Offset Mortgage Management

joeninety1

I have an offset mortgage with an interest rate of 0.98%, my savings earn 4% in a savings account elsewhere. Pretty straight forward no-brainer you would think however, my offset mortgage statement calculates(from my current account which is linked) that I am benefitting at a rate of 5.4% for the balance in the account. All calculators I've had access to say that if I can earn 1.2% or more in savings I'm benefitting, yet the statement seems to prove otherwise, which one do i trust? Lastly, as the interest rates have dropped drastically since I took the mortgage out, (taking into account the differing interest rates of the above accounts) do i reduce my payments to save more per month to benefit long term?

getmore4less

Lender?

Looks like an error

what rate are they actualy charging you? check how much interest is added to the account(or taken out of payments) each month



report the error to them.