requested to only pay £80 a month. This mortgage payment holiday lasts for 12 months and I just renew it. I've never been queried by the bank about it.

I didn't start doing it until sometime in 2009 when the interest rates plummeted so its made me about £5500 so far.

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